A new study covering 100 Indian cities has highlighted major differences in how households across the country earn, spend, save and borrow. The Tata study, titled The Many Urban Indias, shows that financial prosperity varies significantly even among India’s biggest cities.
Among the Big Six metros, Bengaluru leads in household income and savings, while Chennai has the highest debt-to-income ratio. Delhi-NCR, meanwhile, has emerged as India’s largest consumption market, largely because of its high number of households.
Bengaluru tops household income
Bengaluru records the highest average annual household income among the Big Six, at around 1.7 times the level seen in Kolkata. However, the study notes that cities outside the major metros also perform strongly. Chandigarh ranks close to Bengaluru on household income, while Vadodara is comparable with Delhi.
Income distribution also varies across cities. Mumbai and Delhi-NCR have the largest numbers of high-income households, while Bengaluru has the lowest proportion of high-income households among the Big Six despite its high average income. Hyderabad has the largest share of middle-income households.
Chennai households spend the most relative to income
Households in India’s Big Six spend about 75% of their income, compared with roughly 58% across the wider group of 100 cities.
Bengaluru has the highest household spending in absolute terms among the Big Six, followed by Delhi-NCR and Mumbai. Chennai, however, has the highest spending as a share of income, with households spending around ₹12.7 lakh annually.
Urban spending patterns are also changing, with households allocating more money towards housing, healthcare, mobility and education, along with convenience and experiences.
Delhi-NCR becomes India’s biggest consumption market
Delhi-NCR’s position as the country’s largest consumption hub is driven by its large household base. The region has around 7.5 million households, with average annual household spending of nearly ₹15 lakh.
The scale of consumption makes Delhi-NCR’s overall market almost as large as Mumbai and Bengaluru combined. However, Chandigarh leads when spending is measured on a per-household basis, while Vadodara and Surat also record higher average household spending than Bengaluru.
Bengaluru leads in savings
The Big Six save around 42% of their income, significantly above the approximately 25% average across all 100 cities.
Bengaluru leads the major metros in both earnings and savings. Mumbai and Delhi-NCR together account for nearly one-fifth of urban India’s household savings.
The study also shows that households are increasingly saving for specific long-term goals. About 46.2% save for old age, with retirement savings particularly prominent in Mumbai and Bengaluru. Delhi-NCR households have a more balanced mix of savings goals, including wealth creation, education and emergencies.
Chennai records the highest debt-to-income ratio
Chennai has the highest household debt-to-income ratio at 27.7%, with housing and vehicle purchases accounting for a significant share of borrowing.
Hyderabad and Bengaluru have considerably lower ratios of around 15%. The study points out that higher borrowing does not necessarily indicate financial stress, as income levels and the purpose of borrowing also matter.
Chennai records both the highest borrowing ratio and the highest absolute borrowing among the Big Six, while Hyderabad has the lowest borrowing ratio and an average borrowing level of around ₹3 lakh.
Bengaluru has a relatively low debt-to-income ratio despite having higher absolute borrowing, reflecting its higher household incomes.
