India's Cash-Driven Consumption Surges in FY25: Report The average cash dispensed per ATM hit INR 1.3 crore in FY25, with Bihar emerging as a new consumption hotspot alongside Himachal Pradesh and Chhattisgarh.
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India's consumption engine continues to roar in 2025, powered by cash and confidence, according to the latest CMS Consumption Report 2025 released by CMS Info Systems. Based on data from 1,46,000 business points across the country, the report tracks spending through the lens of the CMS cash index (CCI), revealing a nationwide upswing in key sectors, shifting regional dynamics, and a return to physical retail.
Anush Raghavan, president, cash management solutions at CMS Info Systems, noted, "The third edition of the CMS Consumption Report, highlights cash-led consumption trends and emerging hotspots across India… The findings reveal compelling trends that underscore India's ongoing consumption boom."
Consumer durables led the charge with an eye-catching 72 per cent jump in monthly average spending in FY25, a stark rise from just 6 per cent in FY24. This surge reflects a growing appetite for home ownership and the accompanying demand to furnish these spaces, pointing to broader economic optimism.
Multi-brand outlets rebounded sharply, registering a 12 per cent rise in spending after a 29 per cent dip in FY24. The revival is fueled by a trend toward premiumization and a consumer preference for in-person shopping, particularly when it comes to high-value purchases.
The FMCG sector, long considered a bellwether for everyday consumption, also signaled a steady recovery. After a 22 per cent fall in FY23, it climbed four per cent in FY25, indicating a resilient base for essential goods despite rising interest in services and experiences.
Cash remains a dominant force. The average cash dispensed per ATM hit INR 1.3 crore in FY25, with Bihar emerging as a new consumption hotspot alongside Himachal Pradesh and Chhattisgarh. Uttar Pradesh and Delhi continued to hold strong positions for the second consecutive year. Notably, October 2024 through March 2025 saw sharp monthly upticks in ATM withdrawal ticket sizes, peaking at six per cent in March.
The rise in disposable income is evident, with average monthly ATM withdrawals increasing three per cent year-on-year to INR 5,658. Quick Commerce also made significant inroads, growing 10 per cent year-on-year, thanks to hyper-local delivery models meeting instant demand.
