The Indian shopper is back in business. As the economy gets back on the growth track, individual spending is up and rising, according to credit card spending data from October 2009 to January 2010, released by the Reserve Bank of India.
For the quarter ended December 2009, average credit card spend went up 22 per cent over the same period last year, from Rs 2,153 to Rs 2,623.
This year too started off strongly with the industry witnessing a total spending of Rs 5,425 crore in January against Rs 5,171 crore the same month last year.
The average card spend went up by 32 per cent for this month.
“We are witnessing a firm up-trend over the last three months and 2010 started strongly with a year-on-year growth of over 40 per cent on card spend. As the economy picks up steam, we are optimistic for card spend to achieve the same growth we witnessed in 2007-08,” said Simran Kalra, vice-president, American Express.
“I think in couple of months we will achieve the levels of spending in 2007-08,” said Parag Rao, executive vice-president (credit cards), HDFC Bank.
American Express witnessed a rise in billing across segments such as lodging, restaurants, retail and aviation. HDFC Bank saw a rising trend in online spending.
Credit card companies believe this increased spending will grow significantly in India as currently card spending as part of total consumer spending is low.