Credit card spending in India is inching towards the pre-covid level as more consumers switch to online shopping during the pandemic and consumer confidence perks up.
At ₹64,737 crore in January, spending through credit cards is ₹1,836 crore shy of the January 2020-level, about a month before the covid outbreak in India left millions jobless. Spending in January this year was still higher than February and March last year, data showed.
It is also higher than in October last year, the peak of India’s festive season. The total number of credit cards issued rose to 61 million in January from 56 million a year ago.
While credit card spending is an important gauge of consumer sentiment, a part of the surge in swiping cards can be attributed to a spurt in online shopping and the overall decline of cash usage.
“As the economy opens up, we should expect credit card spending to grow, but the sentiment is yet to completely recover. Even for consumers whose incomes have been stable, sentiments are not back to pre-covid level, with people still wary of spending,” said Parijat Garg, a digital lending expert.