Historically, the narrative of consumption in India has been focused on major metropolises such as Mumbai, Bangalore, Delhi, Chennai, Hyderabad, and Kolkata. However, a new map of consumption is currently forming, with Surat at its center.
Surat ranks seventh among leading consumption markets in India, yet it is the largest market outside the six main metropolises. This indicates that household spending in India is beginning to shift away from traditional urban centers. Surat's consumption market stands at $34 billion and surpasses the figures of Ahmedabad and Pune; furthermore, according to the report 'The Many Urban Indias,' the average household consumption in Surat is higher than in Bangalore.
Among the top 15 cities whose consumption market exceeds $10 billion, these cities account for about two-thirds of the total consumption in 100 surveyed cities. This does not mean that Mumbai or Bangalore lag in overall expenditure; the six major metropolises still account for 46% of the total annual revenue of $844 billion across these 100 cities. Nevertheless, Surat proves that the opportunities for consumption growth in India are no longer limited only to traditional metropolises.
Surat is not the only city standing out in terms of consumption levels; Chandigarh and Tiruvannanthapuram recorded the highest average household consumption in the country, which is attributed to high savings rates and low debt levels in these cities.
The rise of Surat is part of broader transformations in India's urban economy. Although these cities constitute less than one-fifth of India's total population, they generate about a third of the country's total consumption. Total household expenditure in these cities reaches 74.5 lakh crore rupees, equivalent to $844 billion. The annual growth rate of household expenditure in these cities is 10.4%, compared to 8.5% across all of India. Surat stands out in this context due to a combination of large population and unusually high per capita spending, and the report classifies it as a 'boomtown.' This category includes 19 fast-growing cities, including settlements like Pune, Ahmedabad, Lucknow, Coimbatore, Jaipur, Indore, and Vadodara, which are becoming future major consumer markets due to their large populations and high household spending.
According to the report, in Surat, Chandigarh, Tiruvannanthapuram, and Vadodara, household spending exceeds that in the six major metropolises. Surat's success is driven not only by its large population but also by the presence of growing-income families with sufficient purchasing power. This is where the unique appeal of Surat's history manifests. The report states that the number of middle and high-income families in Surat is among the largest pool in the country and is actively growing. The reasons for this are linked to textile entrepreneurship, diamond trading, and the improved economic status of the migrant population in the city.
The average household income in Surat is higher than in Hyderabad, Chennai, and Kolkata. In Bangalore and Chandigarh, the highest average income is around 28 lakh rupees. Moreover, the average income in Pune, Tiruvannanthapuram, and Surat exceeds the average income in three of the six major metropolises. These changes are occurring against the backdrop of rapid growth of the urban middle class in India. The share of middle-income families earning between 6 to 36 lakh rupees annually in the top 100 cities has increased from 29% to 53% over the last decade, with a projection of reaching 60% by 2030–2031.
High income is also growing faster. The share of families earning more than 36 lakh rupees annually has increased from 3% to 12% over the last decade, with a projection of reaching approximately one-fifth of all families by 2030–2031. Thus, Surat directly benefits from the change in income, which is transforming the model of consumption in urban settings in India.
As incomes rise, lifestyle changes are reflected in spending patterns. In the top 100 cities, the share of food expenditure in households has decreased to 31%, compared to almost 38% ten years ago. Furthermore, urban families now spend about two-thirds of their total budget on services. Housing, transport, and education are becoming increasingly significant expenditure items in the budget. In boomtowns like Surat, total expenditure for the 2025–26 period amounted to 20.1 lakh crore rupees, with the average household expenditure reaching 12.2 lakh rupees, showing an annual growth of 10.5% over the last decade. In these cities, 31.1% of total expenditure is allocated to food, 25.8% to housing and utilities, 19.2% to transport, and 6.8% to education. Housing acts as the main driver of consumption. Household spending on housing and related services in boomtowns is approximately 3.5% higher in real terms than that of families in the six major metropolises.