EL7.AI
Macro EconomyMedium•30 October 2026•
2 min read

India’s card spending falls 5.9% year on year in September despite monthly rise

Key Facts

1India’s credit card spending fell 5.9% year on year in September, its first annual decline since February 2021.
2Spending reached 2.04 lakh crore rupees in September, up 0.7% from about 2.02 lakh crore in August.
3CareEdge Ratings forecast spending of between 2.28 and 2.38 trillion rupees in October.
4The flash Services Index rose to 56.2 points in October, while the Composite Index climbed to 56.7 points.
5Employment at services firms was unchanged, ending a nine-month run of job creation.

India’s credit card spending fell 5.9% year on year in September, its first decline of this kind since February 2021, according to data cited in media reports from the Reserve Bank of India. But the month-on-month comparison showed an increase of about 0.7%, with spending reaching 2.04 lakh crore rupees, compared with about 2.02 lakh crore in August. The difference between the two comparisons reflects a decline from September last year alongside an increase from the previous month. Festive-season purchases began in the final week of September 2025, lifting spending above August levels at the time. CareEdge Ratings said this year’s timing could push a larger share of purchases into October.

CareEdge Ratings forecast card spending would rise to a range of 2.28–2.38 trillion rupees in October as festive sales begin, and remain strong in November during Diwali. The firm said, "We expect spending to rise to 2.28–2.38 trillion rupees in October as festive sales begin, and remain strong in November during Diwali." These figures remain the firm’s forecasts, while recorded spending in September was 2.04 lakh crore rupees. IDBI Capital also said that the festive season arriving later in the year makes October likely to account for a larger share of festive spending. It added, "With the festive season falling later this year, we expect October to account for a larger share of festive spending."

In a separate indicator of business activity, India’s HSBC flash Services Activity Index rose to 56.2 points in October, from 55.2 in September. The flash Composite Index climbed to 56.7 points, compared with its final reading of 55.9 in the previous month, exceeding the Reuters poll average forecast of 56.1. Reuters said, "India’s flash composite PMI rose this month to 56.7 from September’s final reading of 55.9, exceeding the Reuters poll average forecast of 56.1." By contrast, employment at services firms was unchanged, ending a nine-month run of job creation. Total export orders rose at their fastest pace in six months, according to the report.