NEW DELHI — Credit card spending in India jumped 24 percent in March from the previous month to Rs 2,194 billion, driven largely by seasonal factors and a low base, according to a report released Tuesday.
Despite the strong monthly increase, year-over-year growth remained more modest at 8.9 percent, signaling that overall consumption trends may be stabilizing after a period of rapid expansion, the analysis by Asit C. Mehta Investment Intermediates said.
The report noted that the surge does not reflect a structural acceleration in demand, but rather typical seasonal spending patterns and base effects as the market transitions toward a more normalized growth phase.
The number of credit cards in circulation continued to rise steadily, increasing about 8 percent from a year earlier to roughly 118 million. New card issuance also remained strong, with around 930,000 cards added in March, up nearly 8 percent year-over-year.
Analysts said the data suggests that growth is being driven more by the expansion of the customer base than by higher spending per user.
Spending behavior, however, presented mixed signals. Average spending per card rose 22.8 percent from the previous month, reflecting seasonal demand, but increased only 0.9 percent compared to a year earlier.
Similarly, the average spend per transaction climbed on a monthly basis but continued to decline year-over-year, indicating only limited improvement in consumption intensity.
Earlier data showed credit card spending grew 6 percent annually in February but fell 11 percent from January to Rs 1,772 billion. During that month, about 1.05 million new cards were issued, up 7.7 percent from a year earlier.
The report suggests that while India’s credit card market continues to expand, the pace of consumption growth is easing as spending patterns return to more typical levels. (Source: IANS)
