A majority of Indian consumers said inflation, falling job opportunities and shrinking salaries over the last year will curb their season spending.

An Assocham study found the majority of the consumers plan to spend less this festive seasons as prices have gone up (51 per cent), savings have fallen (20 per cent) and 17 per cent are saving for a big purchase.

Most of the respondents plan to cut down on personal expenses or go bargain hunting to keep their festive budgets in control. Over 54 per cent of the respondents will buy only on sale or discounts, 27 per cent will spend less on sweets, clothes and other goods, 12 per cent will buy fewer gifts, five per cent will buy recycle gifts and two per cent will buy a group gift.

Only a small percentage believe festivals are the time to splurge, even as discounts remain the biggest attraction for most buyers.

Consumers have become savvy as most of the respondents opted for an instant cash discounts as the best deal, rather than choose ones where they would have to spend more for stuff they may not need, added the survey.

Most consumers feel that discounts and freebies may not be genuine. About nine per cent of the respondents believe most festive offers by retailers are genuine while 38 per cent don’t believe on these festive offers.

Over the last five years, income has halved and expenditure has doubled. There has been more than 80 to 100 per cent rise in the prices of essential items.

Over 65 per cent of the respondents said that they are going to make sweets and savouries at home on festive seasons as it will definitely save money and time.

“The government must look to manage its wasteful expenditure by enforcing austerity drive so as to reduce its borrowing from the markets which ultimately have soothing effect on interest rate there by providing some relief on inflation,” said DS Rawat, secretary general at Assocham.

GB