We all know that the Indian consumer is spending more readily today and is even spoilt for choice. But what is he or she splurging on? According to KSA Technopak?s Consumer Outlook Survey 2005, Indians are spending a smaller percentage of their disposable income on essentials like food and groceries (what Technopak calls regular spends) and much bigger chunks on loan repayments and mobile phone bills (emerging spending in Technopak lingo). Significantly, they are saving a smaller percentage of their income.

According to the survey, the share of regular spends is dipping, driven by the decline in savings and investments, food and groceries and consumer durables, while that of emerging spends is rising. Within regular spends, however, the share of experiential spends ? films, music and theatres ? is increasing.

In emerging spends, the share of payments to household help and interest have trebled while the share of mobile bills has risen about five times over 2001-02.

In the regular spends category, the trends are:

nFood & grocery: This category?s share has dropped from 37.8 per cent in 2001-02 to 27.5 per cent in 2004-05, primarily because of falling prices and trading down. In absolute terms, though, there?s a marginal increase over the previous year, fuelled by organised retail formats and upgradation of kirana stores.

nConsumer durables: The share of spending has slipped from 5.9 per cent in 2001-02 to 4.1 per cent in 2004-2005.

nBooks & music: Their share has risen from 5.3 per cent in 2001-02 to 6.1 per cent in 2004-05. In absolute terms too, the category has exhibited major growth.

nSavings and Investments: Down from 5.0 per cent in 2001-02 to 3.3 per cent in 2004-05, reflecting the ?splurge? rather than ?save? mindset of the new Indian consumer.