How India is becoming a nation of spenders, not savers

New Delhi, India: When Gurgaon-based couple Mukesh and Aditi Srivastava were zeroing on which car to buy, they were sure they wanted a mini-SUV in black and a sunroof. Even though this was almost 2-3 lakhs above their budget, they went ahead and booked themselves a shiny-new black Tata Harrier worth Rs.20 lakhs. 

“My dad didn’t agree with our decision.” Mukesh agrees, “ He wanted us to go for the i20 or a smaller hatchback”.”We wanted to buy something that suits our lifestyles- impromptu trips to the mountains or long drives with friends, experiences that we cherish forever. Kal kisne dekha hai?”

Just like the Srivastavas, a growing tribe of young people are embracing the You Live Only Once(YOLO) mindset, where experiences in the present are prioritized over saving for tomorrow.

An import from the West, and amplified by social media, the YOLO mindset has seen young people splurging way beyond their means on luxury products and experiences, much to the disapproval of their parents.

Many are enamoured by what they hear and see on social media or by their friends, taking exotic holidays, splurging lakhs for concert tickets, or just eating out way too often. They are doing this even as job growth remains slow, inflation is stubbornly high, and increments are not what they used to be.

This ‘live the moment’ lifestyle has sparked countless debates online, both of empowerment and concern. Some boast about ‘retiring’ in a beachside home in Thailand after earning millions in the stock market, while concerned parents are searching for ways to help their children pay back the debts they incurred for experiences that were way beyond their means.

With Millennials and Gen Z prioritizing instant gratification over financial stability, the “quick commerce” industry has expanded significantly, growing from practically nothing in 2018 to a current value of $2.3 billion (and still growing). 

Brands have aligned their whole marketing around the ‘If Not Now, then Maybe Never’ narrative, where, short term discounts and offers enticing the youth to buy things that boost their self-images and offer unforgettable experiences. The ease of UPI and Buy Now, Pay Later credit options have helped here.

The YOLO phenomenon has helped boost consumption in this gloomy economy, even at the cost of increasing indebtedness, mental health issues, addiction and a host of other consequences that follow mindless consumption patterns. 

Though parents and policymakers have voiced their concerns, the government is yet to react to this. For them, more consumption equals more opportunity for taxes and that means more money to pay off debts. What about the hapless unemployed youth desperately looking to provide for his family? What about the parents trying to deal with their recently laid off son’s alcohol addiction? Wait till the next election to find out.

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