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Millennials and Gen Z Fuel India's Luxury Boom with Digital Finance
2 Aug
Summary
- 40% of smartphones in India bought through EMIs, up to 70% for iPhones
- EMIs and no-cost credit options make high-ticket purchases more accessible
- Rising credit dependency may carry long-term risks for consumers
As of August 2025, millennials and Gen Z in India are driving a surge in luxury consumption through the use of digital finance tools like EMIs (equated monthly instalments) and no-cost credit options. From high-end smartphones to international travel, these flexible payment solutions are making previously unaffordable purchases more accessible.
According to industry estimates, around 40% of smartphones in India are now bought through EMI plans, with the figure rising to nearly 70% for iPhones. Companies are leveraging this trend, offering seamless credit options on e-commerce platforms and travel booking sites to cater to the growing demand for aspirational purchases.
However, this credit-fueled consumption may carry long-term risks for consumers. A recent study found that salaried individuals in India allocate over 33% of their monthly income towards loan EMIs, potentially straining their financial well-being. As the reliance on digital finance tools continues to grow, there are concerns about the sustainability of this trend and its potential impact on consumer debt levels.
