GST 2.0 Cuts Grocery Bills, But Rising Rents Tighten Household Budgets
What Happened
A Home Credit India study found that grocery spending fell 8% in 2026 compared with 2025, while rent expenses jumped 21%, highlighting the mixed impact of GST 2.0 on household finances. Families appear to be using savings from lower prices on groceries and other essentials to improve food quality, boost savings, and spend more on education rather than increasing discretionary consumption.
Key Takeaways
GST 2.0 has provided relief on several everyday expenses, but rising housing costs are offsetting part of the benefit. The data suggests Indian households are becoming more selective with spending, prioritising education, healthcare and savings over lifestyle upgrades.