India credit card spending jumps 24% to ₹2,194 billion in March 2025
Synopsis
India's credit card spending posted a dramatic 24% monthly jump to ₹2,194 billion in March, but the headline masks a quieter reality — year-on-year growth was just 8.9%, and per-user spending intensity is barely moving. The credit card market is widening, not deepening.
Key Takeaways
India's credit card spending rose 24% month-on-month to ₹2,194 billion in March 2025 .
Year-on-year growth was a more moderate 8.9% , per Asit C.
Mehta Investment Intermediates .
Total credit cards in force reached approximately 118 million , up 8% year-on-year .
New card issuance stood at 0.93 million in March, up 7.96% year-on-year .
Average spend per card rose 22.8% month-on-month but grew just 0.9% year-on-year , signalling limited spending deepening.
In February 2025 , spending had eased 11% month-on-month to ₹1,772 billion , making March's rebound partly a base-effect recovery.
India's credit card spending surged 24 per cent month-on-month to ₹2,194 billion in March 2025, driven by seasonal factors and a low base, even as underlying trends pointed to a normalisation in consumption growth, according to a report released on Tuesday, 28 April. The analysis, published by Asit C. Mehta Investment Intermediates, cautioned that the sharp monthly uptick does not signal a structural acceleration in demand.
Year-on-Year Growth Tells a Calmer Story
While the month-on-month surge was striking, annual growth was considerably more measured at 8.9 per cent year-on-year, according to the report. Analysts noted that the sector is transitioning from a high-growth phase to a more normalised trajectory, with seasonal spending patterns and statistical base effects accounting for much of the monthly spike.
Credit Card Base Continues to Expand
The total number of credit cards in force rose approximately 8 per cent year-on-year to around 118 million, reflecting steady expansion of the user base. New card issuance also remained healthy, with roughly 0.93 million cards issued in March — up 7.96 per cent year-on-year. The report suggested that growth is being driven more by customer acquisition than by a sharp rise in spending per existing user.
Mixed Signals in Spending Behaviour
Average spend per card rose 22.8 per cent month-on-month, reflecting seasonal momentum, but remained largely flat on a year-on-year basis, edging up just 0.9 per cent. Similarly, average spend per transaction rose on a monthly basis but continued to show a declining trend year-on-year, indicating limited improvement in consumption intensity. These mixed signals suggest that while more Indians are using credit cards, the depth of spending per user has not materially deepened.
February Data Provides Context
The March figures follow a softer February, when credit card spending grew 6 per cent year-on-year but eased 11 per cent month-on-month to ₹1,772 billion. Card issuance in February stood at 1.05 million new cards, up 7.7 per cent year-on-year. The sequential rebound in March, therefore, partly reflects a recovery from February's moderation rather than a fresh demand impulse.
What to Watch
With consumption normalisation underway, analysts will be watching whether April sustains the March momentum or reverts toward the subdued year-on-year trend. The trajectory of new card issuance and per-user spending intensity will be key indicators of whether India's credit card market is entering a structurally higher growth phase or simply cycling through seasonal patterns.
Point of View
But it is largely a seasonal and base-effect story — not evidence of a consumption revival. The more telling metric is the near-flat year-on-year spend per card, which suggests that India's credit card growth is still a distribution play: more cards reaching more hands, without a meaningful rise in spending intensity per user. Until per-transaction values start trending up on an annual basis, the credit card sector's growth story is one of market penetration, not consumption acceleration. That distinction matters enormously for lenders pricing in revolving credit risk.
NationPress
1 May 2026
Frequently Asked Questions
How much did India's credit card spending grow in March 2025?
India's credit card spending grew 24% month-on-month to ₹2,194 billion in March 2025, according to an analysis by Asit C. Mehta Investment Intermediates. On a year-on-year basis, growth was more modest at 8.9%.
Why did credit card spending spike so sharply in March 2025?
The sharp monthly rise was attributed to seasonal spending patterns and a low base from the previous month, rather than a structural acceleration in demand. Analysts noted that the sector is transitioning to a more normalised growth trajectory.
How many credit cards are currently in use in India?
Approximately 118 million credit cards were in force as of March 2025, reflecting around 8% year-on-year growth. New card issuance stood at 0.93 million for the month, up 7.96% year-on-year.
What does average spend per credit card reveal about consumer behaviour?
Average spend per card rose 22.8% month-on-month in March but grew just 0.9% year-on-year, indicating that seasonal momentum rather than a genuine shift in spending habits drove the monthly surge. Per-transaction values also continued to decline on an annual basis.
How does March 2025 credit card data compare with February 2025?
In February 2025, credit card spending had eased 11% month-on-month to ₹1,772 billion, with year-on-year growth of 6%. March's rebound to ₹2,194 billion therefore partly reflects a recovery from February's moderation rather than entirely fresh demand.
