Chandigarh has been recognized as the city with the highest per-household expenditure in India, as well as being one of the wealthiest in terms of household income. This information comes from a comprehensive report conducted by the Mumbai-based People’s Research on India’s Consumer Economy (PRICE) in collaboration with Tata Sons.
Entitled “The Many Urban Indias,” the study reveals that the average household in Chandigarh spends approximately Rs 19 lakh annually, making it the leading city in household expenditure among the top 100 cities across the nation. Furthermore, the average income of households in Chandigarh is estimated at Rs 26 lakh, placing it just behind Bengaluru.
The report highlights Chandigarh’s distinctive economic landscape. Despite having a relatively small population, the city showcases the highest household spending paired with one of the top household incomes in India, indicating robust purchasing power and a wealthy consumer demographic.
Utilizing PRICE’s nationally representative ICE 360° Household Surveys and various official data sources, including national economic statistics, consumption expenditure surveys, census data, and United Nations population projections, the report examines how households in India’s leading cities earn, spend, save, and accumulate wealth. It also provides projections for the years 2025-26 and extends its forecasts to 2030-31.
Chandigarh ranks above Thiruvananthapuram, Vadodara, Tiruppur, and Surat regarding average annual household consumption. Notably, the cities leading in household spending are not among India’s six largest metropolitan areas.
In terms of income, Chandigarh falls short of Bengaluru, which has the highest average household income at Rs 28 lakh annually. The report classifies Chandigarh as a “frontier city,” indicating that it boasts the highest average household income among frontier cities and urban India, significantly surpassing the median income level for the top 100 cities.
Interestingly, households in cities such as Amritsar, Ahmedabad, and Jabalpur are reported to spend more on average than those in Mumbai, indicating the increasing purchasing power in smaller urban centers.
While the report distinguishes between individual household spending and overall consumption, it points out that the largest metropolitan cities—Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, and Kolkata—continue to dominate India’s consumer demand due to their larger populations. Collectively, these cities account for 46 percent of consumption in the top 100 cities.
Overall, the report estimates that the top 100 cities in India generate an annual consumption total of $844 billion. If these cities were classified as a separate nation, they would rank as the 14th largest consumer market globally, surpassing Indonesia and trailing behind South Korea and Turkey.
The report categorizes Chandigarh as a frontier city, a term used to describe emerging urban areas that are becoming significant contributors to India’s economic growth, with income profiles comparable to the largest metropolitan cities.
Other frontier cities like Salem, Bhiwandi, and Jalandhar display similar household income distributions to the “Big Six” cities, with about 62 percent of households belonging to the middle-income bracket and over 14 percent classified as high-income households.
Food expenditures constitute the largest portion of household spending, accounting for nearly 34 percent, while spending on clothing, footwear, and accessories averages 7.2 percent, the highest among all city categories.
Despite rising incomes, frontier cities still have significant potential for increased ownership of consumer goods. The report reveals a cautious financial approach among residents of these cities. Only 16 percent of households invest in long-term savings instruments like fixed deposits and public provident funds, while a substantial 93 percent prefer to keep their savings in accessible bank accounts and post offices, underscoring a preference for liquidity.
Surinder Bahga, a former nominated councillor, commented on the high spending in Chandigarh, attributing it to various factors. He noted that 97 percent of the population is urban, with a negligible rural presence. Most families have multiple earners, and with small family sizes, housing and services are relatively expensive. The city has more vehicles than residents, and its inhabitants enjoy dining out and traveling, reflecting a desire for a high-quality lifestyle.
The reporter, Hina Rohtaki, serves as a Special Correspondent for The Indian Express based in Chandigarh, focusing on the Chandigarh Administration, civic matters, and the unique political situation of the Union Territory.
With over a decade of experience, she is recognized for her investigative journalism, particularly concerning administrative inefficiencies and urban governance. Rohtaki has received prestigious awards, including the Ramnath Goenka Excellence in Journalism Award from the President of India in January 2020 and the Jethmalani prize in the Empowerment category in 2025 for her work highlighting the challenges faced by Covid widows.
Her core reporting revolves around Chandigarh’s administrative structure, the financial management of the Union Territory, and urban development initiatives.
Recent notable articles include investigative reports on administrative expenditures and trends in civic accountability.
