India vs Bharat: Decoding Gen Z’s wallet share in metro and tier-II cities

They own iPhones, wear branded clothes, are confident about managing personal finances, but don’t make uninformed decisions—the Gen Z generation believes in making informed choices and shunning debt as much as possible.

India’s Gen Z in four metros —Delhi, Mumbai, Chennai and Kolkata—are not four versions of the same consumer; they are four separate demand clocks running at different speeds. The BT–PRICE Gen Z Consumption Behaviour Survey found that across all regions, Gen Z dreams converge around home ownership, career growth, and mobility, with over half aspiring to buy both a car and a house.

This generation relies on the use of artificial intelligence (AI) for making investment decisions, has a higher risk appetite, and maintains a balanced portfolio with gold, mutual funds and fixed deposits making a major chunk of their portfolio.

“They come for investment advice fully prepared by doing a good analysis of their portfolio using AI. Investment advisors are like a second opinion for them, to see if the plan suggested by AI is correct or needs amendments,” says Upasana Mondal, a Securities and Exchange Board of India Registered Investment Advisor.

The BT-PRICE survey analyses the consumption behaviour, investment patterns, and spending priorities of the younger generation.

Financial Factor

On savings, they are disciplined, with 39% of the 4,311 people surveyed saving 20–40% of their income. The survey found that lifestyle borrowing is moderate. Aspirational intent is strong, as 63% aspire to buy both a car and a house; however, timelines are different. Brand loyalty for this group is conditional, driven by a mix of quality (57%) and value for money (19%). Growth in the North for brands will depend on justifying their premium.

Mondal says that Gen Z is more willing to take risks than other age groups, but these risks are not impulsive. Instead, they are based on careful research and informed choices. In contrast, older generations are less likely to rely on AI for investment decisions and often place greater trust in traditional investment advisors.

“They don’t take risks blindly and avoid frequent fund switches, realising the impact on capital gain taxation. They look for a long-term, well-balanced portfolio and have exposure to international markets. One of my young clients asked me to draw a Dreamlining plan. It was interesting to hear a goal-based investment plan from them. Also, they are now low on credit card spending, another change from Gen X,” she adds. According to the survey, this generation prefers borrowing from family and friends over credit cards.

Regionally, southern India is the most structured in financial behaviour. While only 29% of those surveyed feel confident, they compensate with discipline. About 44% prefer fixed deposits/public provident fund (PPF) schemes, while 31% invest in gold, and 26% in systematic investment plans (SIPs).

West India has come out as the most financially confident market in the survey, with 63% of the Gen Zs surveyed reporting high confidence in managing personal finances. This confidence translates into premium behaviour, with 34% saying they buy only luxury brands, while 38% said they purchased premium brands regularly. East India presents the sharpest contrast between aspiration and financial stability. The survey found that 52% saved only up to 20% while 20% of those surveyed do not save at all. However, 62% report being confident about managing finances.

Optimism is high across all four metros, with over 80% of respondents expecting to spend more the next year.

That said, spending intentions vary by region. Respondents in Delhi and cities around Jaipur are more inclined towards sharp increases in the near term, while Mumbai favours a steadier, more measured rise. Chennai, meanwhile, strikes a more cautious note, balancing confidence with careful attention to expenses and long-term planning.

Aspirational goals

Mumbai stands apart in its premium buying behaviour, with 54% of respondents saying they purchase only luxury or premium brands—far higher than in any other metro. In contrast, consumers in Delhi, Kolkata, and Chennai tend to view premium purchases as occasional or situational. This makes Mumbai a premium accelerator market, while other metros function as premium incubation zones, where trust and timing matter more than brand name alone.

The survey shows clear regional differences in spending priorities. While West India moves faster towards experiences and premium purchases, consumers in the North and South tend to prioritise asset-building before indulgence. East India, meanwhile, places a strong emphasis on upward mobility, even if it means stretching finances. Notably, 84% of respondents nationwide expect their spending to rise over the next 12 months, largely driven by inflation.

Among the metros, Mumbai emerged as the most brand-secure market. An overwhelming 85% say product quality is their primary purchase driver, and just 12% are likely to switch brands—the lowest share across metros. Delhi tells a different story. About 44% are likely to switch brands, and value for money (20%) carries significantly more weight in purchase decisions. In effect, Mumbai tends to reward consistency and proven quality, while Delhi consumers are more inclined to reassess their choices. Kolkata’s Gen Z stands out for its openness to experimentation. About 38% are likely to switch brands, and fashion dominates spending, with 54% reporting it as their top category, reflecting a strong role of curiosity and cultural identity.

Chennai, meanwhile, depicts a distinct financial behaviour. Half of respondents say they borrow frequently or occasionally from family or friends for lifestyle spending, the highest incidence among the metros.

When choosing a job, Gen Z prefers a balance between long-term career progression and financial growth, while job security is a distant third across both metro and non-metro cities.

Social Media

While Instagram dominates discovery across metros, conversion behaviour diverges sharply. In Mumbai, 89% of the respondents rarely buy after discovering products on social media, signalling a highly filtered consumer. In Kolkata and Chennai, however, there are much higher post-exposure purchases, indicating that content reach alone does not translate into commercial impact, and influencer return on investment differs sharply across cities.

When it comes to entertainment, Gen Z spreads its spending across multiple formats like OTT platforms, cinema, YouTube, stand-up comedy shows, and live events. Mumbai presents a peculiar case. Despite being the centre of the Indian film industry, it has the lowest share of spending on cinema (24%) among metros. Instead, young consumers in Mumbai lean more towards stand-up comedy and live events, a preference that is also visible across the western region. In contrast, Gen Z in the eastern region allocates the highest spend to OTT platforms, while cinema sees stronger traction in northern and southern regions.

Though e-commerce and quick commerce platforms have changed how the country purchases its daily essentials, Gen Zs in metros, except Mumbai, still prefer going to physical stores for their daily needs. Mumbai stands out sharply in quick-commerce adoption. As many as 83% prefer using quick-commerce apps for daily purchases, while the figure stays below 45% in other metros. Delhi youngsters rely on both quick commerce and physical stores, while Kolkata and Chennai prefer going to the market over delivery at home. Overall, the western region reports 71% preference for quick-commerce apps, compared to under 30% across the other three regions.

@richajourno