Tracking India's spending habits is like holding up a mirror to the state of the economy. This is why we keep so close a watch. When the results of the 2001 Census detailed the asset ownership across the country for the first time, we highlighted the patterns that emerged. When consumer spending hit a four-year peak in 2002, our story called it the "Urge to Splurge". The story was based on a radically new survey, which gave us a comprehensive insight into the mind of the Indian consumer. The survey was conducted by management consultancy firm KSA Technopak across 10,000 households in 20 cities. Twelve months on, the predictions made then have been borne out by today's spending patterns. This year's survey gives us a deeper understanding of our spending habits and also provides a trend indicator for the future.

Our November 17, 2003 cover

The KSA study aimed at creating a psychographic profile of the urban Indian consumer using not only conventional parameters of income, but also of age.

The results show that "Downageing"-a term used to describe how people across all age groups make bigger spends at a younger age-has arrived in India. The average age at which Indians bought a home has fallen from the mid-40s to the mid-30s. Salaries of call-centre employees aged below 25 total a massive Rs 2,200 crore, most of which is treated like pocket money by lakhs of youth and finds its way into the market.

The combination of cash in hand and easy credit has made the traditional Indian habit of thrift and living within one's means virtually redundant. From cell phones to cars, the economy is trying to adapt to this economic somersault and changing the way products are defined and sold. Automobile manufacturers now feel compelled to tweak their models every year only because the consumer is looking for a product that must not only perform but look good too.

Using the results of the survey, our cover looks at the dynamic of the generations in the Indian economy. The urban consumer, ranging in age from 8 to 60, has been divided into four categories: the Techno-Babies, the Impatient Aspirers, the Balance Seekers and the Arrived Veterans. You will probably recognise yourself in that list somewhere. Assistant Editor Malini Goyal, who researched and reported this story, says, "The Indian consumer has begun to pay more attention to the EMI rather than the MRP." Heading into the budget week, this is good news for corporates and the economy as a whole. Let us hope the finance minister gives us a reason to keep smiling. he lessons of history rather than bury them.