The Indian economy is on a growth track again as is evident from the rise in spending levels of individuals. The data collected on credit card spending from October 2009 to January 2010 by the Reserve Bank of India has revealed the fact.

The quarter ended on December 2009 showed that the average credit card spend has risen from Rs 2,153 to Rs 2,623, an increase by 22 % as compared to the figures from same period last year.

The year 2010 has also taken a positive start with the credit card industry visualizing a a total spending of Rs 5,425 crore in January against Rs 5,171 crore the same month last year.

In percentage terms, the average card spend has gone up by 32% for the month of January.

"We are witnessing a firm up-trend over the last three months and 2010 started strongly with a year-on-year growth of over 40 per cent on card spend. As the economy picks up steam, we are optimistic for card spend to achieve the same growth we witnessed in 2007-08," said Simran Kalra, vice-president, American Express.

Parag Rao, executive vice-president (credit cards), HDFC Bank said, "I think in couple of months we will achieve the levels of spending in 2007-08."

American Express (AmEx) has seen an increase in spending across segments like lodging, restaurants, retail and aviation, while HDFC has witnessed a rose in online spending.

The credit card companies' project that the card spending in India is going to rise further as the ratio of card spending to total consumer spending is still low.