Income In India Remains The Same But Spending May Continue To Grow: RBI Survey
What do Indians think about the way the economy is progressing? According to a survey conducted by the country’s apex bank, citizens are positive about it. According to the Reserve Bank of India’s Consumer Confidence Survey that was conducted across Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Mumbai, citizens feel that the economic situation of the country would get better in the future.
The survey, for the year 2018, studied the perception Indians have about the general economic situation, employment, prices and their own income and spending cycles.
In June last year, 32.6 per cent of the participants said that the economic situation had improved while 24.7 per cent said that the situation was just the same while 40.7 per cent said that the situation had worsened. One year on, 34.6 per cent say that the situation has improved while 42 per cent said that it has worsened. On the other hand, 48 per cent participants said that they expected the situation to become better than before.
In June 2018, 89 per cent participants said that prices had increased while only 8.2 per cent said that prices remained the same. Only three per cent of these participants said that the prices had decreased.
As for the future, 83 per cent believe prices will continue to go up while only 4.7 per cent were hopeful that prices may go down next year. About 12.4 per cent say that the prices may remain the same.
How Indians feel about the way prices are moving is an important indicator in determining real estate trends. Over the last few years, owing to high property prices, unsold inventory stacked up for a long time. Revival is around the corner and sales have improved across India but changes in price and availability of affordable housing had for a long time hindered purchasing decisions of buyers.
More people feel their incomes have increased this year when compared to 2017. As against 23.8 per cent participants last year, 25.3 per cent of participants said that their income improved. However, in both these years, the number of participants who said that their income remained the same were the majority, that is, 53.8 per cent and 52.1 per cent, respectively.
This year, about 50 per cent of participants said that they were hopeful that their income would go up as against 39 per cent who said it would remain the same.
Rising inflation has sled to an increase on spending too, say 83.9 per cent people while 14.1 per cent participants feel it has remained the same. Only two per cent people feel that spending has decreased. Do note that 86.5 per cent people feel that spending has gone up for essential items while 54.3 per cent people feel that spending on non-essential items has increased.
About 87 per cent participants are of the opinion that spending on essential items will continue to increase even in the next year.