RBI Survey: Fewer Indians Have Hopes of Employment, Confidence in Economy Also Declining Since 2014
RBI’s consumer confidence survey reveals Indians have “lower optimism on the employment scenario and household spending.”
Indians are less optimistic about their future and their belief in the Indian economy has also dipped as compared to November 2014 — a few months after Narendra Modi came to power — this is the crude reality highlighted by a Reserve Bank of India (RBI) survey.
The current situation index (CSI), which is a measure of how consumers currently feel about the general economic condition, is compiled on the basis of net responses on the economic situation, income, spending, employment and the price level for the current period. CSI stands at 93.9 for November 2018, as compared to 111 and 109 in November 2014 and November 2016, respectively, registering a consistent downward trend.
Similarly, the future expectations index (FEI), which is an estimation of how consumers feel that the situation might change in the year ahead is “moderated due to lower optimism on the employment scenario and household spending,” the survey suggests.
In November 2018, 47.2 per cent believed that their employment opportunities had worsened from a year ago. This is a sharp change from March 2014, when only 28.7 per cent people had suggested that their employment situation had diminished.
In March 2014, 34.3.9 per cent people had said that their income had increased from what it was a year ago. However, in November, only 29.9 per cent said that. their income had increased from a year ago.
General economic situation
31.2 per cent people in November 2018, believed that that the economy will get worse, as compared to 21.1 per cent people who thought this in March 2014.