Urban India Unhappy With Income Growth, Economic Situation: Highlights RBI Survey
RBI’s Customer Confidence Survey of June 2017, conducted in six cities- Bengaluru, Mumbai, New Delhi, Chennai, Hyderabad, Kolkata- with 4890 responses, shows the worsened condition of jobs, income growth, employment and economic well-being since the Modi Government took charge.
People are still disappointed on the above mentioned parameters as they were before the Narendra Modi Government came into power. Modi era brought an all-time high for the stock markets as investors and industrialists pinned high hopes on the new administration. But, the survey indicates that the people in big cities don’t seem to share the market optimism.
The survey shows that confidence in current income levels improved marginally in March 2017 after falling drastically in December 2016. Even after demonetisation, outlook on income levels was less optimistic for the year ahead, the survey highlighted.
According to the March 2017 round of the Consumer Confidence Survey- the current situation index entered into the negative zone to 98.7 in March 2017, a downfall from 102.0 in December 2016, basically due to the economic conditions and price situation. Additionally, the Future Expectation Index (FEI) declined sharply to 121.7 in March 2017 from 129.7 in December 2016.
39 per cent of respondents felt that the economic situation has worsened and about 52.8 per cent are optimistic about the condition improving in the year ahead. Over 80 per cent of the households feel that the prices of products and services or the inflation levels have increased and will continue to do so. Only 15.4 per cent of the respondents feel that the economic conditions had improved in December compared to a year ago, down from 25.6 per cent in November.
Despite of the lows, the current government has done well in maintaining a low fiscal deficit, controlling inflation, cutting down petroleum subsidies, introduction of the Goods and Service tax, the bankruptcy law and the laws regulating real-estate sector. However, the RBI survey points out how people in major Indian cities are still unhappy with their economic wellbeing.
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