Pessimism regarding the Indian economy among urban consumers has fallen below 50% for the first time since the start of the pandemic, according to the Reserve Bank of India’s (RBI) latest survey. Out of the respondents, 48.9% believe that the economy has worsened, representing the lowest percentage recorded since the outbreak of the pandemic. However, despite this positive shift, concerns persist regarding employment opportunities, with around 47-49% of urban consumers expressing pessimism about their employment situations.
Conversely, pessimism related to income levels has decreased significantly, nearing pre-pandemic levels, as only 26.3% of urban consumers reported a decline in their income compared to the previous year. Notably, over 90% of respondents continue to observe increased price levels for commodities, reflecting ongoing inflationary pressures.
While the current situation index (CSI) has shown improvement, its rate of ascent has slowed, reaching levels comparable to the pre-pandemic period. It is worth noting, however, that confidence levels remain relatively low when compared to the end of 2018, before the economic slowdown. Similarly, the future expectation index (FEI) has witnessed slight improvement but still lingers below pre-pandemic levels.
