At least 73 percent Indians have said that their household expenditure has increased in 2022 as compared to 2021, as per the Axis My India January Consumer Sentiment Index Survey. At least 50 percent of the surveyed people believe that it’s due to the rising inflation. The sentiment analysis delves into five relevant sub-indices – Overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits, entertainment & tourism trends. The January report reveals that sentiments have dipped across three out of five sub-indices.
“Our Consumer Sentiment Index shows that the sentiments were highest in H1 of 2022 post which it dipped slightly but overall, we ended 2022 with consumer sentiments better than 2021 & much better than 2020. In H2 overall consumer spending had reached a status quo bias where the keenness to increase consumption had been limited, mainly due to inflation & rise in interest rates," said Pradeep Gupta, Chairman & MD, Axis My India.
The survey also notes that expenses towards health-related items such as vitamins, tests, healthy food has surged for 39 percent of the families.
How are Indians investing?
The survey shows that mutual funds, insurance and gold are the top investment options for many in the year 2023. At least 16 percent of the people surveyed said that they will invest this year and 40 percent said that they would invest in MF, insurance, gold, stock markets etc. and other 16 percent would invest in real estate. 34 percent of the people said that they would like to invest for their children’s education.
What is India watching and scrolling through?
At least 52 percent of the people surveyed informed that their consumption of mobile/internet has increased. While Facebook was the most used social media app, Flipkart was the most used e-commerce platform in 2022. While 35 percent of people who surveyed used Facebook more, 25 percent watched content on YouTube.
Commenting on the rising use of social media, Gupta said, “The trend of watching content at the go is on the rise and consumers still believe that the best way to get in touch with people is through social media. The potential of the world-wide-web is huge and is only evolving and one can only expect it further enrich consumer experiences."
Most believe Modi govt handled economy better than other countries
The survey also highlighted that 62 percent believe that the BJP government led by by PM Narendra Modi has been able to handle India’s economic situation better than other countries this year and the expectation for 2023 is creation of more employment opportunities.
Commenting on the positive yet cautious outlook for 2023, Gupta said, “A majority mentioning that the current government has been able to handle India’s economic situation better than other countries reflects India’s overall performance in 2022. Moving forward, the intent to invest & save more in 2023 reflects the current environment of resilience & cautious growth.”
The survey was carried out via Computer-Aided Telephonic Interviews with a sample size of 10,019 people across 36 states and UTs. Seventy percent belonged to rural India, while 30% belonged to urban counterparts. While 61 percent of the respondents were male, 39 percent were female. In terms of the two majority sample groups, 30 percent reflect the age group 36 to 50 years old and 27 percent reflect the age group of 26 to 35 years old.
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