Skip to main content

Noteban impact: Consumer confidence deteriorates in six top metro cities of India, admits Reserve Bank

By Our Representative
In an unusual admission, the Reserve Bank of India (RBI) has said that the consumer confidence index (CCI) of people, following Prime Minister Narendra Modi’s controversial noteban decision of November 8, 2016, has “worsened” by seven points.  The result is based on a survey it carried out in six metropolitan cities.
In its Consumer Confidence Survey (CCS) report, released by India’s Central bank on February 8, said CCI reached 102 in December 2016, down from 108.7 in November 2016 on a scale of 100 a year ago.
RBI arrived at CCI on the basis of that the index it worked out for the current perception households’ perceptions of five different parameters – general economic conditions, employment scenario, income, spending, and price level and inflation.
The results show that the respondents’ perceptions for all parameters, except one, price level and inflation, deteriorated. While the survey report does not say why this is so, it is well known that, following the noteban, there was a sharp fall in people’s purchasing power, but it led to a relative deceleration in prices, particularly of perishable goods.
The survey, which carries a disclaimer that the “results are based on the feedback received from the respondents” and they “do not necessarily reflect the views of the RBI”, was conducted in six metropolitan cities – Bangaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi –among 4,752 households as respondents. 
Pointing out that households’ perception on economic conditions worsened, the survey data show, as many as 30.3% of the respondents said their current perception on economic conditions “worsened” in December 2016 as against 26.6% in November 2016 and 30.1% in September 2016.
At the same time, the survey shows, the perception on economic conditions remained the same for 24.1% respondents in December 2016, as against 26.6% respondents in November 2016; and improved for 45.7% respondents in December 2016 as against 49.5% respondents in November 2016.
General economic perception (% households)
As for the perception on income, the data show that 25.8% said it had decreased in December 2016 as against 17.2% in November 2016. The survey report says, the respondents’ “outlook on income” in December 2016 “one year ahead was also less optimistic than in the November 2016 round.”
On general spending, the perception of 5.6% decreased in December 2016, as against 3.2% in November 2016. In a further breakup, the survey found that on spending on essential items, the perception decreased for 4.7% in December 2016, as against 3.1% in November 2016. And, on spending on non-essential items, 18.1% respondents said their perception decreased in December 2016, as against 11.1% in November 2016.
The survey report says, “The level of optimism on overall spending was lower for both the current period and one year ahead. This was observed for both essential and non-essential spending, though the fall was more prominent in the case of the latter.”
On the employment front, as many as 39.2% respondents said their perception worsened, as against 31.4 per cent in November 2016. The survey report does not fail to comment, “Households’ current perceptions on the level of their incomes plunged in December 2016 round to a level not seen in the recent past.”
The report further says, “Perceptions on employment worsened in the current (December) round with the net response slipping into negative territory, reversing the improvement witnessed in the November 2016 round.”

Comments

TRENDING

Reducing emission? India among top nations whose coal as energy source going up

By NS Venkataraman*  The State of the Global Climate report by the World Meteorological Organization (WMO) confirmed that the year 2023 was the warmest year on record, with the global temperature of 1.4 degree celsius above pre-industrial 1850-1900 base line.

Lockdown 'total failure' of science more than of politics: Open letter on 4th anniversary

Counterview Desk  In an open letter to fellow academicians, scientists and medical practitioners in India, marking the fourth anniversary of India's lockdown (25 March 2024), the Managing Committee* of the Universal Health Organisation (UHO) has insisted on the need to "repair two years of immense damage to science".

Insider plot to kill Deendayal Upadhyay? What RSS pracharak Balraj Madhok said

By Shamsul Islam*  Balraj Madhok's died on May 2, 2016 ending an era of old guards of Hindutva politics. A senior RSS pracharak till his death was paid handsome tributes by the RSS leaders including PM Modi, himself a senior pracharak, for being a "stalwart leader of Jan Sangh. Balraj Madhok ji's ideological commitment was strong and clarity of thought immense. He was selflessly devoted to the nation and society. I had the good fortune of interacting with Balraj Madhok ji on many occasions". The RSS also issued a formal condolence message signed by the Supremo Mohan Bhagwat on behalf of all swayamsevaks, referring to his contribution of commitment to nation and society. He was a leading RSS pracharak on whom his organization relied for initiating prominent Hindutva projects. But today nobody in the RSS-BJP top hierarchy remembers/talks about Madhok as he was an insider chronicler of the immense degeneration which was spreading as an epidemic in the high echelons of th

Magnetic, stunning, Protima Bedi 'exposed' malice of sexual repression in society

By Harsh Thakor*  Protima Bedi was born to a baniya businessman and a Bengali mother as Protima Gupta in Delhi in 1949. Her father was a small-time trader, who was thrown out of his family for marrying a dark Bengali women. The theme of her early life was to rebel against traditional bondage. It was extraordinary how Protima underwent a metamorphosis from a conventional convent-educated girl into a freak. On October 12th was her 75th birthday; earlier this year, on August 18th it was her 25th death anniversary.

Savarkar 'criminally betrayed' Netaji and his INA by siding with the British rulers

By Shamsul Islam* RSS-BJP rulers of India have been trying to show off as great fans of Netaji. But Indians must know what role ideological parents of today's RSS/BJP played against Netaji and Indian National Army (INA). The Hindu Mahasabha and RSS which always had prominent lawyers on their rolls made no attempt to defend the INA accused at Red Fort trials.

'Flawed' argument: Gandhi had minimal role, naval mutinies alone led to Independence

Counterview Desk Reacting to a Counterview  story , "Rewiring history? Bose, not Gandhi, was real Father of Nation: British PM Attlee 'cited'" (January 26, 2016), an avid reader has forwarded  reaction  in the form of a  link , which carries the article "Did Atlee say Gandhi had minimal role in Independence? #FactCheck", published in the site satyagrahis.in. The satyagraha.in article seeks to debunk the view, reported in the Counterview story, taken by retired army officer GD Bakshi in his book, “Bose: An Indian Samurai”, which claims that Gandhiji had a minimal role to play in India's freedom struggle, and that it was Netaji who played the crucial role. We reproduce the satyagraha.in article here. Text: Nowadays it is said by many MK Gandhi critics that Clement Atlee made a statement in which he said Gandhi has ‘minimal’ role in India's independence and gave credit to naval mutinies and with this statement, they concluded the whole freedom struggle.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah*   The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

'Wrong direction': Paris NGO regrets MNC ArcelorMittal still using coal-based steel

By Rajiv Shah  A new report by Paris-based non-governmental research and campaigning organization, Reclaim Finance, has blamed the MNC ArcelorMittal – formed in 2006 following the takeover and merger of the western European steel maker Arcelor (Spain, France, and Luxembourg) by Indian-owned Mittal Steel – for using use “climate destructive” metallurgical coal for its projects in India.

Attack on foreign students: Gujarat varsity's reputation, ranking at stake, say academics

Counterview Desk  Expressing anguish over the attack on international students in Gujarat University hostels, a letter claimed to have been signed by 122 current and former academics has asked the Gujarat Vice Chancellor, Dr Neerja Gupta, to provide emotional support to the attacked students and to ensure their physical safety.  

Poor private sector engagement 'impacting' carbon pricing policy in Global South

Counterview Desk  The joint report by Environmental Defense Fund and Observer Research Fund, "Navigating Carbon Pricing: The G20 Experience and Global South Prospects", delves into the complex landscape of carbon pricing, examining its application within the G20 nations and the potential implications for emerging economies in the Global South.  The report claims to provide insights and recommendations for effective carbon pricing strategies in diverse economies.  A note: The Environmental Defense Fund (EDF) and Observer Research Foundation (ORF) have launched the Navigating Carbon Pricing: The G20 Experience and Global South Prospects” report. The report delves into the complex landscape of carbon pricing, examining its application within the G20 nations and the potential implications for emerging economies in the Global South. The report offers a comprehensive analysis of various carbon pricing instruments currently in existence, providing valuable i