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

Importance of Bangladesh for India amidst 'growing might' of China in South Asia

By Samara Ashrat*  The basic key factor behind the geopolitical importance of Bangladesh is its geographical location. The country shares land borders with Myanmar and India. Due to its geographical position, Bangladesh is a natural link between South Asia and Southeast Asia.  The country is also a vital geopolitical ally to India, in that it has the potential to facilitate greater integration between Northeast India and Mainland India. Not only that, due to its open access to the Bay of Bengal, Bangladesh has become significant to both China and the US.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

'BBC film shows only tip of iceberg': Sanjiv Bhatt's daughter speaks at top US press club

By Our Representative   The United States' premier journalists' organisation, the National Press Club (NPC), has come down heavily on Prime Minister Narendra Modi for recent "attacks on journalists in India." Speaking at the screening of an episode of the BBC documentary “India: The Modi Question,” banned in India, in the club premises, NPC President Eileen O’Reilly said, “Since Modi came to power we have watched with frustration and disappointment as his regime has suppressed the rights of its citizens to a free and independent news media."

Chinese pressure? Left stateless, Rohingya crisis result of Myanmar citizenship law

By Dr Shakuntala Bhabani*  A 22-member team of Myanmar immigration officials visited Rohingya refugee camps in Cox's Bazar to verify more than 400 Rohingya refugees as part of a pilot repatriation project. Does it hold out any hope for the forcibly displaced people to return to their ancestral homes in the Rakhine state of Myanmar? Only time will tell.

China ties up with India, Bangladesh to repatriate Rohingyas; Myanmar unwilling

By Harunur Rasid*  We now have a new hope, thanks to news reports that were published in the Bangladeshi dailies recently. Myanmar has suddenly taken initiatives to repatriate Rohingyas. As part of this initiative, diplomats from eight countries posted in Yangon were flown to Rakhine last week. Among them were diplomats from Bangladesh, India and China.

Unlike other revolutionaries, Hindutva icon wrote 5 mercy petitions to British masters

By Shamsul Islam*  The Hindutva icon VD Savarkar of the RSS-BJP rulers of India submitted not one, two,or three but five mercy petitions to the British masters! Savarkarites argue: “There are no evidences to prove that Savarkar collaborated with the British for his release from jail. In fact, his appeal for release was a ruse. He was well aware of the political developments outside and wanted to be part of it. So he kept requesting for his release. But the British authorities did not trust him a bit” (YD Phadke, ‘A complex Hero’, "The Indian Expres"s, August 31, 2004)

40,000 Odisha adolescent girls ask CM: Why is scheme to fight malnutrition on paper?

By Our Representative  In unique a postcard campaign to combat malnutrition, aimed at providing dietary diversity, considered crucial during adolescence, especially among girls, signed by about 40,000 adolescent girls from over 10,000 villages, have reminded Odisha chief minister Naveen Patnaik that his government's Scheme for Adolescent Girls (SAG), which converged with Pradhan Mantri Poshan Shakti Nirman  ( POSHAN ) 2.0 in 2021, is not being implemented in the State.

Natural farming: Hamirpur leads the way to 'huge improvement' in nutrition, livelihood

By Bharat Dogra*  Santosh is a dedicated farmer who along with his wife Chunni Devi worked very hard in recent months to convert a small patch of unproductive land into a lush green, multi-layer vegetable garden. This has ensured year-round supply of organically grown vegetables to his family as well as fetched several thousand rupees in cash sales.

Over-stressed? As Naveen Patnaik turns frail, Odisha 'moves closer' to leadership crisis

By Sudhansu R Das  Not a single leader in Odisha is visible in the horizon who can replace Chief Minister Naveen Patnaik. He has ruled Odisha for nearly two and half decades. His father, Biju Patnaik, had built Odisha; he was a daring pilot who saved the life of Indonesia’s Prime Minister Sjahrir and President Sukarno when the Dutch army blocked their exit.