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

New Odia CM's tribal heritage 'sets him apart' from Hindutva Brahminical norms

By Bhabani Shankar Nayak*  Mohan Charan Majhi took the oath as the new Chief Minister of Odisha following the electoral defeat of the BJD led by Naveen Patnaik, who served as Chief Minister for twenty-four years. The new Chief Minister is the son of a security guard and a four-time MLA who hails from the remote village of Raikala in the Keonjhar district. He belongs to the Santali tribe and comes from a working-class family. Such achievements and political mobilities are possible only in a democratic society. Majhi’s leadership even in the form of symbolic representation in a democracy deserves celebration.

AMR: A gathering storm that threatens a century of progress in medicine

By Bobby Ramakant*  A strategic roundtable on “Charting a new path forward for global action against Antimicrobial Resistance (AMR)” was organised at the 77th World Health Assembly or WHA (WHA is the apex decision-making body of the World Health Organization – WHO, which is attended by all countries that are part of the WHO – a United Nations health agency). AMR is among the top-10 global health threats “Antimicrobial Resistance (AMR) is a growing and urgent crisis which is already a leading cause of untimely deaths globally. More than 2 people die of AMR every single minute,” said Dr Tedros Adhanom Ghebreyesus, Director General of the WHO. “AMR threatens to unwind centuries of progress in human health, animal health, and other sectors.”

What stops Kavach? Why no time to focus on common trains meant for common people?

By Atanu Roy  A goods train rammed into Kanchenjunga Express on 17th June morning in North Bengal. This could have been averted if the time tested anti-collision system (Kavach) was in place. 

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. 

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".

Top Punjab Maoist who failed to analyse caste question, promoted economism

By Harsh Thakor*  On June 15th we commemorated the 15th death anniversary of Harbhajan Singh Sohi or HBS, a well known Communist leader in Punjab. He expired of a heart attack in Bathinda in 2009.

Saving farmers and consumers from GM crops and food: Philippines court shows the way

By Bharat Dogra*  At a time when there is increasing concern that powerful GM crop lobbyists backed by enormous resources of giant multinational companies may be able to bulldoze food safety and environmental concerns while pushing GM crops, a new hope has appeared in the form of a court decision from the Philippines.