Skip to main content

48% India's urban households say, economic situation worsening, highest since Dec 2016: RBI report

By Our Representative
In a warning signal to the Government of India’s policy makers, latest Reserve Bank of India’s (RBI’s) Consumer Confidence Survey (CCS) for May 2018 has suggested that in six major metropolitan cities – Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi – 31.9% of households felt that there was an improvement in the general economic situation as against 45.7% in December 2016.

Worse, the percentage of households which felt the general economic situation in India has worsened has reached peak since December 2016 – it is 48% as against 30.7% in December 2016. In all, the RBI obtained responses from 5,077 households about perceptions and expectations on the general economic situation, the employment scenario, the overall price situation and their own income and spending.
Interestingly, those the percentage of households which feel that the economic situation has neither worsened nor improved, but has remained stagnant, has also gone down to 20.1%, lowest since December 2016, the earliest month for which the RBI has released data.
At the same time, the percentage of households which feel that the general economic situation would improve over the coming one year has down from 66.3% in December 2016 to 49.5% in May 2018. As those feeling that it would remain the same is up from 16.6% to 22.7%; and those who feel that it would worsen is up from 17.1% to 27.8%.

Coming to the perceptions on employment, the RBI data show that, while those feeling the situation has improved over the last two-and-a-half years has almost remained stagnant – it was 31% in December 2016 and is 31.5% in May 2018 – the percentage of find the situation worsening is up by five percentage points, from 39.2% to 44.1%. And, as for those feeling the situation has not changed is down from 29.8% to 24.4%.
Coming to the perceptions on employment over the next one year, those think that it would improve is down from 57.3% to 49.5% over the last nearly two-and-a-half years, those who think it would remain the same is almost stagnant at 24-25%, while those who think that it would deteriorate is up from 18.6% to 25%.
As for other indicators, those who feel that the price level price level has increased is up from 73.9% in December 2016 to 88.2% in May 2018; those who feel that inflation level would rise is up from 57.8% to 79.2% during the same period; and those who feel that incomes have increased has almost remained stagnant at around 27% over the last one-and-a-half years.
As for spending, those who feel that it has generally gone up has increased from 73.5% to 83.2%; those who feel that the spending on essential items has gone up is up from 76.9% to 85%; and those who feel that spending on non-essential items has gone up has also increased from 37.3% to 52.1%.
Taking an overall view of things, even as finding that there is a slight deterioration in the Consumer Confidence Index following the last survey, which was in March 2018, RBI comments, “Prices continued to remain a concern for households, and their outlook for the next year was largely unchanged”. It adds, “Households’ responses shifted towards similar or lower levels of expenditure, possibly reflecting pessimism on the perception and outlook on prices.”

Comments

TRENDING

Call to support IIM-Bangalore professor, censured for seeking action against Uniliver

Counterview Desk
Sections of the Indian Institute of Managements (IIMs) across India have strongly reacted to the decision to censure Dr Deepak Malghan, a faulty at IIM-Bangalore. Prabhir Vishnu Poruthiyil, who is faculty at IIM-Tiruchirapalli, has sought wider solidarity with Dr Malghan, saying, "The administration has censured Deepak for merely suggesting a meaningful action against Hindustan Unilever for their abysmal environmental record" by “disinviting” it for campus placement.

Actionable programme for 2019 polls amidst lynch mobs, caste violence, hate mongering

Counterview Desk
Reclaiming the Republic, a civil rights network, has released a document prepared under the chairmanship of Justice AP Shah (retired) -- and backed, among others, by Supreme Court advocate Prashant Bhushan, bureaucrat-turned-human rights activist Harsh Mander, economist Prabhat Patnaik, Right to transparency activist Anjali Bhardwaj and social scientist Yogendra Yadav  (click HERE for full list) -- with the "aim" of putting forth policy and legislative reforms needed to “protect” and “strengthen” the Constitutional safeguards for India’s democratic polity.

Noam Chomsky, top scholars ask NRIs to take stand on human rights violations in India

Counterview Desk
Renowned world scholars, including Noam Chomsky, James Petras, Angela Davis, Fredric Jameson, Bruno Latour, Ilan Pappe, Judith Butler, among others, have issued a statement castigating the Narendra Modi government for allegedly creating an environment of fear through arrests, intimidation and violence.

India under Modi "promoted" crony business, protected financial fraudsters, fueled bigotry

By Sandeep* and Rahul Pandey**
Narendra Modi's ascension to power was accompanied with jubilation and expectation. His supporters were expecting an end to era of corruption and initiation of good governance which was described as Achche Din. His party's adherence to idea of nationalism was believed to make India a vibrant country and guide India to be a world leader. He gave the slogan of 'Sabka Saath, Sabka Vikas' conveying that his government was for all.
Corruption The government system is infested with corruption. A minimum of 10% is siphoned off from government schemes and projects, some of which goes back to political party in power and remaining is pocketed by various administrative, executive and political functionaries. This corruption continues and has increased. Now an additional Rashtriya Swayamsewak Sangh (RSS) person working as Official on Special Duty or some equivalent position in every government department also has a share in this booty.
The Narendra M…

Inviting Rajapaksa to India "insult" to 1,40,000 Tamils killed by Sri Lankan army

Counterview Desk
In the context of Sri Lankan opposition leader Mahinda Rajapaksa being invited in India, about 75 human rights activists*, claiming to be concerned about rights violations during the civil war in Sri Lanka, especially in 2009, have joined together to express their dissent through a statement.

A Godse legacy? BJP rulers have "refrained" from calling Gandhi Father of the Nation

By Dr Hari Desai*
What an agony! On one hand, the entire India is celebrating the 150th birth anniversary of Mahatma Gandhi under the leadership of Prime Minister Narendra Modi, but on the other side, so-called Hindu Mahasabha members have been found mock-enacting the killing of the Mahatma and celebrating the murder by distributing sweets!

No aadhaar, no ration? Hard blow by Gujarat govt on poor and marginalized

By Pankti Jog*
Only those who have aadhaar registration and linked it with ration card will get ration from a Public Distribution System (PDS) shop. This decision of the Gujarat government has hit very badly thousands of poor and marginalized communities of Gujarat, especially during the drought year.

Post-advisory, Govt of India appears reluctant to ban e-cigarettes, "harmful" to kids

By Rajiv Shah
Is the Government of India dilly-dallying over the issue of banning e-cigarettes, which have been declared by anti-tobacco activists across the world as providing “an entryway to nicotine addiction”, especially among the kids? It would seem so, if the latest developments are any guide.

Poser to Modi: Why is Gujarat not fulfilling Constitutional obligations to minorities?

Counterview Desk
In an open letter, Mujahid Nafees, convener, Minority Coordination Committee (MCC), a Gujarat-based civil rights organization, has accused Prime Minister Narendra Modi on infringing upon MCC activists’ constitutional right to protest. Nafees says, they had no other demands except that the Gujarat government should move towards fulfilling the constitutional obligations towards minorities and international treaties to which India is a signatory.

World Bank needs a new perspective on development, not just a new president

By Maju Varghese*
The resignation of the World Bank President Jim Yong Kim was an unexpected development given the fact that he had three more years to complete his tenure. Resignations at such a high level after bidding for a second term is unusual which prompts people to think what would have led to the act itself.