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

Buddhist shrines massively destroyed by Brahmanical rulers in "pre-Islamic" era: Historian DN Jha's survey

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".

RSS' 25,000 Shishu Mandirs 'follow' factory school model of Christian missionaries

By Bhabani Shankar Nayak*
The executive committee of the International Union of Anthropological and Ethnological Sciences (IUAES) recently decided to drop the KISS University in Odisha as the co-host of the World Anthropology Congress-2023. The decision is driven by the argument that KISS University is a factory school.

India must recognise: 4,085 km Himalayan borders are with Tibet, not China

By Tenzin Tsundue, Sandeep Pandey*
There has as been a cancerous wound around India’s Himalayan neck ever since India's humiliating defeat during the Chinese invasion of India in 1962. The recent Galwan Valley massacre has only added salt to the wound. It has come to this because, when China invaded the neighbouring country Tibet in 1950, India was in high romance with the newly-established communist regime under Mao Zedong after a bloody revolution.

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.

Time to give Covid burial, not suspend, World Bank's 'flawed' Doing Business ranking

By Maju Varghese*
On August 27, the World Bank came out with a statement suspending the Doing Business Report. The statement said that a number of irregularities have been reported regarding changes to the data in the Doing Business 2018 and Doing Business 2020 reports, published in October 2017 and 2019. The changes in the data were inconsistent with the Doing Business methodology.

Delhi riots: Cops summoning, grilling, intimidating young to give 'false' evidence

Counterview Desk
More than 440 concerned citizens have supported the statement issued by well-known bureaucrat-turned-human rights activist Harsh Mander ‘We will not be silenced’ which said that the communal riots in Delhi in February 2020 have not been caused by any conspiracy, as alleged by the Delhi Police, but by “hate speech and provocative statements made by a number of political leaders of the ruling party.”

WHO chief ignores India, cites Pak as one of 7 top examples in fight against Covid-19

By Our Representative
In a move that would cause consternation in India’s top policy makers in the Modi government, Dr Tedros Adhanom Ghebreyesus, World Health Organization (WHO) director-general, has singled out Pakistan among seven countries that have set “examples” in investing in a healthier and safer future in order to fight the Covid-19 pandemic.

Agricultural reform? Small farmers will be more vulnerable, corporates to 'fix' price

By Dibyendu Chaudhuri*
Agriculture employs 42% of the total work force whereas it contributes only 16% to the country’s GDP. The average annual growth rate in agriculture has remained static to 2.9% since the last six years. This means that the post-green revolution conventional agriculture has reached its peak. Responsiveness of soil fertility to fertiliser application, an indicator of stagnancy in agriculture, shows declining trend since 1970. The worst sufferer has been the small and marginal farmers who constitute 86% of total farmers.

Tata Mundra: NGOs worry as US court rules World Bank can't be sued for 'damages'

By Kate Fried, Mir Jalal*
On August 24 evening, a federal court ruled that the World Bank Group cannot be sued for any damage caused by its lending, despite last year’s Supreme Court ruling in the same case that these institutions can be sued for their “commercial activity” in the United States.