56% believe that India will be a developed economy in 25 Years– as per Axis My India August CSI Survey
2ndAugust 2022: Axis My India, a leading consumer data intelligence company, released its latest findings of the India Consumer Sentiment Index (CSI), a monthly analysis of consumer perception on a wide range of issues. At India’s 75th year of Independence, the Consumer Sentiment Survey (CSI) explored the citizen’s view across key facets of the growing Indian economy. From unravelling expectations from the government to improved life and livelihood, the findings also explored shift in mind-set with regards to social, environmental, and national issues.
The August report reveals that consumption has increased across 3 out of 5 relevant sub-indices i.e. overall household products, essential products, health products and media consumption. However, sentiment related to mobility has reduced by 1% from last month and sentiments related to discretionary products remains the same as last month. This month’s survey also highlights that though 44% of the respondents acknowledge improvement in living standards in the last few years, 34% are still concerned of inflation. Overall, sentiments direct towards an optimistic future of India in the next 25 years.
Coinciding with the 1-year anniversary of Consumer Sentiment Index, the report also shares a trend of how the consumer sentiment has fluctuated across the year, from coming out of the effect of the delta variant to the rise of sentiment during the festive season last year, the dip again during the Omicron variant scare and now the concern because of rising inflation.
The August net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +9 which remained same as last month.
The sentiment analysis delves into five relevant sub-indices – Overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits & mobility trends.
The survey was carried out via Computer-Aided Telephonic Interviews with a sample size of 10205 people across 34 states and UTs. 71% belonged to rural India, while 29% belonged to urban counterparts. In terms of regional spread, 24% belong to the Northern parts while 25% belong to the Eastern parts of India. Moreover 31% and 21% belonged to Western and Southern parts of India respectively. 64% of the respondents were male, while 36% were female. In terms of the two majority sample groups, 35% reflect the age group of 36YO to 50YO, while 29% reflect the age group of 26YO to 35YO.
Commenting on the CSI report, Pradeep Gupta, Chairman & MD, Axis My India, said “This survey has brought to fore interesting insights into the minds and behaviour of the Indian consumer. A sense of resilience, a belief in home-grown brands and an optimistic outlook towards the future is noteworthy. While inflation and lack of employment opportunities continues to be of concern, a major chunk believe that their living standards have improved in the last few years and as we come close to the 75th year of independence, Indian citizens are certain that India will be able to fight against all odds and most likely become a developed nation when it touches 100 years.
- Overall household spending has increased for 61% of families which reflects a 2% increase from the last month. The net score which was at +50 last month has increased by +2 to +52 this month.
- Spends on essentials like personal care & household items has increased for 45% of the families which is a 1% increase over last month. The net score which was at +25 last month has improved by +1 to +26 this month
- Spends on non-essential & discretionary products like AC, Car, and Refrigerator continues to remain the same for 88% of families. Spends however has increased for only 6% of families reflecting a net score of 0 same as previous month.
- Consumption of health-related items has increased for 38% of the families, which was 35% in the last month. The health score which has a negative connotation i.e., the lesser the spends on health items the better the sentiments, has a net score value of -24, as compared to -21 last month.
- Consumption of media has increased for 19% of the respondents, an increase by 2% from last month. The overall, net score which was at -3 in the last month is at -1, this month.
- 87% said that they are going out the same for short vacations, malls and restaurants. Increased travel is reflected only among 6% of families, a dip by 1% from last month. The overall mobility net score is at -1.
Consumer Thoughts on 75th Year of Independence:
- Acknowledging India’s progress over the last 75 years, a majority of 56% believe that India will be a developed economy when it touches 100 years.
- Addressing some expectations on the 75th year of Indian independence, the survey discovered that 34% wants the government to combat inflation, while 28% seeks improvement in employment opportunities. Focusing on farmer’s prosperity reflect a third major concern (view of 7%).
- A majority of 44% believe that their living standard has improved in the last few years. More particularly 40% attribute this improvement to the last 8 years.
- Keeping the Govt’s Atma Nirbhar Bharat initiative in mind, the survey dug deeper to understand consumers brand preferences. 92% said that they would prefer Indian brands, while only 6% said they would buy Indian as well as imported brands.
- The CSI – Survey captured consumer’s attitude towards sustainable product choices. 63% said that they are prepared to pay more for environmentally friendly or natural products
- In an attempt to understand India’s journey towards digital payments, the survey found out that only 39% have processed digital/online payment. While a majority of 61% have still not ventured the digital medium for payments. 38% said that advertisement influences their purchase decision.
- The survey further discovered that 73% are more health conscious and are eating more healthy food post the Covid-19 pandemic.
- 44% agree that their kid’s education & learning was severely impacted by online mode of education during the Covid 19 pandemic. While only 25% believed that it had no impact.
- Highlighting a massive improvement in gender equality sentiments, the survey revealed that 96% agree that men & women should share household responsibilities equally. Both the genders share this thought equally (95% in males, 97% in females).