Shocking... 73% Indian home in debt trap !
Around 73 per cent households in the country are facing the heat on the economic front as their expenses have increased at a greater pace than their income in the last 12 months, according to a recent survey by Local Circles.
New Delhi, June 11: Around 73 per cent households in the country are facing the heat on the economic front as their expenses have increased at a greater pace than their income in the last 12 months, according to a recent survey by Local Circles.
Around 40 per cent of the people surveyed across the country were in distress as their earnings were either flat or declined while their expenses continued to rise.
Another 33 per cent said that although their income increased, it was not in proportion to the rise in expenses, according to the "Mood of the Consumer" survey by the social networking platform dedicated to citizen engagement.
On being asked about their expectations of change in their annual earnings in the next 12 months, the survey showed that around 14 per cent felt it would increase by over 15 per cent, and 30 per cent said it will increase by up to 15 per cent.
However, 38 per cent of people surveyed thought it will remain the same and 18 per cent thought it might decrease.
The survey was carried out with over 20,000 people across the country, Local Circles said.
It, however, also said that the consumer spending in India is likely to increase in the June-August period.
"For many, the months of April and May mark the time for salary increments and bonuses which they plan to use to make those pending purchases for the family. This year, the month of May also gave us the results of the Lok Sabha elections 2019, where citizens handed over another session to PM Modi through a huge mandate.
"Both these things together, have led to positive sentiments amongst consumers as well as the market, and the consumer spending is expected to be robust in the next few months," said the report.
The survey showed 51 per cent consumers did not want to purchase anything with a value of more than Rs 25,000, while 30 per cent of consumers were willing to make the purchases and 19 per cent were unsure.
"Gadgets like mobiles and laptops have been popular purchase items over the past few years and consumers have shown a tendency to upgrade them often, said the survey. With disposable incomes increasing, travel has also emerged as an area where more and more consumers have been spending.
"And with the summer vacations going on, many consumers have plans to take their kids on holidays in India and abroad," it said.
(Image Courtesy: Google Image)