Consumer confidence in India rebounded to reach its highest level in the first quarter of 2010, providing the most definitive sign that India is fast recovering from the economic downturn, according to the latest edition of the Nielsen Global Consumer Confidence Index.
"The rising confidence index shows a rebounding faith in economy and hope for a more optimistic future. India is one of the fastest growing markets in the world and the current consumer belief that recession would soon be a thing of the past has filled Indians with confidence," The Nielsen Company's managing director (south Asia), Piyush Mathur said in a statement.
What is still bothering Indians
Job scare and financial concerns are a thing of the recent past for Indians. It has been replaced by a concern for increasing food prices, which has beaten all other concerns and is the biggest concern (17 per cent) for Indians in the first quarter of 2010. In fact India tops all other countries where increasing food prices are concerned, it said.
Almost 42 per cent Indians think that the country is under recession at the moment. Of these 68 per cent Indian one of four consumers believes that the country will be out of recession in the next twelve months, making India the most optimistic country globally who believe that recession will be a thing of the past in a year's time.
With 127 index points, India ranked number one in the recent round of the survey, followed by Indonesia (116) and Norway (115), Nielsen said.
Nielsen's Global Consumer Confidence Index tracks consumer confidence, major concerns and spending intentions among more than 27,000 Internet users in 55 countries. In the latest round of the survey conducted between March 8 and March 26, 2010, consumer confidence in many markets rebounded to pre-recession levels of late 2007 and early 2008.
India retains its number one spot with 91 per cent votes as the most optimistic country where job prospects are concerned. 25 per cent Indians think that job prospects in the country will be 'excellent' and 66 per cent think that it will be 'good' in the next twelve months. With 76 per cent votes, Singapore follows India in its optimism about job prospects.
Indians also emerge the most optimistic about the state of their personal finances in the next twelve months. In the last round of the survey wherein Indians were glum about their personal finances, in the latest round they have emerged the most optimistic with 84 per cent votes. 15 per cent Indians think that personal finances will be 'excellent' and 69 per cent think it will be 'good'.
Nearly 8 per cent Indians think that it is an 'excellent' time to buy the things that they want and need and 44 per cent think that it is a 'good' time to make purchases.
"Indian job market is opening up, which also means that finances are improving with better jobs, and more people now have the power to spend on discretionary items. So it's not a surprise that Indians think that the time is ripe to spend on things they desire," Mathur said.
