The Indian economy has staged a spectacular recovery, but the Indian consumer is still battling the blues. A Nielsen Consumer Confidence Survey in the fourth quarter of 2009 reveals that confidence of Indians remains shaken by the slowdown. On a host of parameters, Indians are less optimistic about the future compared to the previous survey in the third quarter of 2009.
"They are still worried about the time it will take for things to get better. Until consumers are reassured that recovery is going to accelerate and they can finally call economic slowdown a thing of the past, they are going to be cautious," says Vatsala Pant, Director, Client Solutions, Nielsen. Interestingly, the Indian consumer's response is in contrast to the global trend.
The Nielsen survey shows that globally consumers have become more optimistic about their countries emerging stronger from the recession. Says Pant: "In the third quarter of 2009, Indian consumers had started believing that the worst was over, but runaway food prices and high grocery bills have now added to their worries." And with inflation rising steadily, it appears unlikely that there will be immediate respite for the Indian consumer.
THE KEY FINDINGS