Warc, 30 April 2014
MUMBAI: Only one third of Indian consumers believe that their local economy is good, but half are optimistic about their economic prospects for the next six months.
According to the latest edition of the Ipsos Economic Pulse of the World study, which surveyed 18,675 people in 25 countries, India remains among the most economically confident countries in the world.
Some 58% people there rated the national economy to be good, putting it in sixth place behind Saudi Arabia (86%), Sweden (80%), Germany (76%), China (69%) and Canada (66%).
While the figure for India was down three points on the previous month's study it was still far above the global average of 38%.
A rather different picture emerged, however, when respondents were asked to rate the economy in their local area. While India was still among the leaders, only 35% felt able to describe their local economy as good, a two point decline from the previous Ipsos release.
Leading the way on this measure was Sweden (60%), followed by Saudi Arabia (57%), Germany (54%), China (51%), Canada (44%) and Australia (36%). The global average was 27%.
Mick Gordon, CEO, Ipsos in India, pointed to higher food costs, growing inflation and signs of a slowdown as reasons for the dip in consumer confidence. But, he told IIFL, this was balanced by optimism about the outcome of the current election.
"Indians are hopeful that the new central government which will come to power with fresh mandate in May will bring in stability, push economic growth and build investor confidence," he said.
According to the latest Ipsos study, Indians were twice as optimistic as the rest of the world, with 50% expecting their local economy to be stronger in six months' time. Only Brazilians, with the FIFA World Cup coming during that period, were more positive (58%).
Data sourced from IIFL; additional content by Warc staff