India's Consumer Confidence Surges in January, Tops Global Sentiment Index

In a significant upswing, India witnessed a remarkable surge in consumer confidence in January, marking positive sentiments in job security, economic conditions, current financial standings, and investment opportunities, according to the Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI).

Surpassing 29 global markets surveyed, India secured the top spot with a national index score of 66.5 percentage points. The PCSI, comprised of sub-indices like personal financial conditions, investment, economic expectations, and jobs, showcased positive trends across all categories.

Sub-indices for personal financial conditions, investment, economic expectations, and jobs witnessed increases of 2.0, 2.5, 2.5, and 3.7 percentage points, respectively.

Consumer Sentiment Rebounds in Job Opportunities and Spending

Indian consumers exhibited a substantial rebound in sentiment, particularly in job opportunities and spending, indicating a noteworthy uptick in employment and optimistic spending patterns. Amit Adarkar, CEO of Ipsos India, highlighted the positive outlook, stating, "There is a marked upturn in consumer sentiment in the new year. Sentiment around jobs has seen a major rebound, with hiring looking up in recent times. Consumers are also bullish about spending, and there is positive sentiment seen for the economy."

India's Leading Global Consumer Sentiment

With the momentum continuing post the festival season, India emerged as the global leader in consumer sentiment. The Ipsos PCSI, gauging consumer attitudes toward the local economy, personal finances, savings, and confidence in significant investments, showcased India's National Index score of 66.5, outpacing Indonesia.

Other countries exceeding the 50-point mark in the National Index included Thailand, Singapore, Brazil, Mexico, Great Britain, the Netherlands, the U.S., Poland, Belgium, Malaysia, Sweden, and Australia.

Hopeful Outlook for India's Growth Trajectory

Expressing optimism about India's growth trajectory, Adarkar stated, "India is on a growth path, and hopefully, the upcoming budget will provide further impetus to the growth agenda. For now, inflation around essential commodities (esp. food items) is in check, providing room for discretionary spends for urban Indians."

Global Consumer Sentiment Landscape

The insights, derived from interviews with over 21,200 adults across 29 surveyed markets, position India at the forefront of positive consumer sentiment globally.

Reasons for the Upbeat Mood:

Several factors contribute to the surge in Indian consumer confidence:

• Robust job market: A growing economy creates more employment opportunities, leading to increased income and financial security.

• Festive season boost: The recent holiday season likely left consumers feeling optimistic and encouraged about spending.

• Controlled inflation: Stable prices, especially for essential goods, leave more room for discretionary spending and boost overall economic health.

• Government efforts: Positive policy initiatives and economic reforms can enhance consumer confidence in the long term.