homeeconomy NewsIndians showing cautious optimism, balancing non discretionary spends: Deloitte

Indians showing cautious optimism, balancing non-discretionary spends: Deloitte

The report, however, also noted that consumers were concerned as prices of everyday purchases were increasing (71 percent).

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By Reuters Mar 27, 2022 11:56:38 AM IST (Published)

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Indians showing cautious optimism, balancing non-discretionary spends: Deloitte
Indian consumers are showing cautious optimism and balancing non-discretionary spending as they are saving more for the future, according to a recent report.

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Indian consumers are prioritising shopping, recreational, and entertainment activities, according to the Deloitte Consumer Tracker report. The Indian consumers surveyed are planning to spend a large share of their wallet on personal care and clothing (14 percent), recreation, entertainment, and leisure travel (14 percent), followed by electronics and home furnishings (11 percent), and restaurants (8 percent), the Deloitte report said.
"The analysis indicates a ray of positivity amongst consumers, who are now cautiously balancing their happiness and spending and saving more for the future," the report noted.
With corporate India returning to "business as usual" and travel restrictions gradually easing, Indians have resumed their business travels, it added. According to the report, about 83 per cent of consumers are likely to travel for business within the next three months.
Expressing positive sentiments, the majority of the consumers have stated that they are optimistic about their financial situations within the next three years as workplaces are opening and COVID-19 cases are decreasing.
Porus Doctor, Partner and Consumer Industry Leader, DTTILLP, said that the first three months of 2022 have been an adventurous roller-coaster ride with Indians witnessing the third wave of COVID-19 (Omicron variant), leading to a surge in prices of everyday items and supply chain disruptions.
"Indian consumers are showing a propensity to save more as the immediate future seems uncertain," Doctor said.
The report, however, also noted that consumers were concerned as prices of everyday purchases were increasing (71 percent). About 87 percent Indian respondents in the age group of 35-54 (working population) are concerned about inflation.
Other highlights from the report:
  • 77 percent of consumers are optimistic that the financial situation will improve within the next three years.
  • 71 percent of consumers are concerned about the increasing prices of essentials.
  • 54 percent of consumers have increased savings for a secure tomorrow.
  • 84 percent of consumers plan to spend on leisure travel in the next four weeks.
  • 80 percent of consumers plan to buy a vehicle in the next six months.
  • Of those purchasing a vehicle, 83 percent plan on buying a new vehicle.
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