New Delhi, Oct 9: The Reserve Bank of India has recently conducted a series of surveys which revealed that perceptions of people economic situation of the country remained in the pessimistic zone for four successive quarters.
These surveys are consistent with the RBI’s position in its monetary policy review on October 4, which scaled down India’s growth forecast from 7.3% to 6.7% for the 2017-’18 financial year.
The Central bank’s Consumer Confidence Survey, released on October 4, showed that 34.6% of the people believe that the general economic situation had “improved” as of September 2017, down from 44.6% in September 2016. While around 40.7% said the economic situation had worsened in September 2017, against 25.3% in the same period last year.
The response for “one year ahead expectation” shows a decline to 50.8 per cent on the issue of economy “will improve” down from 66.3 per cent in December last year.
“The Current Situation Index (CSI) — a sub-index of the RBI’s consumer confidence survey that measures overall consumer sentiments toward the present economic situation — slipped further into the pessimistic zone, reflecting deterioration in sentiments on the employment scenario, the price level and income,” the RBI said, The Indian Express reported.
The Survey was carried out in six metros including Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi and attained 5,100 responses on household perceptions and expectations on the current economic situation, the employment scenario, the overall price situation, their income and spending.
This comes amidst intense criticism in the country after India’s GDP growth tumbled to 5.7% in the first quarter of 2017 which ended in June due to note ban and implementation of the goods and services tax (GST).