India Emerges as World’s Second-Most Optimistic Consumer Market: Nuvama Report

One country that is on the rise in terms of optimism in consumer markets is India. There is a substantial rise in the intention of spending within houses in India. What is quite prominent is that the optimism shown in terms of spending is above many other major countries. According to the latest report from Nuvma, close to 60% of the population in India are likely to increase their spending within their houses in the next six months.

According to the report, broadly speaking, driven by strong economic growth, easing inflation, a pick-up in industrial activity, and income growth, Indian consumers are far ahead of major countries in terms of optimism regarding household spending. The level of net optimism is 27%, compared to the global average of 12% below zero. China leads the way, with consumers confident of increasing household spending. India ranks second.

Spending intentions are still there for necessary categories, such as cars, mobile phones, and home rentals, and for the future, like. But the intentions for more routine categories, such as packaged snacks and soft drinks, are relatively lower. This indicates that consumers now think before they spend.

Vehicles lead the way for Indian consumers to spend the most. 70% of Indian consumers plan to spend the most on new cars, followed by 63% on smartphones and mobile plans. One-third of Indian consumers plan to spend more overall, with non-essential purchases emerging as the primary driver. This level of non-essential spending intentions is the highest among all recorded markets.

About 61% of Indian consumers believe that better days are ahead. However, 34% expect widespread unemployment or a recession. 17% say tensions and other political events in several countries could slow India's growth rate, the second lowest after China. In contrast, 60% of respondents in the UK, France, and Germany expect growth to decline.