Good news for the economy: After almost a year and half of disruptions in Indian economy due to demonetisation and the Goods and Services Tax (GST), the consumer sentiment is up in the month of July on all fronts from jobs, investments, health of the economy to personal finance, a monthly survey has showed. In July, the consumer sentiment surged by 2.3 points over last month, with the maximum rise of 3.6 points witnessed in employment confidence for jobs, a survey conducted by Ipsos-Thomson Reuters said.
The consumer sentiment is up in the wake of India becoming the sixth largest country in the world in terms of GDP and stability in the new indirect tax regime. The consumer is confident on all fronts whether it is to do with jobs, the performance of the economy, investment climate/ investment in big-ticket items and personal savings, the survey said. The economic expectation of the consumer is up 2.6 points, the personal financial condition is up 0.7 percentage points, and investment climate confidence is up 1.6 points.
“Boost in consumer sentiment bodes well for the economy, which means that the consumer is likely to loosen his purse strings for spending and that there is liquidity in the market… There is a form of stability in the economy, now that the post-GST disruption has worn off and the Indian economy is placed in the sixth place, having overtaken France, as per the latest World Bank Report,” said Parijat Chakraborty, Executive Director, Ipsos Public Affairs.
India has become sixth largest economy after beating France in terms of GDP this year. Moreover, the country is expected to leave the United Kingdom behind by next year if the current growth trajectory continues. Meanwhile, a number of changes introduced in the last one year have helped in resolving teething troubles faced by businesses. In the financial year 2018-19, the economy is expected to register 7.3%-7.4% growth.