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RBI consumer survey shows people’s no-trust in Modi govt

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New Delhi : The Modi government has proved to be a disappointment even to people who had high hopes from it four years ago, reveals a survey conducted by the Reserve Bank of India, tweeted Congress General Secretary Ashok Gehlot.

He was referring to a bi-monthly consumer confidence survey conducted in six metropolitan cities – Delhi, Mumbai, Bengaluru, Chennai, Kolkata, and Hyderabad – in the month of May, collecting 5077 responses. It was aimed at obtaining responses on ‘households’ perceptions and expectations on the general economic situation, the employment scenario, the overall price situation and their own income.

The RBI calls it the Current Situation Index or CSI. It also seeks to assess public mood, by getting data on whether respondents expect the economic situation to be better or worse a year later. “While households remained pessimistic about the current employment situation, their sentiments were marginally better for the future,” RBI noted in the release.


This is called the Future Expectations Index or FEI. It captures data on these indices on a simple 3-point scale – improved, remained the same, or worsened.

The May 2018 survey reveals that the CSI – or perception of current prices, jobs, and the overall economy – has remained in the pessimistic zone since March 2017, while the FEI has followed the same downward trend, though it is yet to dip in the negative zone.

What this means is that while a majority of people still hope that economic growth will pick up in 12 months, there are fewer people feeling that way compared to earlier.  According to the survey, 48% of respondents said that the general economic situation is worse than it was a year ago. 49.5% of respondents said the situation will improve while 27.8% said it will worsen. In comparison, in the June 2014 survey, just a month after the Manmohan Singh led UPA government stepped down, as many as 56.7% of respondents said the situation will get better in a year’s time and only 17.6% said it will worsen.

People’s perceptions about employment prospects and availability have similarly worsened, with 44.1% reporting declining trends in 2018 compared to 30.2% in 2014. 65.1 % felt that things would improve in 2014, while that number has now dropped to 49.5%. Perhaps most strikingly, 63.9% of respondents said in June 2014, that they expected their incomes to increase in the coming year. That optimism has clearly been dashed, with only 50.8% who retain that expectation in 2018.

Gehlot said the writing on the wall is clear. Whether the Modi Government will take it seriously or treat it with its characteristic disdain and arrogance, only time will tell, he added.

The survey was conducted by RBI in six metropolitan cities 48% of respondents said that the economic situation is worse than it was a year ago.

49.5% of respondents said the situation will improve while 27.8% said it will worsen.

In the June 2014 survey as many as 56.7% of respondents had said the situation will get better in a year’s time and only 17.6% said it will worsen.

65.1 % felt that things would improve in 2014, while that number has now dropped to 49.5%. Perhaps most strikingly, 63.9% of respondents said in June 2014, that they expected their incomes to increase in the coming year. That optimism has clearly been dashed, with only 50.8% who retain that expectation in 2018.