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Resource centre on India's rural distress
 
 

Consumer sentiments improve but still too low - Mahesh Vyas

Centre for Monitoring Indian Economy

Consumer sentiments improved in January 2023. CMIE's Index of Consumer Sentiments (ICS) reached 83.9, which is the highest since sentiments were hit severely by the Covid-19 induced lockdowns. The ICS, however, continues to remain lower than its pre-pandemic level. The ICS was at 105.3 in February 2020. 

The recovery in consumer sentiments from the pandemic has been the slowest among all economic indicators. While most production indicators recovered rapidly from the pandemic shock, household well-being in general and their perceptions regarding their own future have still not recovered fully. The recovery is very slow and still incomplete. The Reserve Bank of India’s (RBI) consumer confidence survey suggests the recovery has been very slow but seems complete by January 2023.

CMIE’s consumer sentiments indices are based on responses from urban and rural regions of India. The monthly indices are typically based on responses from about 44,000 households, of which, about 28,500 are from urban India and the remaining 15,500 from rural India. The RBI survey is based on responses from about 6,000 respondents from 19 cities.

CMIE’s Consumer Pyramids Household Survey shows that the consumer sentiments index is still a substantial 20 per cent lower than it was in February 2020. And, the deficit in urban areas is a bit worse, at 23 per cent, than in rural areas. 

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