The consumer spending sentiment increases for the majority of Indian households, but the investing sentiment remains low.
78 percent of people who have been surveyed have said that they won’t invest in 2023.
The survey
The survey findings were published in the India Consumer Sentiment Index, which is a monthly analysis of consumer perception compiled by Axis My India.
It covered 10,019 people across the country, including 70 percent from the rural areas and 30 percent from urban areas.
It further found that only 16 percent said they will invest their money this year.
Why the hesitation?
This comes in the backdrop of volatility in the equity market and the rising interest rate scenario in the country, due to global fears of inflation and recession.
5 percent of people are unsure about whether they want to enter the investing market this year or not.
Bigger priorities
Most Indians have put child education at the top in terms of priorities with 34 percent saving their money for it.
Saving for marriage, on the other hand, is the top priority for 14 percent, followed by buying a house and creating an emergency fund for 8 percent of those surveyed.
Then there is the sizable 27 percent who said that they have no financial goals for the new year.
Financial assets
About 40 percent of those surveyed said they would invest in financial assets like mutual funds, insurance, stock markets and gold.
16 percent would still like to stick to real estate, and 30 percent were unsure.
An interesting thing to note is that while the net score for overall consumer sentiments has gone up one point- from 7 to 8 this month- the idea to save more still resonates for about 30 percent of the people this year.
This, even as 9 percent said they want to inculcate good financial habits as a new year resolution for 2023.
