Indian confidence bounces back

The latest Nielsen study, conducted in the 2nd Quarter of 2009 saw India score 112 points (up from previous score of 99 in March 2009). India still trails Indonesia on 113 but the score shows that confidence is returning.

Global average score is 82, up 5 points; the increase is attributed to a boost in BRIC economy confidence.

Saying goodbye to recession

A survey-topping 66% of Indians believe they will be out of recession in 12 months. Showing that a sizable proportion of Indian's are experiencing no change in lifestyle despite a slow down, 38% believe that India isn't even in recession at the current time. This figure reminds the West that India is still a growing economy.

Loosening the purse strings

Improved confidence is also reflected in the perception of Indian consumers towards job prospects, personal finances, and their willingness to spend; all three are up on March.

68% of Indian's are optimistic about job prospects over the next 12 months. 74% of consumers register optimism over the state of their personal finances and 43% conclude that now is a good time to purchase discretionary items.

Commenting for Nielsen, Vatsala Pant says, "A stable economy has refurbished Indian outlook on the job market and their personal finances. Indians are relaxing their hold on money and are spending more than they were willing to spend in the last eight months".

How they are likely to spend

Home improvements and decorating appear set to be growth markets, 34% - 5th highest global score - are set to spend on upgrading the home. 33% are likely to spend on fashion and new technology shows strongly with 32% - 6th highest - looking at new electronic products. Leisure appears as though it is set to gain a boost with holidays (30%) and home entertainment (22%) registering highly.

Attitudes to savings, debt and speculating

66% of Indians actively save and 42% are paying off debt with spare cash. Scoring third highest globally, and indicating confidence in the Sensex, 40% of respondents plan to invest in stocks and shares.

Image source - BusinessWeek