cmie: Consumer sentiment index for rural India inched up marginally for week ended November 28: CMIE
“This significantly subdued growth in expectations and the fall in perceptions regarding current economic conditions in rural India summarises the farmers’ response to the Prime Minister’s announcement on repeal of farm laws on November 19,” CMIE said in its weekly labour market analysis.
“A good crop and the removal of a law the farmers did not like should have propped up consumer sentiments. But, it did not make any material difference in improving rural consumer sentiments,” CMIE added.
According to the CMIE data, the 0.3% increase in the index of consumer sentiments for rural India is lower than the 1.7% gain in the previous week which ended on November 21, just two days after the PM’s announcement, and much lower than the 6.3% gain made in the earlier week and the 4.3% gain before that.
The urban index of consumer sentiment, however, fell by 4% in the week ended November 28. The rural index of consumer sentiments was performing much better two weeks before the announcement than it did in the two weeks that ended after the announcement, it said.
Even the 1.3% jump in the rural index of consumer expectations is low compared to 3.2% increase in the week ended November 21 or 5-8% growth seen in the first two weeks of the month.
As per CMIE, rural India has expressed pessimism on the current economic conditions in the last two weeks of November with the proportion of households that stated that their incomes were higher than a year ago falling to 8.4% in the week under consideration compared to 13 per cent in the week ended November 21.
Even the proportion of households who considered the current times to be better to buy non-essentials fell from 10% in the week ended November 21 to 7% in the week ended November 28.