75% of Indians optimistic about future of economy

BANGALORE: Nearly 75% of Indians were optimistic about the future of the economy and 60% wanted to maintain or increase discretionary spending, a survey by global management consultancy The Boston Consulting Group (BCG) said.

Infact, the tendency to trade up was high in developing economies with China at 38%, India at 34% followed by Brazil (26%) and Russia (22%). This was far higher than mature markets such as US at 17% and the European Union at 15%, BCG’s Winning Indian Consumers in 2011 study said.

Indians were keen on trading up for better health or a better brand name although luxuries such as jewellery and eating remained exceptions.

"A de-averaged view indicates that the metros and the middle income groups are driving these downbeat spend intentions. Inflation which impacts daily decisions of consumers is shaping the overall perception of the economy and their attitude towards spending," Abheek Singhi, partner and director in BCG's Mumbai office, said in a statement.

Yet despite strong macroeconomic growth 43 % of Indians surveyed, driven by sustained inflationary pressure, feel personally impacted by what they perceive as the economic downturn, the study added.