Indian buyers more confident with personal finances than other emerging economies: Credit Suisse

A study conducted by Credit Suisse Research Institute states that, after Brazilian consumers, Indian buyers are more confident with their personal finances than consumers residing in other emerging economies. Though Indian consumers exhibit strong tendency to save money, they are are liberal when it comes to spending on education, the Credit Suisse study pointed out.

"India's high rate of spending on education reflects a very positive long term macro trend for the economy," said Jatin Chawla, vice-president - research, Credit Suisse.

"The confidence of Indian consumers, though down compared to last year, is an encouraging sign for investors," Mr Chawla said.

Education accounts for a high share of Indian spending, underpinning a long term bullish macro story for India. About 32% of children participate in education outside of typical schooling vis-a-vis 23% last year. Adult participation in extra courses has risen from 3% to 12%, the CS note said. Lower ticket spending (for clothing, cosmetics, beverages etc) is also buoyant in the country.

""70% of Indians say they have no computers in the home. Only 19% of respondents register having access to the internet. If we begin to see a shift away from spending on essential items, this should be one of the areas to benefit,"" the note said.

The survey registers the highest bank account penetration and the fewest number of people claiming they have no extra money for saving. The life insurance industry (via tax incentives) and real assets such as gold and property are the main non-cash homes for the rupee.