Why are Indian consumers and companies so confident?
Even in the depths of a downturn, Indian consumers and companies are surprisingly confident, putting the country on top. Seven months ago … consumer confidence in India had fallen 11 points to 122, the lowest in the last five rounds of the Nielsen Global Consumer Confidence Survey.
Since then, Lehman Brothers, the 158-year-old investment bank, has collapsed and the Detroit carmakers have been gasping for money. Still worse, in end-November, 10 gun-and-grenade-totting terrorists killed 192 people across Mumbai, the nation’s financial capital.
Even as all these events sink in, India has topped the latest round of the Nielsen survey with 114 points, a massive 30 points above the global average of 84. (via Consumers and companies are confident).
Strange. In fact, very strange.
What gives Indian the confidence that things will improve? Year after year, such global surveys routinely show anxiety, unease, dread in Europe and USA. This sense of unease should be absent considering the prosperity levels, the best health-care systems, a welfare state, guaranteed unemployment benefits, their technology, their currency and their democracy.
The Indians and Chinese routinely are more optimistic – which should not happen considering the low income levels. Fancy theory apart, to my mind, it is the ‘sword fatigue’ in response to constant exposure by Western Governments (to which they are exposed) which causes this low optimism.
The only thing that worries Indians was the well being of their parents.