India's Consumer Sentiment Rises 1.4% Amid Festive Cheer and GST Reforms

The festive season, coupled with government-led GST reforms designed to reduce the cost of living, seems to have enabled more household savings and increased capacity for discretionary spending.

"These factors have collectively led to a positive movement in India’s National Index score, reflecting broader optimism around jobs, personal finances, investments and the economy," Ipsos, a market research firm, said in its report.

According to the report, regionally, sentiment was largely positive across the Asia-Pacific, and Indonesia saw the highest gain, with a rise of 6.5 percentage points.

Thailand followed with an increase of 3.6 points, South Korea with 2.6 points, Malaysia with 2.1 points, and India with 1.4 points.

“From late September through October, India has been in a celebratory mood, with a host of festivals, creating a feel-good atmosphere across the country. The festive season seems to have spurred consumer spending, reflecting the spirit of celebration," said Suresh Ramalingam, CEO, Ipsos India.

The festive fervour, combined with the government’s recent GST reforms aimed at reducing the cost of living and enhancing household savings, appears to have provided a further boost to consumer sentiment, he added.

In contrast, Australia and Japan experienced declines in consumer sentiment, falling by 2.1 and 2.0 percentage points, respectively.

According to the report, in Latin America, the picture was mixed.

"Argentina showed the largest drop in sentiment globally, with a decline of 3.5 percentage points, followed by Colombia at -3.1 points. Brazil, however, registered a significant increase of 2.2 points," the report said.

Among the 30 countries surveyed, Indonesia holds the highest National Index score at 58.8, reflecting a strong monthly gain of 6.5 percentage points in consumer sentiment.

India ranks second with a national index score of 58.4, marking an increase of 1.4 points over the previous month.

For the third consecutive month, no country has reached or surpassed the 60-point mark, highlighting a general moderation in global consumer sentiment.

- IANS