86% Indian consumers are worried about repaying loans after moratorium, says a new BCG survey
- With the COVID-19 crisis refusing to blow over, Indian consumer sentiment has turned negative significantly over the three phases of lockdown.
- The biggest worry for consumers seems to be the ability to repay loans after the moratorium period, with more than 86% expressing their concerns about it.
- More than 50% consumers have a negative outlook on future income, while 82% believe that there will be an economic recession due to the coronavirus.
Of the consumers surveyed, 30-40% plan on deferring their loans, while 60-70% plan on taking a new loan in the next six months.
There’s reason for the widespread pessimism – the Indian economy has been sent into a disarray due to the nationwide lockdown which has been extended to 54-days now. Employees across sectors have lost jobs, while more than 136 million jobs are at risk due to the coronavirus lockdown.
The results go on to show how Indian consumers are worried about coronavirus, and how they think the worst is yet to come.
Indian consumers focus on savings, staples and foods, and health services
Throughout the three waves of the BCG survey, Indian consumers reportedly continued focusing on savings, stapes and foods, and health services. Other areas like mobile and internet services, subscription to OTT apps (streaming services) and household care products also continued to feature among the top areas where consumers continued to spend.
Spends on categories like alcohol, vacations and public transport declined
Indian consumers also reduced spending on categories like alcohol and food delivery, while spends on vacations, public transport, restaurants and luxury products continued to decrease.
Digital purchases and payments see significant adoption
The social distancing norms have given a big push to the adoption of mediums like digital purchases and payments. The survey says that there has been an increase of 70% in digital purchase of fresh foods, while digital payments have seen an increase of 20%.
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