India is in consumer news
Bloomberg News is reporting a troubling downward trend in one of the world’s largest comsumer markets. India.
For years, the Indian consumer market has been a shining light on the horizon for exporters of all kinds.
With a population of over 1.3 billion it is expected to become one of the worlds largest fashion and apparel markets and attracted capital investment from groups like Goldman Sachs Group Inc.
But new figures are dampening any optimism about that giant marketing in the near future.
For a while Indians were the world’s most confident consumers
With a $2 trillion economy it was the fastest-growing big market.
But then last year Prime Minister Narendra Modi took a series of steps that complicated things. including voiding nearly 90% of the currency in circulation. The move accelerated a slowdown that had already begun earlier in the year.
Climbing global oil prices and a tightening Federal Reserve aren’t helping as more disposable income is being diverted away from consumables like fashion.
Kaushik Das, chief economist at Deutsche Bank in Mumbai says “There are a number of uncertainties which are clouding the short-term outlook of the Indian economy,”
Indians fell off the top of Mastercard’s Asia Consumer Confidence Index in the first half of 2017, and a report from the nation’s central bank last week confirmed the bleak outlook.
About 27 percent of Indians surveyed said incomes have fallen, leaving pessimism about Indian consumer spending in the short term.