Indians losing faith in the economy: US study

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September 11, 2012

According to a Pew Research Center study, only 45 percent of Indians believe the economy will improve. Despite this, two out of every three Indians said they were pleased with their personal financial situation.

September 11, 2012

According to a Pew Research Center study, only 45 percent of Indians believe the economy will improve. Despite this, two out of every three Indians said they were pleased with their personal financial situation.

The Indian public's confidence in their economy and government plunged in the last year, according to a US study published as the country battles galloping inflation and slowing growth.

"In a world where the Americans, the Europeans and even the Chinese have reason to worry about their economies, it is the Indians who have lost the greatest faith in their economic fortunes," said the Pew Research Center study published on Monday.

Just 49 percent of the 4,018 Indians questioned by the center said current economic conditions were good, reflecting a 7.0-percentage-point decline since 2011 when 56 percent of those surveyed said the economy was doing well.

Only 45 percent of Indians believe that the economy will improve in the next 12 months and only 38 percent said the country was heading in the right direction, down from 51 percent last year.

India's once-booming economy grew by just 5.5 percent between April to June — its slowest expansion in three years. Inflation remains stubbornly high at nearly seven percent.

A spate of political corruption scandals have also soured the national mood, with the parliament currently deadlocked due to protests over a new scandal involving the allocation of coal mining licenses.

Despite the gloom, Indians are still more positive about their prospects than Europeans or Americans where only 30 percent and 29 percent respectively say they are satisfied with the direction of their countries.

Nearly two out of every three Indians surveyed said they were pleased with their personal financial situation, in contrast to their feelings about the national economy.


Courtesy: Daily News