'Most Indians in favour of cost cutting to counter price rise'
New Delhi: Majority of the Indians feel the need to tighten their purses and not spend on non-essential items to survive price rise which may worsen due to deficit monsoon this year, a survey has said.
A survey by market research company Ipsos has revealed that 82 percent of Indians foresee higher inflation due to less than adequate monsoon this year.
According to the study, 47 percent of the respondents said they would postpone their holiday plans to manage their expenses. Around 35 percent said they would defer spending on big-ticket items.
Further, 43 percent of those surveyed would be using public transport to save fuel cost, 33 percent would spend less on eating out and 31 percent would not buy branded clothes.
"With monsoon being scanty this year and inflation continuing to rear its head, consumers are feeling the pinch of rise in prices," Ipsos India Marketing Communication Head Biswarup Banerjee said.
He, however, added that the mood among people is of cautious optimism on account of widespread rains in some parts of the country recently.
In terms of measures needed to curb inflation, the report said 53 percent of the respondents felt that the government should reduce import duties and 35 percent wanted the establishment to import certain essential food items. Around 30 percent want the exports of items in short supply to be banned.
"There were serious worries that the weak monsoon will undermine significant driver of the economy, but the improving rains will provide some relief to the country battling high inflation, declining growth and threat of a credit rating cut to junk status," Banerjee said.
"We still need to wait and lookout for the September rains to get a clearer picture, but the scary scenario is clearly gone providing a little breather to beleaguered government," he added.
The study conducted between August 13-16 polled 400 men and women around Delhi, Mumbai, Kolkata and Chennai.
In another trend, the survey said 43 percent of the Indians felt that P Chidambaram is a good choice as Finance Minister for the country. A high number of people in Delhi, Kolkata and Mumbai backed him while a majority in Chennai (69 percent) disagreed, the survey added.
Moreover, the survey said that 45 percent people believed that Chidmabaram would fail to tame inflation and infuse confidence among investors, while 38 percent said that he would be successful in curbing inflation.
Among the cities, respondents from Delhi and Mumbai were more optimistic about Chidamabaram's ability to control rising prices.