Mumbai: India is ranked fourth in the MasterCard Consumer Confidence Index, which is topped by Japan and Hong Kong, according to a report by the global real-time payment processing firm.
India ranked fourth on the MasterCard Consumer Confidence Index as a market whose consumer confidence is less affected by changes in its merchandise exports, while Japan and Hong Kong topped the list.
"India is a less export-oriented economy and has a large domestic market implying that there are other important domestic determinants of consumer confidence, and as such consumer confidence is not as easily eroded by a decline in their exports," the report said.
The report also noted that India's consumer confidence regarding employment and regular income is more resilient to changes in merchandise export growth.
"China and India are found to be at roughly the midpoint (neutral) between very vulnerable and very resilient in their consumer confidence. The results may seem counterintuitive as China is so much more export oriented than India.
"However, both China and India have very large domestic markets, and their merchandise exports as a percentage of GDP are not that different-- 26.1 percent in China and 18.7 percent in India (though China's GDP is more than four times larger)," it noted.
"Thus, consumer confidence in both markets is affected by export performance only to a limited degree. Their large domestic markets suggest that there are other important domestic determinants of consumer confidence, and it is not easily eroded by a decline in their exports," it added.
The report also found Hong Kong, Indonesia, Thailand, Philippines, India and China to be well positioned with the strongest potential to leverage private domestic consumption to support economic growth.