Income had dropped because of the Covid pandemic
The second wave of the COVID-19 pandemic has led to an increase in the level of uncertainty for several households in India. The lockdown imposed across the country in April and May that led to job losses, continually rising costs of fuel and inflation have all resulted in a negative impact on people’s incomes and spending.
LocalCircles, a community engagement forum, conducted a ‘Mood of the Consumer 2021’ survey to determine how the common people felt about the uncertainty and its impacts on household savings.
The survey was conducted online with 38,632 participants, out of which 35% were women. The data was collected from 382 districts including rural areas.
The survey shows that 47% of the respondents were expecting the household budget planning uncertainty to last for 6 to 12 months. 79% believe that their earning will decline this fiscal year, compared to last year while 49% think the same about their savings.
The economic impact of the pandemic on the hard-hit working class can not be ignored. The drop in income and erosion in savings has led to discrepancies for many families across the country and the majority of them do not expect the situation to get better anytime soon.