Middle and lower income families will spend 43 per cent less this festive season than last year due to inflated prices of daily food items, coupled with high education cost and grim job market scenario, says an Assocham survey.
The poll was conducted in October in major cities like Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Pune, Chandigarh and Dehradun, among others.
It highlights the spending pattern of 1,650 respondents from diverse sectors like automobile, biotechnology, BFSI (banking, financial services and insurance), energy, fast moving consumer goods (FMCG), information technology (IT), pharmaceutical, real estate etc.
Over 67% of Delhiites from the middle and lower income group families said the steep rise in the prices of daily food items, costly education, less job opportunities and salary packages shrinking over the last year will make their festive seasons dull this year.
Delhi ranks first in curtailing festive expenses, followed by Ahmedabad, Mumbai, Chandigarh, Kolkata and Chennai, respectively.
“Moreover, the rural demand has gone down by 48 per cent this year as compared to 2014 due to monsoon deficit, less employment avenues and low income,” Assocham Secretary General D S Rawat said.
High inflation and an unstable economy may pull the consumer back from spending big during the festive season, the survey pointed out.
Last year, middle and lower middle income families spent nearly half of their salary on Diwali for shopping, sweets, gifting etc.
“This year, majority of middle and lower families in the country will be forced to slash their festive spend by 43 per cent this festive season than the last year mainly because of persistently rising prices of food items. They have slashed their festive budget to meet first their monthly expenses,” Rawat said.
