For the first time since the onset of the COVID-19 pandemic, the share of urban consumers who were pessimistic about the Indian economy declined to below 50%, according to the bi-monthly Reserve Bank of India (RBI) survey. When asked to comment on their current perception of the economy, 48.9% said it has worsened, the lowest share since the pandemic outbreak.
By the end of 2019, due to the worsening economic situation, more than half the urban consumers had opined that the economy had worsened compared to the earlier year. Following the pandemic outbreak, the share of pessimistic consumers continued to surge. It peaked in May 2021 with 80% of them saying that the economy had worsened. While the levels of pessimism have rapidly declined since they are still much higher compared to the pre-pandemic levels.
The RBI survey was conducted across 19 major cities between May 2 and 11, covering 6,089 respondents.
