Consumer Confidence Survey
The Consumer Confidence Survey (CCS) is conducted in India by the Reserve Bank of India. Â It is conducted once in 2 months by the central bank, to measure the consumerâ€™s optimism or pessimism regarding their financial situation.
Key Points for UPSC Prelims
- The Consumer Confidence Survey measures the perception of the consumers for the previous year and their future expectations.
- The main parameters under measurement under the survey are the overall economic situation of the country, Price Level, Income, Spending, and Employment.
- The Reserve Bank conducts the survey in 13 cities in India namely- Delhi, Bengaluru, Chennai, Mumbai, Hyderabad, Lucknow, Kolkata, Thiruvananthapuram, Ahmedabad, Bhopal, Guwahati, Jaipur, and Patna.
Consumer Confidence Survey November 2020 Round
Due to the ongoing COVID pandemic, the CCS for the month of November 2020 has been conducted by telephonic conversation and virtual means, by the Reserve Bank. However, field interviews were conducted wherever it was possible.
The interviews were conducted in the 13 major cities. The perceptions of consumers were taken from the 5,319 households across these 13 cities on overall price situation, income, employment, spending, and economic condition.
Highlights of November 2020 CCS
- As per the November 2020 CCS, consumer confidence has been low in the month as compared to the previous year. However, it has shown improvement as compared to the previous round.
- This weak confidence is due to the consumers’ sentiments on the parameters. Households are optimistic about the situation next year.
- The consumers have highlighted greater overall and essential spending; income has also decreased.
Recently, RBI has kept all the policy rates unchanged in the 6th Bi-monthly Monetary Policy review. RBI has also expanded Targeted Long-Term Repo Operations to cover stressed sectors in synergy with Emergency Credit Line Guarantee Scheme (ECLGS). Real-Time Gross Settlement (RTGS) facility will become operational on a 24×7 basis from December 14. RTGS is a fund transfer system in which money transferred in real-time.