Indians worry about jobs, but feel better about money thanks to new tax rule, says survey
Thanks to India’s new tax regime, which has improved take-home salaries for many taxpayers and salaried professionals, people are starting to feel more confident about their own money.
ADVERTISEMENT
Indian consumers are feeling a little less confident this May, as concerns about the economy and job security grow. According to the latest LSEG-Ipsos Primary Consumer Sentiment Index (PCSI), consumer sentiment dropped by 1.6 percentage points. The mood dip is largely driven by global issues and political developments — especially new trade policies under the Trump administration in the United States, which have led to job cuts and tariff wars. Combined with an overall global economic slowdown, ongoing wars, and India’s own recent military action under Operation Sindoor, there’s a clear sense of unease. The week-long conflict caused early volatility in the stock market, though it stabilised later. All of this has made people more anxious about where the economy is headed and whether jobs will be safe in the months to come.
Despite this gloomy economic outlook, there’s a positive shift when it comes to personal finances and spending. Thanks to India’s new tax regime, which has improved take-home salaries for many taxpayers and salaried professionals, people are starting to feel more confident about their own money. The increase in disposable income, along with moderate salary hikes from corporate India, has helped consumers feel more at ease about household spending, saving, and even investing in big-ticket items. While broader economic indicators are shaky, these changes are giving families some much-needed breathing room — and it’s showing in how they spend and save.
India’s consumer confidence score may have taken a small hit this month, but it still remains strong compared to other countries. Out of 30 markets tracked, India ranks third in the world with a National Index Score of 56.2, behind only Malaysia (59.5) and Indonesia (59.1). Other countries with scores above 50 include Sweden, Mexico, Singapore, Ireland, South Africa, Spain, and the US. On the flip side, countries like Türkiye, Japan, and Hungary have the weakest consumer confidence, with scores well below 40. In fact, 15 countries saw significant drops in sentiment this month, while only six — most notably Malaysia — saw clear improvements over the past year.
The breakdown of India’s consumer sentiment tells a mixed story. Confidence in the overall economy has dropped the most, with the Economic Expectations sub-index falling by 4.2 percentage points in May. Belief in job stability also took a hit, with the Employment Confidence index slipping by 2.6 points. But when it comes to personal money matters, things are looking up. The Current Personal Financial Conditions sub-index inched up by 0.1 percentage points, and the Investment Climate sub-index, which tracks consumer willingness to save and spend on big purchases, rose by 0.4 points.
Amit Adarkar, CEO of Ipsos India, noted that while India is dealing with the ripple effects of global challenges, including American trade policies and inflationary pressure from global conflicts, Indian consumers are showing remarkable resilience. He pointed out the paradox of the current moment: widespread layoffs and corporate restructuring on one hand, but rising personal incomes and improved savings for many on the other. He also highlighted the stabilising effect of recent salary increments and the new tax regime, which has helped boost confidence around spending. If the upcoming monsoon season brings a good harvest, it could further lift rural demand and ease food inflation, giving the economy a fresh push.
This latest data is part of a monthly global study conducted by Ipsos, covering over 21,000 adults across 30 countries. In India, around 2,200 people were surveyed — most in person. The numbers offer a snapshot of how people are feeling about the economy, their jobs, and their own money. And while the world may be facing turbulent times, the Indian consumer, for now, seems to be finding ways to stay cautiously optimistic.
