Read the below article in newspaper and felt it perfectly
explains the current situation in India and metros in particular where the
savings / surplus money post expenses has reduced significantly. While the
issue of increased consumerism was the cause till sometime back, now the
increase in inflation year on year and consistently remaining high is causing
the problem.
Read more at: http://www.moneycontrol.com/news/business/inflation-eroding-savingsindiansmetros-survey_991462.html
Many middle income families are trying hard to
maintain the consumption levels through opting for value buying (buying equal
product at lesser costs), cutting costs where possible (reducing eating out,
going out for movies, postponing expenses etc.). And similarly, many are also
considering switching jobs to increase pay.
While, another survey suggests that average
increment in 2014 can be expected to be around 11%, but after factoring in
inflation, the rise in India is expected to be 2%. On companies side, the high
inflation is putting pressure in terms of high input costs, slowing economy and
coupled with demands for higher salary hikes.
These impacts the standards of living, lesser
savings, reduction in net worth. Reports say that the household savings rates
have dropped by a staggering 40% in last 3 years.
Scary state to be in currently and scarier, when
you think of the future!!
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