Covid-19 impact | Saving income is now top priority for most Indians, says Mastercard Survey

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While covid outbreak had an adverse impact on the economy and the job market, one shift in consumer behaviour could be seen as a blessing in disguise. According to a survey by Mastercard, saving income has emerged as top priority among 65% of Indians in comparison to rest 47% in Asia-Pacafic (APAC).

The age-old values of ‘saving for a rainy day’ could be one of the reasons behind it. According to the survey, 43% Indians will be spending less on non-essential items, 32% will rotate credit and 31% will buy on instalments, even as we see the green shoots of recovery.

Conducted over a period of 8 months, i.e., June 2020-Jan 21, the survey titled ‘Preparing for the post-covid-19 world: India consumer sentiment tracker’, highlights the evolving Indian consumer sentiment along with a specific focus on industries such as retail, travel, and digital payments.

The survey found Indians to be more optimistic in comparison to their APAC counterparts on almost all counts.

The study also shows that during the lockdown, the common concerns around the region were healthcare, livelihood, economy, and children’s education which could impact most respondents’ personal finances. 42% of the respondents said that their personal finances remained same or became better as before the covid impact. Out of the remaining 58%, nearly half the Indian consumers interviewed at this time were certain that their financial status would return to pre-covid- 19 level within six months. In contrast, APAC markets remained pessimistic, with only 29% who felt the same.

“As India undertakes the world’s largest vaccination program to counter Covid-19 and more business places open up, the Indian consumers are optimistic towards the revival of the economy and their lives,” the survey noted.

With a focus on safety, hygiene and convenience, there was a sudden uptake of ordering digitally and paying in a contactless way. Apart from day-to-day items like grocery, which was traditionally an offline purchase, 64% Indians also bought online education solutions and 52% ordered health & wellness products and services. In fact, 58% of Indian respondents intend to increase their usage of contactless payments such as debit and credit cards, prepaid cards, and mobile wallets, which shows their comfort with the digital ecosystem. Not only that, but 81% of Indian respondents believe that contactless payment is a trend here to stay. Also, 2 out of 3 Indians feel secure making online payments which is 10% higher than other regions in APAC.

Another key takeaway is that after a long time of being under lockdown and working from home, the Indian consumers are looking forward to travel. 71% Indian respondents are open to or want to travel domestically for leisure within 2021, which highlights their positive sentiment towards normalcy.