73% homes under pressure as expenses outdo incomes: Report
Around 73 per cent households in the country are facing the heat on the economic front as their expenses have increased at a greater pace than their income in the last 12 months, according to a recent survey by Local Circles.
 
Around 40 per cent of the people surveyed across the country were in distress as their earnings were either flat or declined while their expenses continued to rise. 
 
Another 33 per cent said that although their income increased, it was not in proportion to the rise in expenses, according to the "Mood of the Consumer" survey by the social networking platform dedicated to citizen engagement.
 
On being asked about their expectations of change in their annual earnings in the next 12 months, the survey showed that around 14 per cent felt it would increase by over 15 per cent, and 30 per cent said it will increase by up to 15 per cent. 
 
However, 38 per cent of people surveyed thought it will remain the same and 18 per cent thought it might decrease.
 
The survey was carried out with over 20,000 people across the country, Local Circles said. 
 
It, however, also said that the consumer spending in India is likely to increase in the June-August period.
 
"For many, the months of April and May mark the time for salary increments and bonuses which they plan to use to make those pending purchases for the family. This year, the month of May also gave us the results of the Lok Sabha elections 2019, where citizens handed over another session to PM Modi through a huge mandate. 
 
"Both these things together, have led to positive sentiments amongst consumers as well as the market, and the consumer spending is expected to be robust in the next few months," said the report.
 
The survey showed 51 per cent consumers did not want to purchase anything with a value of more than Rs 25,000, while 30 per cent of consumers were willing to make the purchases and 19 per cent were unsure.
 
"Gadgets like mobiles and laptops have been popular purchase items over the past few years and consumers have shown a tendency to upgrade them often, said the survey. With disposable incomes increasing, travel has also emerged as an area where more and more consumers have been spending. 
 
"And with the summer vacations going on, many consumers have plans to take their kids on holidays in India and abroad," it said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Rakesh Modi

    2 months ago

    I myself is Modi, but to tell the truth, In last 5 years, my income has not grown but my expenses has multiplied & cant even think beyond only necessities like food, clothing, shelter & education.... Now what will happen in next 5 years, God only knows....

    Banks can vote against NBCC's Jaypee Infra bid: NCLAT
    The National Company Law Appellate Tribunal (NCLAT) on Monday clarified that the lenders of Jaypee Infratech (JIL) can vote against the NBCC's bid to acquire the insolvent real estate company.
     
    The Delhi-based appellate also directed for the completion of the ongoing voting process, which ends later in the day.
     
    IDBI Bank, the lead banker to JIL had approached NCLAT seeking permission to vote against public sector construction major's bid.
     
    "We have not said don't vote against NBCC," the bench said implying that the lenders could vote against the bid.
     
    The three member bench headed by NCLAT Chairman Justice S.J. Mukhopadhaya has also directed the resolution professional Anuj Jain to report the appellate tribunal about the outcome of the voting.
     
    The bench further clarified that the votes of the absentees would not be counted in the total voting percentage.
     
    IDBI Bank is against NBCC's resolution plan on the grounds of the bid being conditional.
     
    The NBCC's bid seeks the cancellation of an estimated income tax liability of Rs 33,000 crore due over a period of 30 years under the concession agreement for the transfer of land from the Yamuna Expressway Industrial Development Authority (YEIDA) to Jaypee Infratech Limited (JIL). 
     
    The PSU also sought relief from taking consent of the YEIDA for any business transfer between JIL and Yamuna Expressway SPV for transfer of assets as well as land parcels from JIL to the land bank "special purpose vehicle" (SPV). 
     
    The CoC had asked the state-run construction major to clarify on the conditions and also sought their removal from the plan. The NBCC made some minor changes to its bid, including reducing the quantity of unsold inventory it plans to give out to the lenders, but did not do away with the contentious clauses related to income tax liability and taking approval of YEIDA for any business transfer between YEIDA and JIL.
     
    Following this, although the CoC put the bid to vote, IDBI Bank eventually approached the National Company Law Appellate Tribunal (NCLAT) seeking permission to reject the bid.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
      
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    RBI's revised NPA circular credit positive: Moody's
    Moody's Investors Service has termed the RBI's revised framework for the resolution of stressed assets a credit positive move while suggesting the country's insolvency code mechanism to speed up resolution process.
     
    It has also given thumbs up to the RBI's move to extend the circular to NBFC firms on provisioning for NPAs. 
     
    "The Reserve Bank of India's (RBI) revised framework for the resolution of stressed assets is credit positive because it brings back the focus on the need for the timely resolution of such assets, and the build up of loan loss provisioning against those assets," Alka Anbarasu, Vice President, Financial Institutions Group, Moody's Investors Service said. 
     
    Extension of the circular to non-bank finance companies (NBFCs) will help align the loan-loss provisioning norms for the large stressed accounts of NBFCs with commercial banks, she said. 
     
    But she also added that the IBC still has to overcome the timely resolution of the stressed assets.
     
    "Nevertheless, the slower-than-expected progress under the Insolvency and Bankruptcy Code remains the key hurdle to the timely resolution of stressed assets. The cleanup of the bank's balance sheets could therefore still take another two to three years," noted the credit rating agency.
     
    The RBI on June 7 issued a new prudential framework for resolution of stressed assets, effectively replacing its controversial February 12, 2018 circular with a mixed bag of norms applying to a wider class of lenders. 
     
    Three major changes mark the new circular: The central bank has now made it voluntary for lenders to take defaulters to the NCLT and the framework now applies to a larger gamut of lenders, including small banks and non-banking finance companies, and penal provisions have been introduced for lenders. 
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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