Tag: urban India

Happiness index on the rise in urban India: Ipsos survey reveals a 76% happiness rate in April

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Ipsos IndiaBus Happiness Survey for April reveals that 76% of urban Indians claim to be happy. This sentiment is consistent across cities, demographics, and cohorts, with the exception of the south zone where only 55% express happiness.

The happiest groups, according to the survey, are citizens of tier 1 cities (87%), the west and north zones (84% each), tier 2 cities (79%), SEC B (79%), SEC A (78%), full-time homemakers (79%), and those aged 18-30 years (78%). Women (77%) were found to be happier than men (75%), and happiness scores were equal (76%) among those with low and high education levels.

Parijat Chakraborty, Group Service Line Leader, Public Affairs, Corporate Reputation, ESG and CSR at Ipsos, in a statement, said, “Over 70% of citizens claim to be happy, except those in the south zone. Their lower scores were largely due to their views on the world’s situation (31%) and the country’s situation (32%). They were also less happy with their economic and financial conditions (41%) and circle of friends (47%).”

The survey also explored various areas of citizens’ lives to measure their happiness levels. In April, respondents reported being happiest about their family (78%), health (74%), circle of friends (71%), employment or work (69%), colleagues or business partners (65%), the country’s situation (62%), economic or financial conditions (61%), neighbours (60%), and the world’s situation (58%).

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Chakraborty added, “Happiness is not just a state of mind; it depends on several factors like family, health, friends, work, financial conditions, stability in the country and the world, and neighbours. The most interesting fact was that tier 1 citizens were the happiest at 87%. Tier 1 cities are booming with jobs and have a lower cost of living, as they are developing and becoming economic hubs.”

From January to April 2024, overall happiness scores have been rising and stabilised in April 2024. Compared to the first quarter of 2023, citizens are happier in the first quarter of 2024.

“There is definitely an upturn in happiness in 2024 compared to 2023, especially around financial and economic conditions – 46% in 2023 to 61% in 2024. Happiness has surged across parameters, and happy citizens are good for the country’s progress,” added Chakraborty.

The Ipsos IndiaBus is a monthly, pan-India omnibus that uses a structured questionnaire and is conducted by Ipsos India on diverse topics among 2200+ respondents from SEC A, B, and C households. The survey covers adults of both genders from all four zones in the country and is conducted in metros, tier 1, tier 2, and tier 3 towns.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Rural India adding ‘super rich’ faster than urban, study shows

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India will see a five-fold increase in its ‘super rich’ families by the turn of the decade and a large chunk of the growth will come from rural areas — home to the nation’s poorest, according to a study.

The number of super rich households, those earning more than 20 million rupees ($243,230) a year, almost doubled to 1.8 million in five years to 2021, showed a report released Wednesday by People’s Research on India’s Consumer Economy and India’s Citizen Environment, or PRICE. The growth of such households in villages was 14.2 percent compared to 10.6 percent in cities.

Super rich households will swell further to 9.1 million by 2031, aided by faster growth in rural areas, showed the study by the think tank which polled more than 40,000 people in 25 states.

“People are increasingly engaged in commercial agriculture businesses as well as non-agriculture activities in rural areas,” said Rajesh Shukla, chief executive officer of the organization and the author of the report. “Entrepreneurs are flooding into rural areas, creating jobs and small businesses that drive the economy.”

Global wealth managers and foreign banks are expanding in India as the nation becomes home to a rising number of millionaires. Oxfam International estimates India minted 70 new millionaires each day between 2018 and 2022, putting spotlight on the nation as multinationals look to tap a growing consumer market.

Along with a burgeoning middle class which is spending on luxury cars and foreign holidays, Asia’s third-largest economy is also seeing a rapid rise of billionaires such as Gautam Adani. While this underscores the growth potential of the the country, it also highlights the rising inequality in the nation.
The survey also found that the country’s middle class population of 432 million — earning between $6,000 and $36,000 annually — is the fastest-expanding category, and is predicted to reach 715 million by 2031. The “destitute” class, with income less than $1,520, will shrink by more than half to 79 million by that time.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bharat vs India home loans: Why affordable segment needs more attention?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Food, clothing, and shelter have been rightly stated as the three basic necessities of life. People especially those belonging to the low and middle-income sections of the society spend almost all their life’s earnings to gather enough corpus to build a house for themselves.

In India, the concept of ownership of a house implies much more than just ‘a roof overhead’. Having a house is regarded as an essential part of the Indian socio-economic structure as it offers a means to both financial and emotional security. But, when it comes to the provision of housing as a basic amenity for the low-cost segment of society, there is a huge gap that needs to be bridged.

The government of India has focussed its efforts on making housing more affordable, accessible, and sustainable for its people in the low-cost segment in particular. The launch of ‘Pradhan Mantri Awas Yojana (PMAY)’ is synonymous with the efforts in that direction.

Through the ‘Housing for All’ scheme under the PMAY, the Government intends to provide around 30 million affordable ‘pucca’ houses by 2022. The PMAY also offers interest subsidies on home loans under its Credit Linked Subsidy Scheme (CLSS) that can be availed by aspirants belonging to the Economically Weaker Sections (EWSs), the Low-Income Groups (LIGs), and the Middle-Income groups (MIGs).

Banks with their traditional banking systems have always been more inclined towards providing high-ticket size loans and disbursing loans to the high-income segments in urban pockets, as they eye better returns from those. Just sample this data from the Reserve Bank of India (RBI), nearly 60 percent of home loans in India are disbursed in Delhi-NCR & Maharashtra alone.

In contrast, the loan applications of the low-income groups are usually rejected, citing varied concerns like the risk of default, low credit scores, etc. thus inhibiting the lower-income segment from utilizing their allied benefits.

As per data from the 2010 McKinsey Report, the demand for affordable housing has risen from 19 million in 2012 and is expected to reach 38 million by 2030. The CRIF report mentions a substantial percentage of this demand is expected to be driven by the low-income and mid-income segment notwithstanding; the supply is still bleak.

Quite a lot of factors play a major role in limiting financing opportunities for the Economically Weaker Sections and Low-Income Groups namely:

• Meagre savings to cover unforeseen risks
• Lack of substantial collateral
• Absence of land titles
• Financial illiteracy
• Informal occupation
• Low lending capacity
• Risk of payback
• Lack of access to credit
• Deficit of unsecured loans and more.

Additionally, the lack of basic amenities, job opportunities, essential services in the low- income group from rural India is leading to migration in the cities. The rapid urban crowding is further causing a huge deficit in affordable housing that is detrimental to the overall economic growth and development of the country as a whole. All in all, the low-income group suffers a hit both on the rural and urban front.

Banks, more often turn a deaf ear to the loan requirements of the low-income aspirants even if the latter is applicable for one. They are categorized as ‘risky’ due to higher chances of default. Cases of low-income loan applicants being involuntarily pushed over to take loans from the informal and unregulated financial sector at higher interest rates are also normal.

Lending rates can go as high and can range up to 18 percent to 25 percent for many low and middle income home loan applicants. Our observation so far has been that default rates are lower for such an income category, if robust fraud checks are in place, as home is the biggest asset this family has, and they are more credit conscious.

Keeping all these factors into consideration, it is evident that the traditional risk assessment route followed by the financial institutions is not in favor of the so-called high-risk segment. Looking at the ever-increasing demand for affordable housing fuelled by urban crowding and the need for better living, there has been a significant rise in the NBFCs, HFCs, and other private players that have shown interest to cater to the low and mid-market sections.

The traditional model of financing has minimal scope to effectively reach the bottom of the economic structure. The ongoing covid pandemic and smartphone penetration has taught the entire world the digital way of things. Especially post the pandemic, the financial institutions and lenders have shifted most of their processes including KYC, loan application, etc online.

The financial institutions must leverage this growing acceptance of digitization as it will lead to more penetration in the low-cost segment giving people more opportunities to access customized financial services which were difficult in traditional financing.

The collaboration of fintech with banking systems is evolving the financial ecosystem at a very fast pace. Through the Fintech evolution and integration, financial products can be tailored as per the need of the target market. FinTech is emerging as a blessing in disguise for the low-income sector providing them with affordable housing with great ease of access.

Furthermore, suggestions such as wavering off stamp duty by the NHB also help in promoting financial inclusion and give a kick to the affordable segment. The objective is to enhance the eligibility of the low-income segment by providing them with low-cost credit facilities.

With a larger percentage of the populace qualifying for credit, the country’s economy will also get a substantial boost. In conclusion, it will be beneficial for the entire economy if the Government and the private players in the financial sector continue to bring and implement innovative solutions and financial instruments to narrow the gap between Bharat loans and India loans so that in the near future, they would just be called loans.

The author, Atul Monga, is Co-founder and CEO at BASIC Home Loan. The views expressed are personal

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Urban India raises focus on savings, cuts down luxury expenses due to COVID-19

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Urban India has increased savings and investments, and cut down basic and luxury expenses significantly due to the outbreak of COVID-19 pandemic, according to a survey done by Max Life Insurance.

Urban India continues to grow anxious about financial security, fear of COVID-19 infection, untimely death of breadwinner, and cost of COVID-19 treatment, Max Life’s India Protection Quotient (IPQ) 3.0 revealed.

Term insurance ownership registers 4 percentage point increase during Covid-19 pandemic; however, conversion to ownership of term insurance still under 50 per cent, it said. Around 4,357 respondents were surveyed via face-to-face interviews with adequate safety measures across 25 cities comprising six metros, nine Tier I and 10 Tier II cities, it said.

Urban India has grown more anxious about financial security and preparedness in the last one year, the survey said, adding, financial anxieties related to COVID-19, and ability of current earnings to cover expenses have emerged as top concerns for them.

“IPQ 3.0 brought to light that in comparison to pre-COVID-19 times in IPQ 2.0, urban Indians are prioritizing savings and investments over discretionary spending. “Savings and investments increased from 41 per cent (IPQ 2.0) to 50 per cent, whereas basic expenses decreased from 44 per cent (IPQ 2.0) to 41 per cent and luxury expenses decreased from 14 per cent (IPQ 2.0) to 9 per cent,” it said.

Savings objectives also saw some change during the pandemic, it said. While only 35 per cent saved for untimely death of breadwinner earlier, a higher 41 per cent saved for it now and 62 per cent saved for old age security, as compared to 57 per cent earlier, it added.

With a sense of increasing worries and reducing security, IPQ 3.0 saw urban Indians becoming more proactive about financial planning and overall health and fitness. 69 per cent respondents said that they’re proactive about financial planning and they believe in saving more than spending respectively, it said. Even with a vaccine in sight, ‘Digitally Savvy Urban Indian’ continues to feel attitudinally less secure at 51 per cent, it said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

From noodles to ketchup: What India stocked up on during the lockdown

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Growth in the last four months has been mixed for India’s FMCG industry. In the period of March to June 2020, urban markets saw a whopping 10 percent growth against a growth of 3-3.5 percent in the preceding two months. This has been largely owing to panic buying that has been seen in urban markets.

Volume growth in India’s rural markets has been comparatively moderate. Rural markets saw volume growth of 5 percent in May 2020, as compared to the 1 percent growth in April and 3.2 percent growth in March, according to data from Kantar Worldpanel which tracks purchases of over 80,000 Indian households every month.

“Low rural growth has been due to logistical issues. Expect better growth in rural markets going forward aided by macro factors like a good monsoon and good harvest,” said K Ramakrishnan, MD, Kantar Worldpanel.

One category that saw exponential growth in the March to June period was the hygiene category. Owing to the Coronavirus outbreak in the country, consumers lapped up hygiene products across segments.

For instance, sanitisers were estimated to have been used by 25 percent of urban households. Last year, the annual penetration of sanitisers was 1.5 percent. Growth in categories like skin cleansers, floor cleaners and utensil cleaners was up 30 percent, 80 percent and 20 percent year-on-year.

While staples saw moderate growth in this period, it was ready to eat and convenience food which saw exponential growth. Edible oil grew 12 percent, spices grew 10 percent and tea grew 15 percent in India’s urban markets. Ready to eats and packaged food like biscuits and instant noodles saw 48 percent and 36 percent growth respectively. Sauces saw a growth of 32 percent and salty snacks grew by 26 percent in the March to June period.

A big hit was seen in the beverages category. “Soft drinks and beverages are categories that have suffered owing to no out of home consumption. Soft drinks as a category lost 16 million households,” said K Ramakrishnan.

In the non-food FMCG segment, the grooming category was adversely impacted by the lockdown. Talcum powder as a category lost 10 million households and hair oils as a category lost 12 million households. “Grooming categories like hair oil, hair colour and talcum powder have lost share in the March to June period owing to the lockdown,” said K Ramakrishnan.

Kantar Worldpanel is of the view that with production and logistics stabilising, urban growth should come down a bit and rural growth should pick-up owing to positive macro factors.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

More than just a livable space — built environment to turn top urban job creator

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The built environment (BE) is a social-science term for ‘the human-made spaces in which people live, work and recreate on a day-to-day basis’.

Today, BE transcends just a livable place. It is a multifaceted field that comprises design, construction, management, and use of advanced technologies over conventional ones. BE also draws aspects from various other disciplines such as economics, law, public policy and public health. Within the realm of public health, the term is referred to as renovating areas for improving the living standard, health and environment of people living within a community or place.

The growth in urban India may be fast-paced, yet 70 percent of its BE requirement by 2030 is yet to take shape, making it a lucrative sector for investments. But India has its problem matrices too — a rapidly growing population, infrastructure scarcity and alarmingly increasing pollution — within the constraints of which, our BE needs to be flexible and adaptable too.

In the past two years, there have been drastic changes in the business processes of Indian real estate and urban infrastructure sectors owing to a host of reforms including Real Estate Regulatory Act, the introduction of the Goods and Service Tax, Real Estate Investment Trusts, Infrastructure Investment Trusts, Relaxation of norms for foreign direct investment and external commercial borrowing. These reforms have brought with it the ease of doing business in this sector and have forced this traditionally unorganised sector to shift to an organised format which is also professionally managed now. With the need for professional management openings in the sector, BE now needs people with technical and managerial skills.

It is predicted that Indian BE will be the third largest industry in the world by 2030. With a year-on-year growth predicted at 7-8 percent, it is set to create ample employment opportunities for future generations.

According to the UN Department of Economic and Social Affairs, 35 percent growth in world’s urban population till 2050 is expected to come from only three countries — India, China and Nigeria. Also, the absolute growth in urban population of India is predicted to be the highest. And the Indian real estate and infrastructure industry will be a crucial contributor to this growth.

According to another study, the Indian BE sector will face an acute shortage of manpower, to the extent of almost 85 percent — a gap of mammoth proportions! And the reason for this dearth will be lack of skilled professionals due to obsolete programmes and technologies imparted in most colleges and universities. The study curriculum needs to change if students are to be industry-ready. The need of the hour is industry-institute partnerships with practical pedagogy and ‘case studies method’ taking precedence over theoretical dissemination of knowledge. Higher education institutes need to be cognizant of the fact that students seeking career opportunities in the BE sector need to understand the requirements of the industry so that they can create a better place for themselves. They need to be technically updated and should also have top managerial skills for professional growth. Techno-managerial courses offered by various top-level accredited universities and colleges are the best options for students to develop a strong mix of these skills and abilities.

Dependent on a number of metrics like skilled manpower, flexibility and technological advancement, the BE is transforming the country as India’s real estate sector is expected to contribute 13 percent to the country’s gross domestic product (GDP) by 2025 and the market size is expected to be $1 trillion by 2030.

Amol Shimpi is the director and associate dean of RICS School of Built Environment.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

50% of India’s population will be urban by 2050, says housing affairs minister Hardeep Singh Puri

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With India being among the top five countries in terms of green buildings, the country should aim to make its 4,500 cities and towns environmentally friendly to enable it to grow in a sustainable manner, Union Minister of State for Housing and Urban Affairs Hardeep Singh Puri said on Thursday.

In his inaugural address at the 16th Green Building Congress here organised by the Indian Green Building Council (IGBC), Puri said that with growing urbanisation, half of India’s population will be living in cities by 2050.

“India’s 4,500 cities and towns must all be green for India to grow in a sustainable fashion. The government, building sector, and stakeholders must all work together to provide green solutions,” he said.

“By 2030, 40 percent of our population will be living in cities and by 2050, this will rise to 50 percent. Therefore, it becomes imperative to plan and conceive these cities as green, right from the initial stages.”

Underling the importance of sustainable green development in her address, World Green Building Council Chairperson Lisa Bate said: “On a global scale, buildings today produce 33 per cent of GHG emissions and consume 40 per cent of energy. Two to five times more pollutants are found inside buildings as compared to the outdoors.”

The Minister presented IGBC’s highest category Green MRTS ‘Platinum’ award to three Hyderabad Metro stations – Rasoolpura, Paradise and Prakash Nagar.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow