Consumer sentiment lag among other backward class community, shows data

The post-pandemic recovery in consumer sentiment has not been uniform across caste groups.

Members of the other backward classes (OBC) community are lagging on consumer sentiment, shows data from the Centre for Monitoring Indian Economy (CMIE) consumer surveys. Upper caste recovery has been more robust, in line with an improvement in their economic conditions.

The Index of Consumer Sentiments for the month of August 2023 was 12.4 per cent below its August 2019 level for the OBC community. It was down 10.4 per cent for upper caste respondents. The month-on-month also shows an improvement for upper caste respondents. It shows a decline for those from the OBC community (chart 1).

Some of this may be linked to changes in their economic conditions. Economic conditions are 11.9 per cent below 2023 levels for OBC respondents. It was 9.8 per cent for the upper caste segment (chart 2).

 

The scheduled caste community has also done worse than upper caste respondents. Consumer sentiment for scheduled caste respondents is still 10.2 per cent below where it was in August 2019. It is up 4.3 per cent for scheduled tribe respondents, the only defined segment with gains since before Covid-19.  Scheduled tribe respondents also report better economic conditions, up 5.6 per cent in August 2023 compared to August 2019. The scheduled caste community has seen a 10.7 per cent decline in the same period.

The trends are similar as expressed in the Index of Consumer Expectations. All except the scheduled tribe community have lower values than seen in August 2019. Upper caste respondents have expectations down 10.8 per cent from where they were in August 2019. The OBC community is the worst affected with sentiment 12.8 per cent below what was seen in August 2019.