Majority Indians think big reforms to boost economic growth: survey

Lower economic group are mostly pessimistic about the impact of the development

Majority (51%) of Indians think that the recent big-bang reform measures like foreign direct investment (FDI) in retail, aviation and broadcasting by the UPA government will help boost economic growth, according to the ‘Mood of the Nation Survey’ conducted by global research firm Ipsos.

Although 49% people felt that recent reform measures by the union government will not help much, a large section of respondents from higher income group felt that the economic reforms will help boost the economy, whereas lower middle class group are pessimistic. Interestingly, citizens of Lucknow are most optimistic (59%) about reforms and citizens of Chennai are least optimistic 33%.

“The series of policy decisions announced by the government lately signal that India is on the move - continuous inflows of foreign capital into equity market have boosted the market sentiment and the Sensex is on a record high; rupee has substantially appreciated against dollar; and the recent reforms measures has helped ward off the downgrade threat to a large extent by credit rating agencies,” said Mick Gordon, CEO, Ipsos in India.

More than half (55%) of Indians believe FDI in Retail will generate more employment opportunities. Older generation (37 to 50 years old) are more optimistic than the younger lot (22 to 36 years old). Lucknow-ites are most optimistic (73%) about FDI induced employment then residents of Chennai (30%).

However, more than half of the respondents (56%) felt that the FDI in Retail will throw Kirana (Mom-Pop) stores out of business. Among the markets surveyed, Chennai-ites are most certain (74%) about Kirana stores going out of business and Delhi-ites are least certain (36%).