Dreams Persist Amidst Economic Struggles
Synopsis: Money9’s annual survey, the most extensive examination of Indian households, covers more than 35,000 households across 20 states, revealing a diverse cross-section of income levels, age groups, and geographical locations. Notably, Karnataka surpasses Maharashtra in average monthly household income, reaching Rs 35,411.
Startling revelations from the Money9 Mega Annual Personal Finance Pulse survey shed light on the financial landscape of India. More than 22% of Indians have been forced to deplete their lifetime savings due to unexpected medical emergencies. Despite signs of economic recovery, a daunting 56% of Indian households live in constant fear of job loss.
However, amidst these challenges, India continues to dream. The survey indicates that 3% of families plan to purchase a two-wheeler or car in the next six months, while over 10% have their sights set on acquiring a smartphone within the same period.
This groundbreaking data comes from Money9’s annual Personal Finance Pulse survey, the most extensive and comprehensive examination of Indian households’ income, expenditures, standard of living, savings, investments, and future aspirations. Money9, India’s first multi-media and multi-language Personal Finance platform, is also the fastest-growing super app, and it is part of the TV9 Network, India’s premier news network.
The 2023 edition of the survey has covered more than 35,000 households across 20 states, spanning 1,170 locations and 115 districts in India. It represents a diverse cross-section of age groups, income levels, and geographical locations, encompassing both urban and rural populations. Special attention has been given to urban and suburban households.
This survey was conducted in collaboration with Research Triangle Institute (RTI) International. RTI International has a proven track record of conducting research studies for various clients, including esteemed organizations such as the World Bank, International Finance Corporation, and the World Health Organization.
“Amidst the financial challenges revealed by the Money9 Mega Annual Personal Finance Pulse survey, the resilient spirit of India shines through. The data puts a spotlight on both the struggles and dreams of our people. As the MD and CEO of TV9 Network, India’s No.1 News Network, I see a nation unyielding in its aspirations, adapting to change, and crafting unmeasurable layers that define the complexity and richness of India’s financial landscape.” said, Mr. Barun Das, MD and CEO, TV9 Network
“Navigating the intricate threads of India’s financial narrative, I find inspiration in the resilience of our people. The Money 9 Mega Annual Personal Finance Pulse survey unravels the stories of challenges and aspirations, painting a vivid picture of our economic landscape. Through these revelations, we empower individuals with knowledge, fostering a community that dreams, adapts, and charts its course towards financial well-being,” said Anshuman Tiwari, Editor, Money9.
Post covid recovery and risks:
The survey reveals that the return of migrant labourers post-Covid has contributed to an increase in the income of India’s urban households in 2023. The average monthly income has surged by over 12% to reach Rs 25,910, up from Rs 23,000 the previous year. However, a staggering 77% of Indians still earn less than Rs 35,000 per month. The Money 9 personal finance survey’s financial security index categorizes 65% of Indian households as financially vulnerable. Alarmingly, only 30% of households reported an improvement in their financial situation in the last five years, while over 70% experienced a decline or stagnation during the same period.
Big upset in state’s ranking:
In a surprising turn of events, Karnataka has surpassed Maharashtra to claim the top spot in terms of average monthly household income. Karnataka now boasts an impressive figure of Rs 35,411, dethroning Maharashtra, which held the title in the 2022 survey.
Insurance penetration grows:
Despite the changing financial landscape, the affinity of Indians for gold and traditional bank deposits remains unwavering. Approximately 77% of Indians prefer to safeguard their hard-earned money through bank deposits, while 21% choose to invest in gold. Encouragingly, the survey indicates a positive trend in insurance penetration, with over 27% of households holding life insurance policies in 2023, up from 19% in the 2022 survey. However, a concerning 53% of households still lack health insurance coverage.
Stocks and Mutual Funds shine:
India’s burgeoning stock market is gradually making its way into the pockets of investors, with the percentage of stock market investors surging from a mere 3% to 9% compared to the previous year. Additionally, 10% of Indian families have now embraced mutual fund investments, up from 6% in 2022.
Not Just India, it is about your city:
Regional variations persist, with southern Indian cities such as Bengaluru (69%) and Thiruvananthapuram (66%) leading in gold savings. In terms of insurance penetration, Madurai (84%) claims the top spot, followed closely by Amravati (79%) and Aurangabad (76%).
Aspirations Amid Challenges:
Despite facing challenges, India continues to aspire to greater heights. The percentage of Indian households affording a luxurious lifestyle has increased from 3% in 2022 to 5% in 2023. While luxury remains concentrated primarily in metro cities, these findings underscore India’s relentless pursuit of progress.