Mr & Mrs
India
Anirudha Dutta
Senior Investment Analyst
Elsa Menezes and Srinivas Radhakrishnan
Research Associates
Amar Gill
Head of Thematic Research
FULLY UPDATED
2009
THE MR & MRS ASIA SURVEYS
EDITION
Summer 2009
Understanding India
Summer 2009
anirudha.dutta@clsa.com
Page 2
Foreword
Two years ago, we set out to discover and
understand the consumption trends, priorities and
mores of India’s rising middle class, as part of a
regionwide study that involved each of the 11 key
markets we cover and culminated in the landmark
Mr & Mrs Asia report.
Anirudha Dutta
Senior Investment Analyst
As far as Mr & Mrs India were concerned, we
found that, although they were markedly
conservative, their aspirations were rising rapidly
and their optimism was high.
That survey back in 2007 was conducted in the
midst of a bull market. Then came the crash. In April and May this
year, we revisited our study to see how the slowdown of the past 12
months has affected Mr & Mrs India’s income, spending and outlook.
We surveyed 248 households from 51 cities and towns across 16
key states. Half of our respondents are in the 25– to 34-year-old
age bracket. Some 70% are employed (compared with 43% in
2007), and only 22% are businessmen or self-employed (versus
49% in 2007), reflecting the growth in employment in India’s
organised sector during the past eight to 10 years.
With 72% having annual incomes of up to Rs400,000 (compared
with more than 90% in 2007), our respondents this time around are
generally more affluent than those we spoke to for the 2007 survey,
although both groups fall within the same socio-economic category,
by and large.
Given the differences in job profiles and average incomes, the
results of our surveys in 2007 and 2009 aren’t strictly comparable.
Nonetheless, the common socio-economics of the two groups
ensures a high degree of homogeneity, as is clear from many of the
responses.
Summer 2009
Reinforcing the image of a conservative middle class are our findings
that more than half the respondents have no credit cards, 65% don’t
own cars and 83% have no mortgages. Of course, these results once
again highlight the enormous opportunity that exists as these
households start spending to achieve their aspirations.
What impact has the downturn had? Just over one-third of our
respondents have taken a hit to their household income. Not
surprisingly, savings have been adversely affected and many
households have cut back on discretionary spending - yet, at the
same time, some have increased their expenditure on essentials such
as education and health care.
Despite the downturn, our respondents exhibit a high degree of
optimism that may well have been boosted by the surprisingly
positive outcome of the recent general elections. Such optimism is
consistent with our 2007 survey, as well as our more recent, detailed
report On the road: India’s people, places, power and politics. This is
no doubt underpinned by the fact that India’s economy continues to
grow at a healthy clip of over 6%.
Given this level of optimism, it’s not surprising that so many of our
respondents plan to buy property. Some 62% already own their home
(versus 71% in 2007 which included homes of parents and in-laws),
with 27% wanting to purchase property in the next 12 months
(versus 12% in 2007). We attribute this to the decline in real estate
prices and interest rates.
The findings detailed in this report provide further insight into what
Mr & Mrs India are thinking at this critical juncture. Significantly, they
show that, despite the slowdown, their confidence and optimism
about the future remain undiminished. This domestic demand is why
we believe that the Indian economy will be among the first to turn
around, and why we remain firm believers in the resilience of the
consumer and the country.
anirudha.dutta@clsa.com
Page 3
Key findings
The average family of 4.7 people lives in
a 1,300-1,400sf apartment; 62% own
property, but only 17% have a mortgage
Despite the slowdown, 65% expect
employment prospects to improve
over the next 12 months
35% of households own cars, but 58%
do not have credit cards
And despite the impact on employment
and income, there’s a clear desire to
buy property after the price pullback
40% of respondents have been affected
by the economic downturn; and 31%
have seen family members affected
As a result, 61% have changed their
spending patterns; and 86% are saving
less this year than they did last year
Spending on holidays and jewellery have
been cut the most; spending on education
and food & groceries have increased
Average household savings are 10.4%,
which is significantly below the national
average of over 30%
Summer 2009
There is little participation in the stock
market by this group, with 84% not having
bought stocks over the past 18 months
Over the next 12 months, 27% want to
buy a house and 19% want to buy a car
Deposits have been the best investment
during the past 12 months
33% of respondents have confidence
in the government's ability to handle
the slowdown, versus 41% who don’t
Rising prices and employment prospects
are the biggest concerns
anirudha.dutta@clsa.com
Page 4
Key findings: 2007 versus 2009
2007
2009
Property
12% planned to buy property in the near future
27% plan to buy a home in the next year
Car
19% of households had a four-wheeler
35% of respondents have a four-wheeler
Planned vehicle purchase
21% planned to buy within the next three years
33% of those not planning to buy in the
next 12 months say they will do so in the
next two to three years
Saving
On average, our respondents saved 13%
of their income
On average, our respondents save 10.4%
of their after-tax income
Most profitable
investment
Land and property
Deposits and property
Summer 2009
anirudha.dutta@clsa.com
Page 5
Investment conclusions
Property sector. Latent demand for housing remains strong. With property prices cooling off
and interest rates declining, 27% households are now keen to buy property during the next
12 months. Overall, we remain U-WT the sector, but our relative preferred pick is Unitech.
Retail financial services. Lower interest rates and a concerted effort by state-owned banks,
in particular, to encourage lending is resulting in growth of the retail portfolio. Our survey
shows penetration of products such as loans and credit cards still has a lot of room to grow.
Long term, we prefer private-sector firms such as ICICI Bank, Axis Bank and HDFC.
Autos. Two-wheelers have high penetration (72%, according to our 2007 survey). That 65%
of our respondents don’t own a car is indicative of the latent potential: 19% want to buy one
during the next 12 months; 33% of the rest want to buy within the next two to three years.
With 40% of respondents preferring Maruti, it remains our key pick in the sector.
Consumption spending. During the slowdown, families have cut back discretionary
spending, which has adversely affected sectors such as travel, leisure and high-end
discretionary areas. We remain cautious on sectors such as airlines, hotels and retailing
because of a combination of demand and balance-sheet issues; however, any rise in incomes
will result in increased spending on these. Long-term winners are Titan and Jet Airways.
Education. Despite the slowdown, education remains a priority and spending has increased
the most during the past 12 months. With 61% of households having at least one child, and
about 70% of them still under 10 years of age, we remain believers in this sector’s long-term
potential. Our top pick remains Educomp.
Summer 2009
anirudha.dutta@clsa.com
Page 6
Demographics: Who and where
India has 240m households, with
more than 30% of the population
living in some 5,000 cities and towns
SEC classifications of urban India
SEC A
10%
SEC E
28%
SEC B
Officially, the population is classified
by socio-economic (SEC) groups,
based on education, employment
and ownership of assets
These classifications overcome the
issue of under-declaration of income,
which is estimated to be high
SEC A accounts for about 10% of the
urban population; SEC B about 17%;
and SEC C about 21%
17%
SEC C
SEC D
21%
24%
Median age: India is a young nation
India
24
US
44
37
UK
38
0
10
20
30
Source: Technopak
Summer 2009
39
30
Russia
anirudha.dutta@clsa.com
Page 7
2025
39
36
China
The lower ends of SEC A and SEC B
are usually defined as middle class
2000
31
40
44
(Years)
50
Demographics: Young and fertile
India forms a traditional pyramid
India’s population pyramid in 2000 . . .
80+
The fertility rate of 2.9 births per woman
is among the region’s highest
Female
70-74
Male
60-64
50-54
India’s population grew at 1.7% over
1990-2005, compared with 2.1% during
the previous two decades
40-44
30-34
20-24
10-14
The country’s labour force will grow at
1.7-1.84% per year through to 2015
(%)
0-4
60
40
20
0
20
40
60
India’s labour-force growth (YoY)
. . . and the forecast pyramid for 2025
80+
Female
70-74
Male
2.4
60-64
2.2
50-54
2.0
40-44
1.8
30-34
1.6
20-24
(%)
2.6
1.4
10-14
1.2
(%)
0-4
60
40
20
0
20
40
60
1.0
81
84
87
90
93
96
99
02
05
08
Source: United Nations, Hokenson & Company, ILO
Summer 2009
anirudha.dutta@clsa.com
Page 8
11
14
17
20
Demographics: Young and literate
Breakdown of India’s population by education
College but not
graduate
4%
Graduate general
Graduate - professional
1%
9%
Postgraduate - general
2%
SSC/HSC
23%
Postgraduate - professional
0%
Illiterate
19%
Literate, but
not formal
2%
School to Std 5-9
34%
65% of the population is under 35 years
old; and half of these are under 25
13m people enter India’s urban workforce
each year
81% of urban India is literate, but
graduates account for less than 12%
of the population
School to Std 4
6%
Skilled and unskilled workers account
for 23% of the population; only 8% hold
white-collar jobs
Source: Technopak
Summer 2009
anirudha.dutta@clsa.com
Page 9
Respondent demographics
Our survey, covering 51 towns and
cities, involves almost 250 families
We surveyed 248 families across 16 states
88% of our sample is over 25 years old;
and our respondents’ average age is 33
Almost 90% are graduates; 70%
are white-collar workers; and 21%
are self-employed or businessmen
Saharanpur
Noida
New Delhi
Jhunjhunu
72% of our respondents are married;
and 56% live with extended (joint) families
Jaipur
Agra
Firozabad
Meerut
Lucknow
Jhansi
Anand
Raniganj
Allahabad
Ghazipur
Bhagalpur
Asansol
Ranchi
Indore
Burdwan
Mednipur
Akola
Bhubaneshwar
Behrampore
Talegaon
Mumbai
Khopoli
Pune
Hyderabad
Madgaon
Almost 58% disclosed an annual income of
Rs100,000-400,000 (US$2,200-8,800)
Bangalore
Chennai
Source: CLSA Asia-Pacific Markets
Summer 2009
Bangaon
Konnagar
Kharagpur
Kolkata
Nagpur
Aurangabad
61% of households include children;
the average number of children is 1.8
Shillong
Patna
Kanpur
Varanasi
Raipur
Thane
Guwahati
Rampur
Dewas
Ahmedabad
76% of the households comprise
three to six people; on average,
there are 4.7 people in each home
Ghaziabad
Milak Rampur
anirudha.dutta@clsa.com
Page 10
Cuttack
Respondent demographics cont’d
We interviewed the chief
wage-earner in each home
Breakdown of respondents
by marital status
12% of respondents are
below 24 years of age;
and 9% are over 45 years
15% of our respondents
are female
Breakdown of respondents by age
35-44 years
30%
Unmarried
28%
Female
15%
Male
85%
Married
72%
Do you live in a joint family?
45 years +
9%
15-24 years
12%
Breakdown of respondents
by gender
No
44%
Yes
56%
Children in your household?
No
39%
25-34 years
49%
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 11
Yes
61%
Respondent demographics cont’d
Almost 58% disclosed an annual income of
Rs100,000-400,000 (US$2,200-8,800)
More than 57% of our respondents are
graduates; 32% are post-graduates;
and 11% studied up to higher secondary
Breakdown of annual household incomes
Rs0.41-0.8m
Graduate
57%
Rs0.21-0.4m
32%
Breakdown of respondents by occupation
Intermediate
5%
Executive/
Associate
70%
SSC/HSC
5%
Post-graduate
32%
Can't say
6%
Rs0.11-0.2m
25%
70% of our respondents are executives or
associates; 12% are businessmen; 9% are
self-employed; with the rest being engaged
in “other activities”
Breakdown of respondents by education
Up to Rs0.1m
15%
22%
School to Std 9
1%
Business
12%
Other
8%
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 12
Selfemployed
professional
9%
Shop owner
1%
People at home
56% of our households comprise four or fewer
family members
Breakdown of households
by number of members
44% of our households have more than five
members (versus 36% in our 2007 survey)
7-8
9%
5-6
28%
9-10
6%
61% of our households have children
11+
1%
Of those with children, 47% have at least
one child
1-2
8%
3-4
48%
Average number of children per household
among our respondents is 1.8
Average age of the children is 7.8 years
Children in your household?
If so, how many children?
Two
36%
No
39%
>15 years
13%
Three
10%
Four
5%
Yes
61%
One
47%
Breakdown of children’s ages
>Four
2%
6-10 years
32%
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
0-5 years
36%
11-15
years
19%
Page 13
People at home cont’d
Any dependents at home?
62% have dependents other than children
34% have three or more dependents other than
children
No
38%
Dependents are mostly parents and in-laws (accounting
for 65% of total dependents)
Yes
62%
Spouses (mostly wives) are the other major
dependents, although more women now work
If so, how many dependents?
Who are the dependents ?
0
20
40
60
80
Father
Four
6%
Two
29%
>Four
3%
One
36%
Spouse
Brother
Sister
Grand mother
Mother in law
Uncle
Daughter in law
Sister in law
Grandson
Father in law
Nephew
Niece
Source: CLSA Asia-Pacific Markets
Summer 2009
120
(No.)
Mother
Three
26%
100
anirudha.dutta@clsa.com
Page 14
Income: Middle-class households
Breakdown of India’s labour force
by occupation
Unskilled
worker
13%
Not working
36%
Skilled worker
10%
Petty trader
12%
Retired
2%
Student
18%
Businessman
1%
Self-employed
professional
0%
Executive
Executive
(junior)
(middle/senior)
7
1%
%
72% of our respondents earn up to Rs400,000 per
annum (US$8,000); and 22% earn more than
Rs400,000 (US$16,000)
Thus, our sample represents middle-income and uppermiddle-income households
With 70% of our sample employed in the organised
sector, it is likely that they have disclosed their real
incomes
Average household incomes: Our surveys vs official data
(%)
Our 2007 survey
Our 2009 survey
Official data
<Rs0.1m
30.8
14.5
64.9
Rs0.11-0.2m
53.7
24.6
26.2
Rs0.21-0.4m
10.5
33.1
6.5
Rs0.41-0.8m
2.4
21.8
1.6
Rs0.81-2.5m
0.1
na
0.6
>Rs2.5m
0.1
na
0.3
Can't say
2.4
6.0
na
Total
100
100
100
Source: Technopak, NCAER, CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 15
Income: Impact of the downturn
Has the downturn affected your
own employment?
Yes
40%
No
60%
40% of respondents say the downturn has affected their
own employment, which probably reflects uncertainty in
the job market and income declines
31% of our respondents say the downturn has affected the
employment of other family members
Half the households have seen no decline in income;
34% say their overall household income has been hit
64% of those affected saw incomes decline by more than
10%; 22% saw incomes decline by over 20%
Has it affected the employment
of other family members?
Has it affected your overall
household income?
If so, by how much has overall
household income declined?
>30%
8%
Can't say
12%
Can't say
12%
Yes
31%
No
57%
21-30%
14%
Yes
34%
No
54%
11-20%
42%
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 16
0-10%
36%
Savings: Hurt by the slowdown
How much of household after-tax income
various respondents are able to save
The low savings rate among our respondents
is a reflection of their age and income profile
11-20%
25%
21-30%
9%
>30%
4%
0-10%
62%
10% of post-tax income is saved; this is
below the national average of more than 30%
(a similar result to that from our 2007 survey)
86% are saving less today than they did a
year ago
Savings of 38% of our respondents have
declined by more than 10% as the slowdown
has started hurting
Saving more or less than last year?
More
14%
If saving less, by how much?
11-20%
30%
If saving more, by how much?
11-20%
28%
21-30%
7%
31-40%
1%
Less
86%
21-30%
10%
0-10%
62%
0-10%
62%
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 17
Investments: Best and worst
Breakdown of our respondents’ wealth
Property and deposits account for the
major part of our respondents’ savings
Property
Deposits
Gold and jewellery also remain important
Business investments
Cash
Gold/jewellery
During the past year, deposits have been
the best investment; and stocks the worst
Bonds
Stocks/shares
Foreign currency
Surprisingly, property features high on
both the best- and worst-investment lists;
this is possibly a function of timing
(%)
Other
0
10
20
30
40
50
Best investment during the past 12 months?
Worst investment during the past 12 months?
Deposits
Stocks/shares
Property
Property
Cash
Bonds
Bonds
Cash
Business investments
Business investments
Stocks/shares
Deposits
Foreign currency
Other
(No.)
0
40
80
120
Other
(No.)
0
20
40
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 18
60
80
100
Major household expenses
Biggest expense for respondents is
rent or mortgage, averaging 21% of
total outgoings
Spending on food and groceries is a
close second at 20%
Education is the third-biggest cost,
accounting for 15% of households’
total expenditure
Average spending as % of total expenditure
Rent/mortgage
21
Groceries
20
Children's education
15
Transport
13
Healthcare
10
Clothing
10
Communications
9
0
(%)
10
20
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 19
30
Spending: Discretionary items cut
61% of our households have effected
major changes in their spending patterns
What have you increased spending on?
Education
Spending on holidays, jewellery, utilities
and transport have been cut
Food & groceries
Healthcare & medicines
However, there have been minimal cuts to
education, loan repayments and healthcare
(non-discretionary expenditure)
For those whose expenditure has gone up,
education, food & groceries and healthcare
are the major beneficiaries
Expenditure on food & grocery has risen
along with food prices
Apparel
Jewellery
Holiday
(%)
Other
0
20
40
60
80
100
Where have you cut back on spending?
Holiday
Have your spending patterns changed vs last year?
Can't say
11%
Fuel transport
Rent & utilities
(phone/cable/internet)
Loan repayment
Jewellery
Fuel & transport
Rent & utilities
(phone/cable/internet)
Apparel
Food g Groceries
Healthcare medicines
No
28%
Yes
61%
Education
Loan repayments
(%)
Other
0
20
40
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 20
60
80
100
Future spending: Who wins, who loses?
If a significant earner in your home were to
lose their job, what would you cut back on?
Do you plan to buy any of these major items
in the next six to 12 months?
Holiday
Rent & utilities
(phone/cable/internet)
Fuel & transport
Jewellery
100
Apparel
60
Food & groceries
50
Loan repayment
40
Healthcare & medicines
30
90
Yes
(%)
14
No
Can't say
22
32
80
70
Education
20
(No.)
Other
0
50
100
150
10
59
45
27
Home
If a significant earner in your home were to make
more, what would you increase spending on?
Jewellery
19
0
200
Education
22
59
Car
Consumer goods
Holidays, utility expenses, transport and
jewellery top the list of likely cutbacks
if a major breadwinner lost their job
Education, jewellery and holidays would
be the key beneficiaries if incomes rose
Holiday
Food & groceries
Healthcare & medicines
Apparel
Retailers and airlines should start doing
well as consumer confidence recovers
Fuel & transport
Loan repayment
Rent & utilities
(phone/cable/internet)
(No.)
Other
0
50
100
150
45% of respondents plan to buy consumer
goods in the next six to 12 months
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 21
Investments: Staying away from stocks
How much of your savings have you used
up to compensate for a decline in income?
And 13% say they plan to invest during the
next 12 months
11-20%
22%
21-30%
8%
0-10%
69%
Despite stocks and shares being seen as the
worst investment option, 16% have invested
in them during the past 12 months
>30%
1%
Have you bought stocks or shares
during the past 12 months?
However, most lower-middle- and middle-class
families still don’t see stocks and shares as an
investment option
Do you plan to buy stocks or shares
during the next 12 months?
Yes
16%
No
66%
Can't say
21%
Yes
13%
No
84%
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 22
Property: High level of ownership
Does you own your home?
No
38%
Yes
62%
Do you plan to buy a home in the
next 12 months?
Can't say
14%
No
59%
Yes
27%
62% of our respondents own their home; traditional
families staying in their home-towns typically own their
homes. Our findings are consistent with our 2007
survey results
27% plan to buy a home in the next 12 months significantly higher than the result from our 2007
survey, when only 12% said they were looking to
purchase property
This difference is probably due to the 20% decline in
property prices from end-2007 to 2009, coupled with
lower interest rates
Our Mar-09 Housing Buyer Survey highlighted that
80% of potential home-buyers planned to purchase
during the next one to two years
Our respondents believe that property prices have
come off by an average of 15% since peak; but
90% say they don’t think prices are lucrative enough
just yet
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 23
Mortgages: Room to grow
Do you have a mortgage?
Yes
17%
This could be attributable to better credit
availability during the past few years; credit
growth on mortgages for home-buyers grew
35% FY07-09
No
83%
How many properties have you
bought on mortgage?
One
92%
17% of our respondents have a mortgage significantly higher than the results of our
2007 survey, when only 7% had taken out
housing loans
Two
8%
As well, the respondents to our latest survey
are generally from a higher income group,
although they’re largely from the same socioeconomic stratum
8% of our respondents have mortgages
on two properties, suggesting that purchases
of property for investment has increased
during the past two years
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 24
Cars: Desire to drive
35% of our respondents own a car considerably more than the 19% of
our 2007 respondents who owned a
four-wheeler
Does your household own a car?
Yes
35%
This difference is probably partly
due to the income differences in the
two samples, but also to increased
penetration of cars during the past
two years
No
65%
Between FY91 and FY09, two-wheeler
penetration in India has increased
from 16.9 to 69.9 (per 1,000 people)
Increase in two-wheeler penetration
80
(Two-wheeler/'000)
70
60
50
40
30
20
10
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 25
FY09 E
FY07 E
FY05 E
FY03
FY01
FY99
FY97
FY95
FY93
FY91
FY89
FY87
FY85
FY83
FY81
FY79
FY77
FY75
FY73
FY71
FY61
FY51
0
Cars: Desire to drive cont’d
Between FY91 and FY09, four-wheeler
penetration has increased from 3.5 to 12.9
(per 1,000 people)
Almost 20% of our respondents plan to
buy a car during the next 12 months
Do you plan to buy a car during the next
12 months?
Can’t say
22%
33% of those not looking to buy a car in
the next 12 months say they will do so in
two or three years
No
59%
Rapidly rising car penetration
14
Yes
19%
If not, do you plan to buy in the next two to
three years?
(Cars/’000)
12
10
Can’t say
21%
8
Yes
33%
6
4
No
46%
2
FY09 E
FY07 E
FY05 E
FY03
FY01
FY99
FY97
FY95
FY93
FY91
FY89
FY87
FY85
FY83
FY81
FY79
FY77
FY75
FY73
FY71
FY61
FY51
0
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 26
Credit cards: Low penetration
That more than half our respondents don’t
have credit cards demonstrates India’s low
level of penetration; that 80% of those in our
2007 survey didn’t have cards suggests the
pace of growth
How many credit cards do you or
your chief wage earner have?
One
25%
Two
0%
Three
7%
Average monthly spending on credit cards is
more than Rs2,700; those who have credit
cards are using them actively
>Three
1%
None
58%
65% of our respondents are buying less with
their credit cards; clearly, consumers are more
cautious in this uncertain economic climate
Household’s monthly
spending on credit cards?
Rs4001Rs5000
11%
Rs3001Rs4000
11%
Rs1000Rs2000
24%
Rs2001Rs3000
15%
>Rs5000
18%
Are you buying less or
more using credit cards?
If less or more, by how much?
> 20%
<Rs1000
21%
More
35%
Less
11-20%
Less
65%
0-10%
0
10
20
Source: CLSA Asia-Pacific Markets
Summer 2009
More
anirudha.dutta@clsa.com
Page 27
30
40
50
Looking forward: Still optimistic
Do you expect employment prospects to
improve in a year?
Most of our respondents are optimistic
about the future - not surprising, given
that economic growth is holding up
fairly strongly
Remain the
same
30%
65% expect employment prospects to
improve; only 5% expect them to worsen
Worsen
5%
Improve
65%
Rising prices and unemployment or a fall
in income are their in financial concerns this is consistent with our 2007 survey
What are your main financial concerns?
Medical costs are also a growing financial
concern, as reliance on private health
care increases
Rising prices
Unemployment/
income decline
Education costs are another big worry for
our respondents
Education fees
Medical costs
Housing prices/rents
Pension
Other
(No.)
0
40
80
120
160
200
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 28
Government: Strong vote of confidence
33% say they’re confident about the
government’s handling of the downturn;
41% say they’re not
Do you have confidence in the government’s
ability to handle the downturn?
This approval rate is higher than expected,
primarily due to the standing of Prime
Minister Manmohan Singh
Yes
33%
Can’t say
26%
Confidence in the government is likely
to be even higher since the elections
(our survey was done before the poll
results were declared in May)
No
41%
What should be the government’s top priorities
during the next 12 months?
0
Employment
Prices of food / essential items
Security / Prevention of Terrorism
Education
40
80
120
160
200
(No.)
The new government’s top three priorities
should be: improving employment
prospects; controlling the prices of
food and essentials; and security and
fighting terrorism
Infrastructure
Access to quality healthcare
Property prices
Many also nominated infrastructure as a
key priority for government
Religious and Caste issues
Relations with neighbours (Pakistan)
Access to credit / Loans
Source: CLSA Asia-Pacific Markets
Summer 2009
anirudha.dutta@clsa.com
Page 29
Upcoming CLSA Forums
China Forum 2009
14-16 September, Shanghai
Investors’ Forum 2009
21-25 September, Hong Kong
India Forum 2009
2-4 November, Gurgaon
Japan Forum 2010
22-26 February, Tokyo
Summer 2009
anirudha.dutta@clsa.com
Page 30
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Key to CLSA investment rankings: BUY = Expected to outperform the local market by >10%; O-PF = Expected to outperform the local market by 0-10%; U-PF = Expected to underperform the local market
17/02/2009
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