India’s buying propensity improves in Q2

India’s Q2 2016 Buying Propensity Index (BPI) stood at 0.47, (measured on a scale between +1 to -1), up 0.05 BPI points from last quarter. The BPI is a result of a primary research across 3,000 consumer-influencers across eight cities in India conducted every quarter by TRA (Trust Research Advisory). N Chandramouli, CEO, TRA Research, says, “The Buying Propensity Index of Q2 2016 stood at 0.47, higher compared to last quarter. 

Overall the buying sentiment for the quarter remains Fairly Positive. A deeper analysis shows that the transactional sentiment rose at a steady pace in Q2, dipping only very slightly in the month of August.” “The aspirational sentiment witnessed a remarkably rise of 0.27 points in September which signals the improvement in need-based buying behaviour, while the higher Aspirational sentiment implies improvement in aspirational spending capabilities, and thereby indicating the onset of a good Deepavali season.” he adds. 

He goes on to explain, “In several segments of the market, almost 40 per cent of the annual sales comes just from business carried out during Deepavali. The festival will surely trigger more sales across the market. The full benefit of the rate cut has not yet been passed on to the customer. Once that happens, the buying sentiment will also be affected in a positive manner. The GST should also bring about a fall in prices across many sectors.”