MAM
Downslide continues in September; Consumer Confidence of Indians dips by 0.6 percentage points: Thomson Reuters-Ipsos PCSI
MUMBAI: Consumer Confidence of Indians in September has slipped 0.6 percentage points, according to the latest India Primary Consumer Sentiment Index (PCSI),as measured by Thomson Reuters, in partnership with Ipsos – PCSI had declined by 3.1 percentage points in August 2019 and except for a slight uptick (of 0.6 percentage points) in July 2019, this downward trend has been continuous since May 2019.
The monthly PCSI whichis driven by the aggregation of the four weighted sub-indices, in September shows that at least three of the sub-indices continue to be on downward spiral, with only Economic Expectations Sub Index showing recovery: the PCSI Employment Confidence (“Jobs”) Sub-Indexis down by 1.0percentagepoints; the PCSI Economic Expectations (“Expectations”) Sub Index, is up by 1.4percentage points; the PCSI Investment Climate (“Investment”) Sub-Index has receded by 1.2percentage points; and the PCSI Current Personal Financial Conditions (“Current Conditions”) Sub-Index has fallen by 1.9 percentage points, over last month.
“It is clear, there is a slowdown and Indians are impacted. Since May this year, consumers have been lesser confident month-on-month, about finances, investment and jobs. Hopefully, the recent reduction in corporate tax and early spirit of festivals would arrest the downward spiral and boost the sentiment upward,”says Parijat Chakraborty, Country Service Line Leader, Public Affairs& Corporate Reputation, Ipsos India.
India PCSI 2013-2019 Trend
These are findings of an Ipsos online poll conducted August 23, 2019-September 6, 2019. For this survey, a sample of 500 adults from Ipsos' India online panel aged 16-64 years was interviewed online. As this is an online poll in India, representative of the online community in the country, it is not reflective of the general population; however, the online sample is particularly valuable in their own right as they are more urban, educated and have more income than their fellow citizens and often referred to as “Upper Deck Consumer Citizens” or Primary Consumers. The precision of the Thomson Reuters/Ipsos online polls is measured using a Bayesian Credibility Interval. In his case, the poll has a credibility interval of plus or minus 5.0 percentage points for all adults.
The Thomson Reuters/Ipsos India Primary Consumer Sentiment Index (PCSI), ongoing since 2010, is a monthly national survey of consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments. The Index is composed of four sub-indices: Current Conditions Index; Expectations Index; Investment Index; and, Jobs Index.
Brands
Airtel, Jio, Vi quietly raise tariffs with tweaks ahead of major hike
Airtel, Jio and Vi test subscriber response with subtle plan changes
NEW DELHI: India’s top telecom operators, including Bharti Airtel, Reliance Jio and Vodafone Idea, are quietly reworking their prepaid plans in what appears to be a calculated run-up to a broader tariff hike expected later this year.
Rather than announcing headline-grabbing price increases, the operators are opting for subtle tweaks that are less likely to trigger immediate consumer backlash. Industry observers describe this as a “testing the waters” approach, where small changes help gauge subscriber sensitivity while gradually improving revenues.
Among the most visible moves is plan pruning. Airtel has discontinued its popular Rs 799 pack, widely seen as a high-value offering, while nudging up the price of its Rs 859 plan to Rs 899. The changes may seem marginal, but across millions of users, they translate into meaningful revenue gains.
Reliance Jio, on its part, has taken a sharper route by slashing the validity of its Rs 195 plan from 90 days to just 30 days. The price remains unchanged, but the value per day has dropped steeply, effectively raising costs for consumers without altering headline tariffs.
Meanwhile, Vodafone Idea is restructuring its “NonStopHero” packs, limiting unlimited data benefits to night hours in several circles. The move trims usage flexibility while keeping plan positioning largely intact.
Another common tactic is bundling. Operators are increasingly pairing plans with OTT subscriptions such as streaming services, framing price adjustments as value additions even when the core offering remains largely unchanged.
The broader goal behind these moves is to lift ARPU (Average Revenue Per User), a key profitability metric in the telecom business. Airtel is targeting an ARPU of around Rs 300, up from roughly Rs 250, while Jio is under pressure to demonstrate stronger revenue growth ahead of a potential IPO. For Vodafone Idea, the urgency is more immediate as it seeks higher cash flows to fund 5G expansion and manage outstanding dues.
Industry estimates suggest that these incremental changes are a precursor to a larger, industry-wide tariff hike of 15 to 20 per cent, likely towards the end of 2026. The delay in announcing a full-scale increase is partly due to macroeconomic concerns, including inflation and volatile fuel prices, which could dampen consumer sentiment.
The push to monetise 5G is also gathering pace. After investing more than Rs 3 lakh crore in next-generation networks, operators are expected to gradually phase out free 5G data and reposition it as a premium service.
For consumers, the impact is already visible in small but steady increases in monthly bills. For telcos, however, this is a carefully choreographed build-up, easing users into higher spending before the bigger pricing reset arrives.
