Household incomes better, caution prevails

Change in household income is one of the five components of the Index of Consumer Sentiments

India’s Index of Consumer Sentiments generated by CMIE using its Consumer Pyramids Household Survey rose 2.1 per cent in October 2021. This was the fourth consecutive month of an increase in the index. Sentiments have been improving since July 2021, after the second wave of the Covid-19 pandemic abated. The index has risen 24.5 per cent from its level in June 2021. 

While this is a smart increase in sentiments, the index is still substantially lower than its pre-pandemic level. In February 2020, just before the pandemic hit the Indian economy, the Index of Consumer Sentiments was at 105.3 (base