Inflation takes away 'feel good factor', one-third Indians suffering: Survey

New Delhi - High inflation and moderate economic growth seem to have taken away the "feel good" factor for many Indians.

Gallup's Financial Wellbeing Index, released on Monday, showed that 31% of Indians rated their present and future lives as "suffering" compared to 24% in 2011. Similarly, only around 13% said that they are "thriving" compared to 21% a year ago.

The biggest jump in the "suffering lot" is in the middle 20% population, where the proportion rose from 15% in 2011 to 32% now. In case of the richest 40% the numbers went up from 10% a year ago to 22% now, while the smallest jump was in the poorest 40% surveyed by the agency, where the increase was of the order of four percentage points this year to 38%.

The economy has slowed down in recent months, led largely by government inaction and high interest rates, prompting many companies to postpone projects or relocated to other markets to pursue higher growth ambitions. As a result, job creation has also suffered and the pace of income growth has moderated.

India's Financial Wellbeing Index score of 29 "illustrates the economic struggles many Indians are experiencing at the personal and community level",Gallupsaid. There was a political message too with 73% respondents saying that corruption is widespread in government.

"Given uncertain economic times ahead for both the country and the region, leaders need to focus their policies and invest in areas such as education, creating a more favourable business environment and in general employment," the agency said.

After all, the country's score is well below the Asian median of 38 and much lower than China (42) and Brazil (40).

The other notable finding was that 36% of therural populationsaid that they were suffering compared to 21% in urban areas.

"Education also affects Indians' life evaluations. The least educated are among the most likely to be suffering at the least likely to be thriving," said Gallup, which made public its findings on Monday. At least 62% in the education segment which had not cleared senior secondary exams said they were "struggling, compared to 56% with college and higher education.

But is the economic situation improving? About 43% say it's getting better, while 39 rated it as getting worse. Where the score has deteriorated is this being a good time to find a job in their communities, with 31% disagreeing.

Of those employed, 8% said they were engaged, while 32% are "actively disengaged".

"The key factors affecting Indian citizens' wellbeing are income, education, and employment, all linked and influenced by the workplace," said Gallup chairman and CEOJim Clifton.

source: TOI