New Delhi, (Asian independent) As the Russia-Ukraine war is nearing a month, YouGovs latest data shows that nearly two-thirds of urban Indians (64 per cent) feel the ongoing crisis may have an impact on Indias economy leading to an increase in fuel prices.
Just about the same number (63 per cent) think it will increase the price of essential commodities. These issues are more concerning to Gen X (70 per cent for fuel prices and 61 per cent for the cost of commodities) than their younger counterparts.
YouGov Omnibus data was collected online among 1,527 respondents in India between March 8-14, 2022 using YouGov’s panel of over 15 million people worldwide.
Most urban Indians think a rise in inflation rate will impact their household finances and they will either have to reduce their discretionary expenses (49 per cent), rely on their saving (18 per cent) or take debt (9 per cent) to cover their expenses.
While residents of West and North India are more likely to say that they will cut back on their discretionary expenses, those in South India are most likely than others to tap their savings or take out a loan to cover their expenses.
Apart from this, half fear a third world war (52 per cent) while many foresee volatility in the stock market and a surge in inflation rates (43 per cent and 39 per cent).
Of those who cited the increase in fuel price as a concern, more than a third (36 per cent) of respondents said they might consider taking public transportation instead of using their own vehicles if there is a further increase in the fuel price. The older generation (42 per cent of Gen X respondents) is more likely take this step than millennials (33 per cent) and Gen Z (36 per cent).
While some are planning to switch/buy an EV vehicle (11 per cent) or start using two-wheelers instead of cars (10 per cent), only a few indicated that they would halt their plans of buying a new car (7 per cent).
The Kiev-Moscow war has stoked uncertainty in global trade, affecting the price of crude oil and other commodities. While the direct impact on India will be limited, the combination of supply disruptions and ongoing terms of trade shock is likely to weigh on the economy, resulting in a sharper rise in inflation in the country.
Only 14 per cent of the total respondents indicated that their household finances will not be impacted if the inflation rate in India surges. Millennials are most likely to say this compared to the rest of the population.
