March 22nd, 2022, Sonika Choubey
An increase in fuel prices and rise in the price of everyday commodities are cited as the top concerns
As the Russia-Ukraine crisis intensified, YouGov’s latest data shows that nearly two-thirds of urban Indians (64%) feel the ongoing crisis may have an impact on India’s economy leading to an increase in fuel prices. Just about the same number (63%) think it will increase the price of essential commodities. These issues are more concerning to Gen X (70% for fuel prices and 61% for the cost of commodities) than their younger counterparts.
Apart from this, half fear a third world war (52%) while many foresee volatility in the stock market and a surge in inflation rates (43% and 39%).
Of those who cited an increase in fuel price as a concern, more than a third (36%) 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% of GenX respondents) is more likely to take this step than millennials (33%) and Gen Z (36%).
While some are planning to switch/buy an EV vehicle (11%) or start using two-wheelers instead of cars (10%), only a few indicated that they would halt their plans of buying a new car (7%).
The conflict between the countries 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.
When asked about this, most urban Indians think a rise in the inflation rate will impact their household finances and they will either have to reduce their discretionary expenses (49%), rely on their saving (18%) or take debt (9%) 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.
Only 14% 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.
When asked about their views on the crisis, four in five (43%) want India to maintain a neutral stand in the Russia-Ukraine dispute. Almost as many (38%), however, want the government to offer humanitarian aid and support to Ukraine. Only a few (4%) think India should refrain from providing any assistance.
While Indians have a mixed view about offering help, a vast majority (63%) of urban Indians support India’s abstention from UN General Assembly’s vote against Russian aggression.
YouGov Omnibus data was collected online among 1527 respondents in India between March 8th-14th, 2022 using YouGov’s panel of over 15 million people worldwide. Data is representative of the urban adult population in the country.