High financial uncertainty despite India growth story

High financial uncertainty despite India growth story



Nearly 88% Indians believe there will be higher financial uncertainty globally five years from now, and prefer the safety of traditional investing instruments like fixed deposits, gold and real estate, reveals the Anishchit Index 2024, a recent survey conducted by Aditya Birla Sun Life Insurance.So, even though the market performance and macro indicators hint at growing confidence in the Indian economy, the survey points to a high degree of uncertainty among Indians. The highest degree of uncertainty is around expenses and debt, followed by health and life emergencies, and then economic, political and climate change concerns.

While nearly 77% feel uncertain about rising family expenses like children’s education, 71% worry about debt and unexpected expenses, and an equal number, 71%, about medical emergencies. Among the salaried, 64% are worried about the uncertainty regarding their career progression, while 61% are uncertain about their long-term financial goals, and 59% about their family’s health and well-being.

This is probably the reason nearly 83% Indians feel financial planning helps manage and control uncertainty. However, nearly 35% don’t personally review their financial situations, depending on professionals like chartered accountants. At the same time, almost two in three Indians seek advice from friends or family instead of subject experts, with 73% saying suggestions by friends, relatives and colleagues influence their insurance investment decisions.

Uncertainty may also be the reason 77% respondents prefer steady, dependable investments even if the return on their investments is comparatively low, with 72% preferring to invest their investible surplus in traditional instruments like gold and real estate, and nearly 69% investing in dual benefit options like insurance policies. Interestingly, 77% also depend on insurance policies as financial safeguards against uncertainty, while 49% rely on fixed deposits.

The Anishchit Index 2024 study was conducted among 7,978 respondents across three age groups, in 20 cities, including Mumbai, Delhi NCR, Ahmedabad, Bengaluru, Chandigarh, Chennai, Hyderabad and Pune, among others.



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