High financial uncertainty despite India’s growth story

Nearly 88% of Indians believe there will be a greater financial uncertainty globally in five years’ time, and prefer the safety of traditional investment instruments such as fixed deposits, gold and real estate, reveals the Anishchit Index 2024a recent survey conducted by Aditya Birla Sun Life Insurance.So while market performance and macro indicators indicate 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 such as children’s education, 71% worry about debt and unexpected expenses, and an equal 71% worry about medical emergencies. Among salaried workers, 64% are worried about uncertainty about 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 why nearly 83% of Indians feel that financial planning helps them manage and control uncertainty. However, nearly 35% do not personally review their financial situations, relying on professionals such as chartered accountants. At the same time, nearly two in three Indians seek advice from friends or family rather than experts on the subject, with 73% saying that suggestions from friends, relatives and colleagues influence their insurance policies. investment decisions.

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

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


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