India, January 2017: India’s Buying Propensity IndexTM (BPI) in December 2016 stood at 0.26, (measured on a scale between +1 to -1), down 0.42 BPI points from November (0.68). The period of November and December has been characterized by just a single event — the demonetization of high-powered currency notes. The Buying Propensity Index is a result of a primary research across 3,000 consumer-influencers across the 8 Tier –I cities in India conducted every quarter.
Chandramouli, CEO, TRA Research, elaborating on the BPI said, “The country’s buying sentiment was consistently recovering since July 2016, but Narendra Modi’s surprise demonetization announcement was the biggest factor causing unnatural fluctuations in the buying sentiment of the country as reflected by the Index. The November 2016 BPI had shown a rise of 19% stemming from the initial euphoria of long-term positive connotations of the announcement.”