The data this year points to the resurgence of aspirations despite hard inflation following the pandemic. The good news? The All-India Aspiration Index is now at 87.3, climbing to its highest level since the start of this study in 2018 when it was 87.4.
The Index is up sharply from 84.4 in 2021 and the all-time low of 79.9 in 2020. The bounce-back shows India is well and truly back at the task of chasing its dreams.
Aspirations, whether long-term or short-term, are often shaped by ongoing considerations. This year, India unequivocally told us its top aspiration is to be mentally healthy and happy. One can empathise with this Sisyphean pursuit in two years of despair.
The pandemic scars show. People still want to live close to family, have a nutritious diet, and have long-lasting friendships. India also continues to cherish the idea of home ownership and saving for their children’s education — two goals that have figured prominently in the Index every year.
The big story this year is inflation. Borrowings are up. Savings have stagnated or fallen secularly across demographics or regions. That, and much more, is covered in this report which we hope you will find insightful.
Let’s take a look at some highlights from BankBazaar’s® Aspiration Index 2022:
The 2022 national Aspiration Index® is at 87.3. It has seen a big upswing, nearing 2018 levels for the first time in four years as people learn to put the pandemic behind them. The index continues to be strongly driven by non-material goals, but financial security is never far from mind.
The East regained its crown of the most aspirational region, closely followed by the West. A comparatively moderate impact of Covid the last few years has helped the region hold on to aspirations despite the impact of inflation.
However, households across India present a tough picture. Expenses have gone up for 77% respondents. Wealth Warriors, with bigger liabilities and higher responsibilities, feel the heat the most. Metros (79%) feel the pinch more than the non-Metros (72%). Correspondingly, the reliance on credit to meet monthly expenses has increased for 62% respondents, and savings have plateaued or gone down for almost 80%.
View the fifth edition of the BankBazaar Aspiration Index ® to find out the surprises this year’s study has in store.