Splurge surge even in times of inflation

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Even in times of inflation, Delhiites are on a buying spree. Be it the petrol price hike from `58.88 to `68.80 in just six months or soaring prices of luxurious commodities, Delhi just doesn’t stop splurging. Indicating higher living standards in the city, the ‘Delhi Statistical Handbook 2011’ shows that there has been a substantial growth in spending. According to the handbook record, Delhi added 1 crore more mobile connections during 2010-11 and consumed over 1.63 crore cases of liquor and beer in 2010 alone. Besides this, around 5 lakh new vehicles were registered in 2010-11 alone.
Delhi-based economists say that increase in income and improved infrastructure are the reasons behind this growth in purchasing power. Rajeev Kumar, economist and secretary general of FICCI says, “Delhi is the fastest growing city in the country. It is the result of the developments around Commonwealth Games and NCR. And the economic growth in NCR has resulted in high purchasing power, which leads to higher consumption. The economic growth in NCR has been rapid and above the national average. Moreover, this demonstrates the fact that as income and requirements of Delhiites is on the rise, inflation is not the bigger problem.”
Sunil Sinha, head and economist, Crisil, also feel that growth in different degrees is happening all across the country. “There was a time when urban area was the main hub of such high lavish growth, but now the pivot has shifted to the rural areas too. The consumption level has gone up as the income level has gone up across India. And because of this, even though the inflation is high, there is greater level of tolerance among Indians today as compared to two decades ago,” he says.
“The position of the middle class is dramatically different. Today, there are more earning hands in the family and people are not just dependent on one person to survive. This has improved the standard of living and purchasing power,” he further adds.
In context of Delhi, the standards of people will always be above average, feel experts. “Delhi has a large number of corporates and multinationals that are generating huge incomes. Many youngsters are joining them and it’s adding up as an attractive payslip for them. It’s like a handsome amount of pocket money for them, which they are spending on their lavish needs including cars, gadgets, liquor etc. Even in the government sector, the salaries have become much better. As incomes are better, people have the means to fight the inflation shocks and live life king size,” says Sunil.
Tarun Vaid, user specialist, online marketing, Snapdeal, says, “There are many growth opportunities, creative fields and jobs in the markets that youngsters are looking forward to. Inflation and petrol price today has little effect on the average Delhiite. I got my car in the second year of my job and have all the necessary equipment and gadgets that I always wanted to buy.”
Ramneek Paintal, a socialite who purchased two hi-end motor vehicles recently, says, “Delhities have a lavish lifestyle, which is better than other metro cities including Mumbai and Kolkata. Also, Delhiites believe in showing off more to highlight their social status and standard. Splurging on weddings, card parties, Diwali parties have gone up drastically this year. I don’t think recession can ever pinch Delhi’s high spenders,” she sums up.