Mumbai: Business channel CNBC-TV18 and global research firm Boston Analytics will jointly introduce the country's first consumer confidence index.
The CNBC-TV18 Boston Analytics Consumer Confidence Index aims to provide policy makers, corporates, market participants, researchers, industry leaders and trend watchers, an insight into the minds of Indian consumers.
The consumer confidence index is defined as the degree of optimism on the state of the economy that consumers express through their savings and spending.
The world's first CCI was introduced in the US in 1985, and has a sample of 5,000 people. It serves as a tool that enables the user to understand the consumer's mindset and thus make an informed assessment about the future course of the economy.
The new index has been designed to reflect aspects of the Indian economy like employment, inflation, savings, spending and real estate through the eyes of the Indian consumer.
Based on a sample size of 10,000 respondents spanning 15 cities in India, the monthly CCI is the largest consumer confidence index in the world. The index will be based on the level of consumer confidence over time on various parameters like current situation, future expectations, inflation, employment, consumer spending, savings and real estate.
"The CCI will not only add a totally new dimension to our programming mix, but more importantly it will provide India Inc with a tool to gauge consumer sentiment, a subject that holds the key to their fortunes,'' says Neel Chowdhury, vice president, marketing, CNBC-TV18 and CNBC AWAAZ.
Rashid Bilimoria, CEO, Boston Analytics said, "Any market driven economy is vastly influenced by consumer spending. For instance, in India, consumer spending accounts for over 60 per cent of the GDP. This definitely explains the need to track consumer confidence in this country.''
As a lead up to the launch of the CCI, CNBC-TV18 will present two introductory episodes at 10:30 PM on 22 February and at 10:00 PM on 28 February.
The first findings of the Index will be presented on CNBC-TV18 on 3 March, 2009.