COVID-19 has set us all back in the countless ways. Covid-19 pandemic led the people to re-introspect their saving modules, as their income sources are gradually decreasing and expenses are increasing day by day. As people are protecting themselves and spending more on disinfection and vital healthcare.
As States begin to gradually impose lockdown in attempt to reduce the affect of this pandemic, indicator shows people will be more cautious with their spending. That could potentially lead to a long-lasting shift in spending habits.
Prior to Covid-19 related lockdown restrictions, the financial status of many Indians was strong and earning opportunities were more. But now have fallen for a majority of people for past few months. Even more disturbing is a lot of middle-lower income households as they never recovered financially from the pandemic till now.\
Now, people could begin to change their spending habits in order to financially survive the economic fall out due to this pandemic. More people are embracing cautious nature. Without having really strong, healthy income growth people will need to save more and spend less.
That change has already begun to reflect in past few months. The personal savings rate has already jumped from 40% in last year to more than 70% in current fiscal year. People are now more savings in different instruments like life insurance policy, fixed deposit, RBI bonds, emergency fund and many more.
A new survey finds that responses to covid-19 have shifted the people towards adoption of digitalization to adopt the new normal phase more frequently. During the pandemic consumers have dramatically towards online modes for buying the grocery, work from home virtually, e -learning, video calling and conferencing, internet banking and streaming, binge watching online platform that is OTT like Netflix, Amazon Prime, ZEE 5 and many other to meet the entertainment needs.
Social distancing is currently the most effective way to slow the spread of virus until and unless whole population get vaccinated. As a result of which digitalization has stepped in to the bridge the gaps left by mandatory social distancing measures. With digital tools and technologies it would have been possible for us to stay back at home away from shop, school, crowded place and more. Digitalization is keeping society and business afloat during the pandemic through remote work, online shopping, digital health solutions, digital content cconsumption
“Covid-19 is unraveling decades of progress of country, please help to stop the setback for people in crisis.”