India's buying sentiment improved in the second quarter of the fiscal which ended on 30 September 2016, a TRA Research report said. 

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India's Q2FY16 Buying Propensity Index (BPI) stood at 0.47 (measured on a scale between +1 to -1), increased by 0.05 BPI points from previous quarter, the report said.

N. Chandramouli, CEO, TRA Research, said that the overall the buying sentiment for the quarter remained "fairly positive".

What is BPI?

The Buying Propensity Index is a result of a primary research across 3,000 consumer-influencers across eight cities in India conducted every quarter.

As per the report, it is a measure of the existing buying sentiment or ‘keenness to buy’ of India. It depends on three factors: the transactional and Aspirational Buying Sentiment of the Indian consumer along with the Environmental Buying sentiment of the country.

"The BPI value can range between -1 and 1 ranging from a completely Negative Sentiment to a fully Positive Sentiment", the report said.

Further, speaking about the performance in Q2FY16, Chandramouli said that the Transactional sentiment rose at a steady pace in Q2 and dipped marginally in the month of August. 

"The Aspirational sentiment witnessed a remarkably rise of 0.27 points in September which signals the improvement in need-based buying behavior, while the higher Aspirational sentiment implies improvement in aspirational spending capabilities, and thereby indicating the onset of a good Diwali season", Chandramouli added.