Using a household-level panel data set on Indian households, it is shown that households’ macroeconomic beliefs—their expectations regarding country-level macroeconomic developments—depend on their socio-economic status. Households with higher income and with more educated members are more optimistic not only with respect to the overall future business conditions of the economy but also with respect to their future family finances. In addition to socio-economic status, the rural–urban divide also plays an important role in shaping Indian households’ macroeconomic expectations.
