Consumer confidence in India rose to the highest level since November, led by hopes of better business conditions in the future while sentiment towards spending took a backseat, says a Deutsche Boerse report.

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The MNI India Consumer Sentiment Indicator rose 2% to 113.4 last month from 111.2 in March.

The rise in April marks a good start to the second quarter (Q2) after it fell to a record low level in the previous three-month period. If this optimism continues, it could prompt a turnaround in overall consumer spending, the report said.

The rise in confidence was mainly driven by an expectation of better things to come in the future.

The Expectations Indicator, which is made up of three forward-looking components, rose from 115.5 in the previous month to 118.7 in April, the highest since August. Meanwhile, views about the current situation improved slightly to 105.5 after falling to a historical low of 104.8 in March.

"The second consecutive rise in Indian consumer sentiment is a welcome result, following the trend decline over the past year. Much of the improvement in sentiment though hangs on an expected turnaround in business conditions," Chief Economist of MNI Indicators Philip Uglow said.

Uglow added that more tangible factors such as purchase sentiment weakened, not least due to the recent hike in the service tax.

More consumers reported higher income as the reason behind better finances while a rising proportion of the panel credited it to better employment.

Moreover, consumers were less downbeat about the current business environment and greater optimism in the general economy also influenced expectations for business conditions ahead and the outlook for employment.