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Correspondent

23 August 2024 at 4:29:04 pm

Festive Surge

India’s bazaars have glittered this Diwali with the unmistakable glow of consumer confidence. The country’s festive sales crossed a staggering Rs. 6 lakh crore with goods alone accounting for Rs. 5.4 lakh crore and services contributing Rs. 65,000 crore. More remarkable still, the bulk of this spending flowed through India’s traditional markets rather than e-commerce platforms. After years of economic caution and digital dominance, Indians are once again shopping in person and buying local....

Festive Surge

India’s bazaars have glittered this Diwali with the unmistakable glow of consumer confidence. The country’s festive sales crossed a staggering Rs. 6 lakh crore with goods alone accounting for Rs. 5.4 lakh crore and services contributing Rs. 65,000 crore. More remarkable still, the bulk of this spending flowed through India’s traditional markets rather than e-commerce platforms. After years of economic caution and digital dominance, Indians are once again shopping in person and buying local. This reversal owes much to policy. The recent rationalisation of the Goods and Services Tax (GST) which trimmed rates across categories from garments to home furnishings, has given consumption a timely push. Finance Minister Nirmala Sitharaman’s September rate cuts, combined with income tax relief and easing interest rates, have strengthened household budgets just as inflation softened. The middle class, long squeezed between rising costs and stagnant wages, has found reason to spend again. Retailers report that shoppers filled their bags with everything from lab-grown diamonds and casual wear to consumer durables and décor, blurring the line between necessity and indulgence. The effect has been broad-based. According to Crisil Ratings, 40 organised apparel retailers, who together generate roughly a third of the sector’s revenue, could see growth of 13–14 percent this financial year, aided by a 200-basis-point bump from GST cuts alone. Small traders too have flourished. The Confederation of All India Traders (CAIT) estimates that 85 percent of total festive trade came from non-corporate and traditional markets, a robust comeback for brick-and-mortar retail that had been under siege from online rivals. This surge signals a subtle but significant cultural shift. The “Vocal for Local” and “Swadeshi Diwali” campaigns struck a patriotic chord, with consumers reportedly preferring Indian-made products to imported ones. Demand for Chinese goods fell sharply, while sales of Indian-manufactured products rose by a quarter over last year. For the first time in years, “buying Indian” has become both an act of economic participation and of national pride. The sectoral spread of this boom underlines its breadth. Groceries and fast-moving consumer goods accounted for 12 percent of the total, gold and jewellery 10 percent, and electronics 8 percent. Even traditionally modest categories like home furnishings, décor and confectionery recorded double-digit growth. In the smaller towns that anchor India’s consumption story, traders say stable prices and improved affordability kept registers ringing late into the festive weekend. Yet, much of this buoyancy rests on a fragile equilibrium. Inflation remains contained, and interest rates have been eased, but both could tighten again. Sustaining this spurt will require continued fiscal prudence and regulatory clarity, especially as digital commerce continues to expand its reach. Yet for now, the signs are auspicious. After years of subdued demand and inflationary unease, India’s shoppers appear to have rediscovered their appetite for consumption and their faith in domestic enterprise. The result is not only a record-breaking Diwali, but a reaffirmation of the local marketplace as the heartbeat of India’s economy.

A Tale of Parallels: Uddhav and Rajiv

Uddhav and Rajiv

Uddhav Thackeray finds himself facing one of the most significant challenges of his political career. Interestingly, Thackeray’s path has striking parallels to that of Rajiv Gandhi, former Prime Minister of India, offering a unique lens through which to view his current journey. Both leaders were reluctant to enter politics, both compelled by family circumstances, and both eventually rose to prominent positions against a backdrop of high expectations and complex political dynamics.


Rajiv Gandhi and Uddhav Thackeray came from highly influential families. Rajiv, son of Indira Gandhi, was thrust into the political arena following the tragic death of his mother, Indira Gandhi. Reluctant at first, he was drawn in by a sense of duty to carry forward the family legacy. Similarly, Uddhav Thackeray, son of the Balasaheb Thackeray, initially showed little interest in active politics. Yet, with the passing of his father, he was into the limelight majorly, driven by the need to lead the Shiv Sena and continue the legacy his father left behind.


Both Rajiv and Uddhav faced difficult challenges early on, and their respective styles became a hallmark of their leadership. Rajiv’s political journey was marked by a series of turbulent decisions, some of which are still debated today, but he is remembered with affection as a visionary prime minister who brought a modern outlook to Indian politics. Uddhav, too, has had a rocky road, especially during his tenure as Maharashtra’s Chief Minister. Despite criticism from opposition leaders, he is remembered by many for his calm yet direct approach in handling the COVID-19 crisis. His frequent Facebook Live sessions during the pandemic resonated with the people, as he addressed them with warmth, offering a family touch that endeared him to many in Maharashtra.


The stakes for Uddhav in the upcoming elections are high, and this battle is a litmus test for his leadership. The 2024 Maharashtra Vidhan Sabha election will determine whether he can secure his place as a formidable force in state politics or be overshadowed by recent party splits and opposition forces. The Shiv Sena, under Uddhav’s leadership, faces a significant challenge following the split led by Eknath Shinde, which has fractured the party in ways few could have predicted. The split has left Uddhav’s faction with fewer resources and seats in key areas such as Vidarbha, where the Congress seems to have greater influence in seat-sharing negotiations.


However, Uddhav’s appeal remains strong in areas like Mumbai, Nashik, Marathwada, and parts of the Konkan region. The upcoming elections will be a defining moment for Uddhav Thackeray.

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