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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.

Ajit fighting a battle for relevance

Updated: Oct 30, 2024

Ajit

Mumbai: The NCP president Ajit Pawar on Monday filed his nomination papers from the Baramati assembly constituency. Significantly, this time around Ajit Dada made a tactical move, three common women accompanied the Deputy Chief Minister while submitting his nomination papers. Against the backdrop of precarious situations in the landscape of the state, this election has become crucial for Dada to maintain his political relevance.


It is common for any senior political leader to accompany their party colleagues and other prominent people from the vicinity while going to file the nomination. But Ajit Pawar tried to make it a strategic move by taking together women who are beneficiaries of the state government’s newly introduced ‘Ladki Bahin Yojana’. Under the scheme, eligible women would receive Rs 1,500 per month in their bank accounts.


For the first time Ajit Pawar was looking somewhat stressed. No doubt he put the brave face but many things were visible through his body language. After filing the nomination the  NCP chief got emotional while addressing a rally. Pawar alleged that the NCP patron Sharad Pawar had created a split in the family and fielded a candidate against him.


Apparently, Pawar has realised that his Nationalist Congress Party faces an uphill task in the polls. He recently said he did not have to ask for permission while distributing party tickets as he was the saheb (boss). It was a veiled reference to his uncle, Sharad Pawar, with whom he had parted ways in February last year. Ajit Pawar’s frustration level was so high that he asked Union Home Minister Amit Shah to make him chief minister if the BJP-led alliance retained power after the assembly polls, due in November. Ajit later denied the report, saying he only discussed problems faced by farmers.


Ajit Pawar has always shown a desire for power and a yearning for the next chapter of his journey to unfold. Prior to this election he has won all the elections by a sizable margin. This time he is pitted against his own family member. If Pawar loses this battle he will be irrelevant in the state politics.

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