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By:

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.

Amravati’s Allegiance Anarchy

Amravati

With barely 48 hours left before Maharashtra heads to the polls, the poll drama and chaos in the Assembly segments in Amravati district in western Vidarbha seems to be far from over.


The shifting of allegiances has never been more intense – or confusing – than in Amravati, traditionally a Congress stronghold. This segment will see a high-stakes contest on November 20 between Sulbha Khodke, the former Congress MLA now aligned with Ajit Pawar’s ruling Nationalist Congress Party (NCP), and two familiar rivals: Sunil Deshmukh of the Congress who is running as the MVA’s candidate, and Jagdish Gupta, a former BJP leader now contesting as an independent.


A month ago, the miffed Congress high command, aware of Khodke’s dalliance with the NCP, had expelled her for anti-party activities. In the last election, Khodke defeated Sunil Deshmukh (then BJP) by over 18,000 votes. Now with Khodke turning her coat, the Congress will be keen to wrest back this seat. With Deshmukh returning to Congress after a 15-yearyear hiatus and a renewed focus on caste-based mobilization, the contest promises to be a fiercely fought one.


The situation is complicated by the presence of Gupta, who is running as an independent after leaving the BJP. Gupta’s decision to contest as an independent adds an extra layer of uncertainty to the race, as he brings with him a significant political following from his time in the BJP. The division of anti-establishment votes could be decisive, with Gupta positioning himself as an alternative to both the BJP and Congress.


Congress’s strategy in Amravati is to lean on its traditional strength which is its deep network of loyalists and activists. The party’s candidates, including former women and child development minister Yashomati Thakur, have substantial local clout. Thakur’s dominance in the Teosa Assembly segment, her stronghold, makes her candidacy a prestige battle for the party (and the MVA).


She has won the seat in successive elections since 2009, fending off challenges even during the Modi wave of 2014. Yet, in the current climate, her position is far from secure. BJP’s candidate Rajesh Wankhade, a former Shiv Sena man, is an experienced challenger, and his move to the BJP has strengthened his position. Congress will need to overcome internal divisions and ensure voter turnout to hold on to this vital seat.


Amravati’s political contest is, at its core, a battle over caste and community dynamics. The constituency is largely rural, with significant representation from the Kunbi, Mali, and Muslim communities. These voters, combined with the Dhangar and Teli communities, represent a broad cross-section of the electorate, and their voting behavior will be crucial in determining the outcome.


For Congress, the key to victory in Amravati and other segments will be its ability to woo the Kunbi and Muslim voters. The BJP’s success will depend not just on its ability to retain urban support but also on its appeal to rural voters, particularly those from the Teli and Dhangar communities.


No campaign in Amravati is complete without a touch of drama on part of the Rana family. This was supplied in due part by BJP leader and former MP Navneet Rana, whose campaign event for Yuva Swabhiman Party candidate for the Daryapur seat, Ramesh Bundile, was marred by violence.


Chairs were thrown at Rana after she finished speaking, promoting her to file a police complaint alleging that individuals from a particular community had disrupted the rally. The episode was symptomatic of the heightened emotions surrounding contests in Amravati, where the stakes are high, and the political climate is boiling despite the winter season.

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