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....

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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.

Ashok Chavan: A Rocky Road Ahead

Abhijit Joshi
Oct 20, 2024
2 min read

Updated: Oct 21, 2024

The Congress party has been fortunate in Maharashtra, where political families like the Thorats, Shindes, and Gaikwads have remained loyal over the years. However, after the 2014 Modi wave, a few Congress loyalists such as the Vikhes and Deors gradually drifted towards the BJP or other factions. Despite this, the Chavan family from Nanded, known for their unwavering loyalty to the Gandhi family, stayed with Congress through thick and thin. Ashok Chavan, in particular, was a trusted leader within the party.

But things took a turn when the fear of ED investigations allegedly caused Ashok Chavan to switch sides to the BJP. While everyone knows this chapter of history, the bigger question now is: What lies ahead for Ashok Chavan?

The upcoming state elections will be a true test for Ashok Chavan. His internal and external battles are intensifying, especially with Ravindra Vasantrao Chavan contesting the Nanded Lok Sabha bypoll after his father’s death. The situation became more complicated when Chavan’s brother-in-law, former Nanded MP Bhaskarrao Patil-Khatgaonkar, along with ex-MLA Omprakash Pokarna and Minal

Patil-Khatgaonkar, rejoined Congress after initially following Chavan to the BJP. After his resignation from Congress, Ashok Chavan was expected to bring political acumen and influence to the BJP. But so far, it hasn’t worked out. He couldn’t secure a win for BJP in Nanded, a seat that was once seen as a sure victory for the party. This failure was a major setback, especially when BJP’s leadership was unsure about other victories in the state during the Lok Sabha elections.

Chavan’s second challenge came when he failed to manage the Maratha reservation agitation led by activist Manoj Jarange-Patil. As a Maratha leader, Chavan was expected to mediate and calm the situation, but he was unable to do so, leaving the state BJP leadership dissatisfied.

To make matters worse, Chavan has not made any significant impact within Congress either. In fact, his own brother-in-law, Bhaskarrao Patil-Khatgaonkar, returned to Congress, signaling Chavan’s diminishing influence even among his closest allies.

Chavan’s future in BJP looks uncertain. His daughter, who has been involved in social work, is also eyeing the upcoming state elections. But whether her efforts will translate into political success remains to be seen.

1 Comment

Pramod Sawant

Oct 21, 2024

Perfect analysis.