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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.

Congress and Coalition Politics: A Legacy of Instability and Opportunism

The grand old party’s opportunism and the rivalries of Bihar’s backward-class leaders have long entrenched a culture of political instability in the state.

Satish Prasad Singh was Bihar’s first OBC Chief Minister for just five days before his government was toppled.
Satish Prasad Singh was Bihar’s first OBC Chief Minister for just five days before his government was toppled.

The politics of Bihar has always been characterized by alliances and realignments, with the Congress party playing a particularly active role. This political manoeuvring often proved detrimental to the stability of governments, especially those led by backward classes. The Congress party’s repeated strategy of toppling governments and creating weak administrations has fuelled political instability in Bihar, hindering the state’s development. Its role was crucial in deliberately sowing discord between OBC leadership and other social groups to retain power.


Leaders from Bihar’s OBC community, who have been experts in political alliance-building from the beginning, partnered with Congress to form and dismantle governments. This was a key aspect of their political strategy right from the start. The cycle of backward-class chief ministers coming to power was also a result of such political bargaining. Today, the Congress party claims to lead OBC politics, but it must remember that when the first OBC chief minister emerged in Bihar, it was the Congress, in cahoots with some backward-class leaders, that toppled his government within just five days, clearly proving that opportunism outweighed stability in the game of power.


Five-day wonder

Turning the pages of the state’s political history, we turn to Satish Prasad Singh, born into an OBC family, who made a remarkable mark on January 28, 1968 when he was crowned Chief Minister of Bihar. He became the first OBC Chief Minister and the head of non-Congress coalition government in the state. Until then, power typically remained with the Bhumihar and Rajput communities, but now it was handed to Satish Prasad Singh, who hailed from the Koeri community. The OBCs had already established a stronghold in Bihar’s politics just one decade after independence. Yet, Singh’s government lasted only five days due to political conspiracies and internal conflicts within the backward class, with Congress also playing a significant role in this power shift.


Within 10-15 years of independence, the politics of alliance and realignment had taken firm root in Bihar. This political strategy paved the way for a major transformation by briefly elevating an OBC chief minister to power. The pioneer of this path was Satish Prasad Singh, born in 1936 into a farmer family in Bihar’s Khagaria district. Educated in Munger, he was known for leading societal change by marrying across caste lines during an era when such unions were rare. His reputation was that of a rebel with socialist beliefs. After leaving active politics, he even produced and acted in a film titled ‘Jogi Aur Jawani.’


Hidden agendas

In Bihar’s political corridors, it is said that Satish Prasad Singh was not an accidental chief minister but part of a well-thought-out plan to dismantle the dominance of upper castes and assert the political strength of the backward classes. However, the truth of this remains a subject people avoid, as if the real story has been lost to history. The question also arises that why did a strong-willed socialist leader like Singh serve for only five days as Chief Minister? To answer this, one must revisit history. In 1967, when the non-Congress coalition government was to be formed, some leaders in the alliance opposed making Karpoori Thakur as the Chief Minister, who was also from the OBC community. Instead, consensus was reached on the elderly freedom fighter Mahamaya Prasad, belonging to the Kayastha community, as a compromise candidate. Even Karpoori Thakur and Dr. Lohia accepted this just to ensure a non-Congress government was formed.


In March 1967, the United Legislative Party chose Mahamaya Prasad Sinha as the chief minister, with Karpoori Thakur as his deputy. This was Bihar’s first non-Congress government, supported by all anti-Congress parties, dominated by the Sanyukt Socialist Party (SSP).

Congress leader and former Bihar CM K.B. Sahay addressed a meeting. The Congress party’s repeated strategy of toppling governments and creating weak administrations fuelled chronic political instability in Bihar.
Congress leader and former Bihar CM K.B. Sahay addressed a meeting. The Congress party’s repeated strategy of toppling governments and creating weak administrations fuelled chronic political instability in Bihar.

Dr. Bideshwari Prasad Mandal, popularly known as B.P. Mandal, elected from SSP to the Lok Sabha, resigned and joined the Mahamaya-Karpoori government as a minister. He was then heavily reprimanded by Dr. Lohia, leading to his resignation from the state ministerial post and a fallout with Lohia. Similarly, senior SSP leader Jagdev Prasad Verma also clashed with Lohia over party policies. It is said Jagdev Prasad was less upset about not becoming a minister himself than he was about junior leader Upendra Nath Verma from his own Kushwaha community receiving the ministerial role. This sowed further dissatisfaction, leading B.P. Mandal and Jagdev Prasad to leave the SSP and create a new party called Shoshit Dal, led by Satish Prasad Singh.


During this time, the Mahamaya government launched a campaign against corruption, forming the Ayyar Commission to investigate Congress leaders and former chief minister K.B. Sahay, along with his associates Mahesh Prasad Singh, Satyendra Narayan Sinha, Ram Lakhan Yadav, Ambika Sharan Singh, and Raghavendra Prasad Singh.


Congress leaders K.B. Sahay, Satyendra Narayan Sinha, and others leaders sought to overthrow the Mahamaya-Karpoori government. Disgruntled B.P. Mandal and Jagdev Prasad joined forces with them. Political circles say B.P. Mandal and Jagdev Prasad were assured by K.B. Sahay and Satyendra Narayan Sinha that if they split from SSP, they would receive Congress’s full support. Thus, Congress leaders K.B. Sahay, Mahesh Prasad Singh, Satyendra Narayan Sinha, Ram Lakhan Yadav, and Ambika Sharan Singh succeeded in toppling Bihar’s first non-Congress government. Tyagamurti R.L. Chandapuri also supported B.P. Mandal in this. This Congress cunningness kept Bihar’s politics unstable and crisis-ridden. Chandapuri’s interviews clearly reveal Congress’s conspiracy to topple the government to protect its leaders from corruption charges, with the backing of backward-class leaders.


Political opportunism

As Bihar heads into a key Assembly election, one would do well to recall that the Congress party has widely used the politics of alliance and realignment, especially to weaken or topple backward-class-led governments. This strategy has been harmful not only for political stability but has also come in the way of development and public welfare. The frequent breaking of coalitions, party splits and political self-interest of leaders have pushed Bihar’s politics into chronic instability.


True political stability in Bihar can only come through proper utilization of OBC leaders’ ambitions. Otherwise, the legacy of alliance politics will continue to hamper Bihar’s political and economic growth. Bihar needs a new political culture - one that is sustainable, transparent and development-sensitive. A coordinated effort by all classes and communities is essential to shift from manipulative politics to a politics of development. Only then can Bihar truly transform into ‘Viksit Bihar.’

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