top of page

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.

Fractured Harmony

Updated: Oct 22, 2024

Communal tensions in Maharashtra are on the rise once again. The most recent flare-up in Amravati is a stark reminder of the fragile social harmony in the state. Twenty-one policemen were injured when a mob demanded action against a Hindu seer who made inflammatory remarks against the Prophet Mohammad in Uttar Pradesh’s Ghaziabad district. Although the police assured the crowd that an FIR had been filed against the seer, the protest escalated into violence, with stones being pelted at the police and damage caused to 10 police vans.

This is not the first time Amravati has witnessed communal tension linked to inflammatory remarks. In June 2022, a chemist named Umesh Kolhe was murdered in the city after sharing a social media post in support of suspended BJP spokesperson Nupur Sharma, who had made controversial comments about Prophet Mohammad. The brutal killing shocked the nation and highlighted how quickly tensions can escalate into violence when religious sentiments are involved.

The tensions are not confined to Amravati. In Bhiwandi, Thane district, unrest erupted after a stone was allegedly thrown at a Ganesh idol during its immersion procession, sparking an altercation between communities. Such incidents of communal violence are getting increasingly frequent, with religious tensions ready to ignite at any provocation. These incidents reflect a growing communal rift that has been exacerbated by political and social factors. Both Hindu and Muslim groups in the state have been mobilizing in response to real or perceived slights, with protests frequently descending into violence.

In the first half of 2023 alone, Maharashtra saw at least seven incidents of communal unrest, triggered by processions, religious sites, and inflammatory social media posts, leading to violent clashes between Hindu and Muslim groups. This recurring violence highlights deeper political, social, and economic tensions intertwined with religious identity. More troubling, however, is the Maharashtra Home Department’s failure to pre-empt or mitigate these conflicts. Law enforcement remains reactive, addressing violence only after it erupts, rather than focusing on prevention or fostering dialogue to address the root causes. In November 2021, a riot had again erupted in Amravati, when a curfew had to be imposed after BJP-led protests devolved into stone-pelting and vandalism.

The cyclical nature of communal violence means that both Hindu and Muslim groups are locked in a perpetual state of grievance and retaliation. Whether it is remarks against the Prophet or provocations during religious processions, both sides justify their actions as responses to perceived slights by the other. Economic factors have further exacerbated this volatile environment. Unemployment is rising, inflation remains stubbornly high, and rural districts like Amravati face acute economic distress. In such an environment, communal tensions offer an outlet for economic frustration, with religious identity becoming a convenient vehicle for expressing broader societal grievances.

Comments

bottom of page