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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.

Humble Colossus

Updated: Oct 22, 2024

Ratan Tata, who passed away at 86, was a man who spoke in the measured tones of a diplomat and moved with the quiet grace of a statesman. His impact on India’s industrial landscape was seismic. He wasn’t one for bombast, despite commanding one of the world’s most sprawling conglomerates. This reserved and unassuming leader of the Tata Group led with a sense of dignity and responsibility that increasingly feels like a relic of another age. His death marks not just the proverbial end of an era but the departure of a figure whose rare combination of ambition and humility is difficult to imagine being replicated.


For four decades, Tata guided his family’s company through turbulent waters, not only expanding its reach but redefining what it meant to be an Indian multinational in a globalized world. In the 1990s, as India underwent economic liberalization, many business leaders were uncertain about handling the surge of foreign competition. But Tata saw a different horizon. His acquisitions - Tetley Tea, Corus Steel, and the crown jewel, Jaguar Land Rover - were statements of intent. It proved that India was not just opening its doors to the world, but was ready to claim a seat at the table.


Ratan Tata’s ascent to the helm of Tata Group in 1991 marked a turning point for the group’s business. He transformed the centuries-old, largely domestic conglomerate into a global titan, shaping both the company and India’s economic history Yet, unlike many of his contemporaries, Tata did not appear to lust after power or wealth for its own sake. He understood that the true measure of a corporation was not just its profits, but its purpose.


This sense of corporate responsibility permeated the Tata Group under his stewardship. The Tata trusts, which control a significant portion of the conglomerate, were channelled into education, healthcare and social welfare, long before such initiatives became de rigueur among global corporations. Ratan Tata’s vision of business extended beyond immediate returns. He did not just want to make money - he wanted to build a better India.


In a country where corruption often festers in the corridors of business and politics, Tata stood apart. He was, by all accounts, incorruptible. His refusal to bow to the demands for bribes in the early days of his airline venture was one of the more publicized examples of his moral code, but it was emblematic of a larger ethos that shaped the Tata Group. In the often-unscrupulous world of Indian business, where backroom deals and political patronage are part of the game, Tata’s integrity was legendary. He was a man who did not waver, even when it would have been easier to compromise. His legacy will not be found in gilded skyscrapers or flashy acquisitions, but in the livelihoods improved by Tata’s social initiatives, in the global respect won for Indian business, and in the ideals of corporate governance he upheld until the very end.

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