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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.

Idol Politics

As Mumbai begins earnest preparations for its most iconic festival, Ganesh Chaturthi, politics is once again knocking at the deity’s door. The BJP-led Mahayuti government, with Cultural Affairs Minister Ashish Shelar as its emissary, has made a calculated intervention into the debate over the use of Plaster of Paris (PoP) idols. The policy shift is less about pollution and more about positioning. The Brihanmumbai Municipal Corporation (BMC) elections, long overdue, loom large over every move by the ruling coalition.


Shelar announced that the government would soon formulate a policy to facilitate the immersion of large Ganesh idols, including those made of PoP, while ensuring environmental safeguards. He also claimed that making, selling, or immersing PoP idols was not illegal despite the Central Pollution Control Board’s guidelines discouraging their use and immersion owing to ecological damage to water bodies. But in Maharashtra, especially in Mumbai, few things are as politically potent as Ganeshotsav. And fewer still are as entwined with votes.


This is a deft political calculation. The BJP, in alliance with Eknath Shinde’s breakaway Shiv Sena faction, has long been eyeing a takeover of the BMC — India’s richest municipal corporation — from the clutches of the Uddhav Thackeray-led Shiv Sena (UBT). Ganesh mandals have long been the nerve centres of Shiv Sena power. During the ten days of celebration, these local committees control everything from sound permissions to civic coordination, becoming miniature fiefdoms in their neighbourhoods. Over decades, the Sena built a grassroots network through these festivals by mixing religiosity with local clout.


By voicing support for traditional idol makers and pushing back against CPCB restrictions, the government is appealing to artisan communities and mandals, especially in Mumbai and Pune. The obvious subtext is that BJP is the patron of Hindu tradition. And unlike the Sena factions locked in internecine squabbles, it offers clarity along with subsidies.


Environmentalists will doubtless worry about PoP idols polluting water bodies and harming marine life. While clay idols and artificial tanks exist, they haven’t caught on for large-scale use. The government promises a balance between tradition with eco-safeguards, though just how it plays out in practice is unclear.


But the move will be welcomed by more than just political operatives and idol-makers. The Hindu community, long weary of what they see as overregulation of their festivals, will likely perceive this as overdue course correction. In recent years, environmental rules, court interventions and municipal red tape have disproportionately affected Hindu processions and public celebrations — whether Holi bonfires, Dussehra effigies or Diwali firecrackers. Meanwhile, festivals of other faiths often proceed with minimal interference, fuelling a perception, rightly or wrongly, that Hindu practices are held to a more exacting standard.


It is in this context that Shelar’s remarks strike a resonant chord. His message that faith and tradition will not be sacrificed at the altar of bureaucratic overreach is more than merely administrative. It is almost like a cultural counterpunch. For many in the Hindu community, the move signals that their beliefs are not second-tier.

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