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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.

Infrastructure Illusion

Updated: Oct 21, 2024

Mumbai, India’s bustling financial capital, has long been synonymous with traffic congestion and torturous commutes. Despite an array of infrastructure projects that promise to ease the city’s chronic congestion, the plight of its daily commuters remains largely unchanged. The city’s congested roads, overcrowded trains, and perpetually delayed buses are a daily ordeal for millions. While the Coastal Road and the Mumbai Metro offer glimmers of hope, they have not yet transformed the commute. The blame lies partly with the patchwork approach to urban planning and partly with the government’s lagging pace in addressing the core issues that plague Mumbai’s transport system.

The city’s broader public transport system remains fragmented, with inadequate integration between buses, trains, metros, and other modes of transport. The failure to establish a unified ticketing system and synchronize schedules leaves commuters with a disjointed web of options. Furthermore, the city’s streets are plagued by illegal parking, encroachments, and poorly maintained roads, all of which exacerbate congestion. The Brihanmumbai Municipal Corporation (BMC), notorious for its inefficiencies and corruption scandals, has yet to fully address these fundamental issues. Without stringent enforcement of traffic regulations and a commitment to maintaining road infrastructure, the benefits of new projects risk being undermined.

For Mumbai to truly emerge from its traffic nightmare, the government must adopt a more holistic and forward-looking approach. This means accelerating the completion of all planned Metro lines and ensuring they are seamlessly integrated with other transport modes. Expanding pedestrian-friendly infrastructure, such as wider sidewalks, dedicated cycling lanes, and safe pedestrian crossings, could also alleviate pressure on the roads. Additionally, congestion pricing — a strategy successfully employed in global cities like London and Singapore — could discourage unnecessary vehicle use in the most congested areas during peak hours if properly implemented with necessary manpower.

Finally, environmental sustainability must be a core consideration in all future projects. Mumbai’s susceptibility to flooding and other climate-related challenges makes it imperative that new infrastructure is designed with resilience in mind. Green spaces, adequate drainage systems and adherence to environmental norms will not only improve traffic flow but also enhance the city’s overall liveability.

Mumbai’s recent infrastructure surge offers hope, but without a comprehensive strategy that addresses the root causes of its congestion, the city’s traffic woes will persist. The state government must move beyond short-term fixes and work towards a cohesive, integrated transport system that serves all Mumbaikars. Only then can the city truly fulfil its potential as India’s gateway to the world, with a transport network that is efficient, sustainable and worthy of its status as a global metropolis. Until then, the daily grind of gridlock will remain a stark reminder of the work that still hangs fire.

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