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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.

It’s Time to Put a Brake on the Plastic Pollution Crisis

Updated: Oct 21, 2024

It’s Time to Put a Brake on the Plastic Pollution Crisis

India produces approximately 9.3 million tonnes of plastic waste every year. This is much more than what our neighbours China and Pakistan do. This growing problem is due to uncollected municipal waste. It poses a serious threat to both the environment and public health.

If we think on a global scale, India generates nearly 20 percent of the world’s total plastic waste. To put this into perspective, the amount of waste produced in India could fill approximately 604 Taj Mahals. If laid end-to-end, the total length of global plastic waste would encircle the globe over 1,500 times.

A recent University of Leeds report, published in Nature, utilised advanced AI models to track plastic waste across over 50,000 municipalities globally. It reveals that more than 90 percent of this waste is municipal, with over two-thirds of the world’s plastic pollution stemming from uncollected municipal waste. This problem is further exacerbated by the fact that 1.2 billion people-15 percent of the global population-lack access to essential waste collection services, worsening both environmental and public health impacts.

Plastic pollution has severe environmental consequences. It ends up in rivers and oceans, risking the marine ecosystem. Animals and birds often mistake plastic for food, leading to severe injuries and, in many cases, tragic deaths. Because plastic does not decompose easily, it remains in natural habitats for an extended period, causing long-term pollution. It has also been revealed that most of the plastic waste is burnt uncontrolled. This adds to the problem of air pollution.

Apart from the environmental harm, poor communities in various parts of the world bear the brunt of plastic pollution. People in these areas are exposed to harmful chemicals and plastic-burning residue. This leads to respiratory illnesses and other health issues. Improper disposal of plastics after their use could contaminate drinking water and end up harming public health.

The Indian government has taken various decisions and initiatives to reduce plastic usage. Measures like banning single-use plastic have faced various challenges. Major contributors to this are rapid urbanisation, inadequate waste management systems, and consumer habits. Other factors include unawareness or misinformation among vendors and consumers alike.

The absence of government incentives for manufacturers to produce eco-friendly packaging, coupled with a lack of regulatory mechanisms to monitor its use, hinders the green future progress. Eco-friendly packaging is often more expensive and less durable than plastic, which discourages both vendors and consumers from making the switch.

Despite the challenges, a few renowned companies are shifting towards more sustainable packaging solutions. New packaging innovations are being implemented that reduce plastic use by 90%. Paper-based packaging is in high demand to reduce plastic to align with global sustainability goals. However, this change comes with a set of challenges. Paper composites often contain non-fibre materials, complicating recycling. Eco-friendly alternatives may have a shorter shelf life and higher costs, hence making them less appealing to vendors.

While India still has a long way to go in dealing with its plastic pollution crisis, there are a few silver linings. Companies are developing recyclable materials, and global trends are promoting more sustainable practices. Nonetheless, greater government support is necessary to promote the use of eco-friendly alternatives. It is crucial to strengthen regulations, provide incentives to manufacturers, and raise public awareness to address the problem at its core. India can reduce its plastic footprint and safeguard both its environment and its people with collective efforts.

Recent innovations suggest that with sufficient investment in the necessary infrastructure and the development of effective recycling strategies, nearly two-thirds of plastic waste could be recycled. This improvement in recycling capabilities could reduce environmental stress by 20 to 50 percent.

However, mere technological interventions won’t work alone. It will also need the strong support of a robust social movement to stop the menace. The ever-growing consumerism will need to be replaced with traditional Indian values and a strong Indian ethos to curb this ever-increasing issue of plastic waste.

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