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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.

Logjam over Mahayuti seat-sharing continues

Updated: Oct 21, 2024

Sources indicate that BJP to get 157 seats whereas Shiv Sena to get 78 and NCP 55


Logjam over Mahayuti seat-sharing continues

Mumbai: Even as the date to state filing nominations for Assembly elections is approaching the seat sharing between the constituents of the Mahayuti is yet to be finalised.


Chief Minister Eknath Shinde, who had stayed back for a few meetings in the national Capital after his meeting with Union Home Minister Amit Shah, told the media that all the coalition partners have reached a consensus over most of the assembly seats and issues related to only about a 30-35 seats remains to be resolved. He also expressed confidence that the issues will be resolved soon and that the Mahayuti shall win the state elections.


Deputy Chief Minister Ajit Pawar, who was at Nashik on Saturday after the late night meeting in Delhi with Shah, too said that everything is going smooth in the alliance. Pawar, after visiting the Tryambakeshwar temple in the morning, said that the CM and the two DCMs shall address a joint meeting soon to reveal the details of seat sharing pact.


According to sources, the BJP, that currently has 102 seating MLAs is likely to settle for 157 out of 288 seats. The NCP that has 39 MLAs is likely to settle for 55 seats and the Shiv Sena under CM Shinde is likely to get 78 seats even though they too have only 39 MLAs on their side in the present assembly. There are 13 independent MLAs in the current assembly while 15 seats are lying vacant.


All the parties in the alliance would get their seats where they have sitting MLAs. This means there is no difference of opinion over 180 seats. There are around 80 other seats where the alliance partners are on the second position. There are little differences over these seats also. Real tug of war is going on for the remaining lot of 28 seats, said a senior BJP leader. The issue is unlikely to resolve soon as it will primarily depend upon whom does the seat go to from the MVA side and whom does the MVA field.


Another leader said that the seat sharing in Mumbai has been settled and that the BJP is likely contest 17 or 18 of the 36 seats in the city leaving 15 for Shiv Sena and rest shall go to the NCP. The BJP wants to contest more seats in the state and hence other parties will be compensated with other political positions. That is the reason why it is taking a bit long to conclude the negotiations, the leader said.


“There are no problems. The talks were constructive and are in the final stages,” Shinde told reporters. “We have decided to move ahead with the task at hand. We want to bring the Mahayuti government to power once again and we are confident about it.”

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