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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.

Mahayuti Avenges Lok Sabha’s ‘Panipat’

Updated: Nov 25, 2024

BJP shines in its best-ever run in State; allies Eknath Shinde’s Shiv Sena and Ajit Pawar’s NCP come into their own, as Mahayuti onslaught leaves MVA in tatters

Eknath Shinde

Mumbai: The ruling Mahayuti resoundingly avenged its Lok Sabha debacle, staging a stunning comeback in Maharashtra’s Assembly polls by sweeping 230 of the 288 seats. This emphatic performance was powered by the BJP, which recorded its highest-ever seat tally in the state, reshaping the political landscape and leaving the opposition Maha Vikas Aghadi (MVA) in tatters.


Belying opinion poll predictions of a tight contest, the Mahayuti, and the BJP in particular, staged a momentous comeback like no other in the annals of Maharashtra’s political history paving the way for Devendra Fadnavis to be a natural claimant to the Chief Minister’s post.


The BJP led by Fadnavis, which garnered more than 135 of the 149 seats it contested on, surpassed its 2014 Assembly poll tally of 122 seats achieved during the peak of the Modi wave. The saffron party’s rank and file, buoyed by a historic victory, are in no mood for compromise, unlike 2022 when Eknath Shinde was anointed Chief Minister after his coup despite the BJP’s commanding the greater number of MLAs.


That said, CM Shinde’s Shiv Sena and Deputy Pawar Ajit Pawar’s NCP performed creditably, vastly enhancing their dismal Lok Sabha strike rates by snaring 56 and 41 seats respectively – evidence of a superbly coordinated ground campaign by the Mahayuti.


Shinde Sena’s crackerjack performance, which outdid the combined performance of the three MVA parties, settles the question of which faction is the ‘real’ Shiv Sena – a debate that has simmered since his dramatic split from Uddhav Thackeray’s party in 2022. By orchestrating this win, Shinde has finally shed the perception of him being a ‘BJP puppet,’ asserting himself as a credible force in Maharashtra politics.


Ajit Pawar’s performance was equally noteworthy. His eight consecutive Assembly win in the keenly contested Baramati Assembly segment was particularly personal as he routed his nephew Yugendra Pawar (aligned with the Sharad Pawar-led NCP(SP) by a whopping margin, delivering a stinging blow to the elder Pawar’s political legacy.


While the Mahayuti conducted a coordinated and focused campaign, refraining from ad hominem attacks and emphasizing development, the MVA floundered due to complacency, infighting, and poor candidate selection. Prolonged seat-sharing negotiations within the opposition alliance led to delayed campaigning, leaving many constituencies poorly covered. The Congress and Shiv Sena (UBT) were also plagued by ego clashes and an inability to project a cohesive vision, which alienated voters seeking clarity and competence.


The MVA’s misplaced focus on national issues, such as Congress leader Rahul Gandhi’s repeated targeting of industrialist Gautam Adani, further undermined their appeal. These issues failed to resonate with voters in Maharashtra, who prioritized local governance and development.


The electoral rout saw several MVA stalwarts like former Chief Minister Prithviraj Chavan (Karad South) and senior Congressman Balasaheb Thorat (Sangamner) suffer humiliating defeats. These setbacks have raised questions about the MVA’s future and the ability of its top leaders to rejuvenate the alliance.


Conversely, the Mahayuti showcased its depth and cohesion. While top leaders like Fadnavis, Eknath Shinde, and Ajit Pawar won by huge margins, second-rung leaders such as Nitesh and Nilesh Rane also performed impressively. Even debutantes like Srivijaya Chavan (Bhokar) and younger leaders like Aditi Tatkare (Shrivardhan) won emphatically, underscoring the Mahayuti’s ability to bury their internal differences and mobilize voters across diverse demographics.


The Mahayuti tsunami swept away that the so-called ‘third front’ in the form of the ‘Parivartan Mahashakti Aghadi’, with its prime force - Prahar Janshakti Party leader and sitting MLA Bacchu Kadu - biting the electoral dust in Achalpur in Amravati district.


The electorate also delivered a harsh verdict on flip-floppers and emotive campaigns. Raj Thackeray’s Maharashtra Navnirman Sena (MNS) failed disastrously, with his son Amit Thackeray crashing in his debut from Mahim. Likewise, agitators like Manoj Jarange-Patil, who relied on caste-based appeals, were decisively rejected as voters aligned with the Mahayuti’s promise of development.


Most notably, the election results mark a remarkable comeback for Devendra Fadnavis, demonstrating his resilience and acumen in the State’s politics and a figure to be reckoned on par with Sharad Pawar at his canniest.

Written off after the BJP’s Lok Sabha loss, Fadnavis has emerged stronger than ever, demonstrating his ability to adapt and lead in challenging circumstances.


The results place the BJP in an enviable position, as it can retain power should one of its two key allies—Shinde’s Sena or Ajit Pawar’s NCP—decide to exit the Mahayuti over potential disagreements on the Chief Minister’s post. However, given the emphatic nature of this mandate, it is unlikely that either ally would risk breaking away at this stage.


While the question of who will be Maharashtra’s next Chief Minister now looms large, BJP leader Amit Shah has sought to pre-empt internal discord by emphasizing unity within the alliance. With the largest seat tally within the Mahayuti, it is advantage BJP for the top post.

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