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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.

MNS’s Worli gambit: Family feud, political opportunity

Updated: Oct 30, 2024

MNS

Mumbai: The biggest political battle is going to be fought in the Worli Assembly constituency in this election. The Maharashtra Navnirman Sena (MNS) chief Raj Thackeray has asked his party workers to ensure that its candidate Sandeep Deshpande defeats his nephew and Shiv Sena (UBT) nominee Aaditya Thackeray at any cost.


“Aapan Worli Jinkalich Pahije (We must win Worli),” Raj reportedly told the MNS workers soon after his nominated Deshpande for the high-profile seat.


There may be a family rift or a calculated political risk behind Raj’s Worli gambit. This move will definitely intensify the family feud but if the MNS could win this battle that will give the party a much-desired fillip ahead of the municipal elections.


According to sources, Thackeray had directed his sainiks to do a survey of Worli constituents and understand the problems faced by locals. However, for the past three months, the MNS has been actively engaging with the local community in Worli through a series of dialogue programs.


“Sandeep Deshpande has been actively campaigning since June, noting down the concerns of the residents to address them, is most likely to remain the face of the party in Worli against Aaditya Thackeray. Following which he was being nominated by MNS chief, Raj Thackeray,” said a source.


Worli is a hub of several business, along with the costliest properties and several tenements (chawls) in dilapidated condition. A section of the voters believes that Aaditya’s ‘vision’ for developing Worli could be his biggest plus point.


Deshpande pointed that people living in these dilapidated chawls are awaiting redevelopment. “These are Bombay Development Department [BDD] chawls and police colonies. There are slum rehabilitation projects on hold, several redeveloped buildings are yet to provide monthly rentals to residents. Aaditya Thackeray has not visited the residents in the last five years and is not easily accessible to people,” he said.


In the Lok Sabha election held in May, the Shiv Sena (UBT) candidate Arvind Sawant had secured a margin of 6,715 votes in Worli Assembly segment. The MNS sees this as a great opportunity to make inroads in the constituency.


“In 2017 municipal corporation polls, MNS secured around 30,000 votes from Worli. This is a good reminder that we have dedicated to MNS in this constituency,” Deshpande said.

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