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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.

Mumbai’s Demolished Kingdom

Updated: Nov 15, 2024

Milind Deora

Earlier this year, January sprang a surprise in political circles when Milind Deora, a former Congress Member of Parliament bid adieu to the party to join Eknath Shinde’s Shiv Sena. The ideologies were in sharp contrast and for the sauve South Mumbai-bred Milind, the Shiv Sena’s rough and tough politics seemed like a striking departure from his career graph.


The relationship between the Deoras and Gandhis has been legendary with Murli Deora known for his close relationship with former prime minister Rajiv Gandhi and his wife Sonia. He joined the Congress in 1968 and then presided over the Mumbai party for 22 years. Hailing from a Marwari family with close connections with the business world, Murli was the bridge between the Congress and the captains of the industry. He enjoyed a good rapport with heads of states from different parts of the world and used his diplomacy to attract investment. He was also known to raise funds for the Congress through the business houses that he maintained warm relations with, making him a key asset for his party.


Murli bhai, as he was known in Mumbai and in the party, began his political career as a corporator and then became a mayor in 1977 with support from Bal Thackeray’s Shiv Sena. He led the Mumbai Regional Congress Committee for two decades and effectively strengthened the party in Mumbai. Being elected from the same constituency for seven terms is no mean feat and is a reflection of his popularity in the South Mumbai which he represented in Parliament. He won widespread recognition when, through his efforts, the Supreme Court banned smoking in public places in 2001.


His son Milind entered electoral politics as a Member of Parliament in 2009 and the father-son duo were part of the Manmohan Singh-led government. The senior Deora was the minister for Petroleum and Natural Gas for a long time while his son was a junior minister for shipping. Milind’s brother Mukul, however, has stayed away from politics and is a musician and a film producer.


A three-term Member of Parliament, Milind was once known to be close friends with Rahul Gandhi but relations between the two families seem to have soured with Milind quitting the party. Now a Rajya Sabha MP, he was tasked with managing the Congress’ election campaign for Worli during this year’s Lok Sabha polls. As the two sections of the Shiv Sena fight each other in Worli, Milind is pitted against incumbent MLA Aditya Thackeray. The contest in Worli will see the heirs of two prominent political families fight to win this constituency.

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