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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.

New policy promises sustainable housing

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Mumbai: The state cabinet under Chief Minister Devendra Fadnavis on Tuesday announced the new housing policy that promises sustainable, safe and eco-friendly house for every citizen of the state. The policy with an investment of Rs 70,000 crore. Talking to reporters after the cabinet meeting, Chief Minister Devendra Fadnavis said the policy focuses on housing for the common man with the motto "My Home - My Right".


Fadnavis said the policy prioritises low-income groups, senior citizens, women, industrial workers and students. The chief minister said affordable and inclusive housing for working women, senior citizens and students have been considered, and issues of rental housing and creating land banks have been addressed.


“All stakeholders and schemes will be brought on a single portal, 'Maha Awaas'. Government land will be mapped and made available for housing. Sustainability will be an important factor in housing and will be brought in with modern technology. After 2007, a comprehensive and dynamic all-inclusive policy has been formulated,” the CM said.


He said vertical slums and SRA buildings are being given incentives for rehabilitation. The policy comprises a comprehensive programme from slum rehabilitation to redevelopment, with an investment of Rs 70,000 crore. Fadnavis said that the new policy considers the housing needs of urban and rural areas and it has follows decision making processes based on data, use of latest technology, speed and transparency and social inclusion.


This housing policy comes almost after two decades. The previous housing policy was brought in in 2007. The policy aims at all-inclusive and redevelopment-ready housing at affordable costs. Under the social inclusion clause special schemes for senior citizens, working women, students and industrial labours have been proposed in the policy. One of the schemes proposes renting out houses for these sections for 10 years and transfer ownerships after that. PPP models and use of CSR will be encouraged under such schemes, said a senior CMO official.


The policy proposes to build 35 lakh houses by 2030 and 50 lakh within 10 years after that. It also proposes to build houses based on demand and supply surveys. The State Housing Information Portal (SHIP) will be developed as the central digital platform for all housing related needs. It will have data related to demand and supply of houses, geo-tagging of houses, funds allocation, district-wise land banks and various existing databases like MahaRera and PM GatiShakti.


The policy also proposes development of houses in line with PM’s vision of walk to work and promises to expedite 228 pending schemes by collaboration with various agencies like the BMC, MHADA, CIDCO, MMRDA etc.

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