top of page

By:

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.

Not all projects came to BJP-ruled states: EAM

Updated: Oct 30, 2024

Jaishankar

Mumbai: External Affairs Minister S Jaishankar on Sunday refuted the allegations of investments from Maharashtra shifting to Gujarat, saying investors have their calculations and they will see a performing state government which is capable and efficient.


Not all projects have come to the Bharatiya Janata Party-ruled states in the last 10 years, Jaishankar said addressing a press conference at the BJP office in Mumbai ahead of the November 20 Maharashtra assembly polls.


“Competitive federalism is good for the country,” the BJP Rajya Sabha member said.

The India-Middle East Economic Corridor is the most talked about connectivity corridor in the world and the main interface will be in Maharashtra, he said.


Leaders from the opposition parties, including the Congress and the Uddhav Thackeray-led Shiv Sena (UBT), have often claimed that various big investment projects have been moved from Maharashtra to the neighbouring BJP-ruled Gujarat.


Asked about the opposition’s allegations, Jaishankar said the investors also have their own calculations and assessments.


“They will see a performing state government which is capable and efficient. You can’t blame the Centre but also have to check your own merit. Not all projects have come to BJP-ruled states in the last 10 years,” he said.


The Indian government works on the image and branding of the country at the international level, but it is the state governments which will take decisions for employment and investments to come, Jaishankar said.

“The success of a country depends on positive, effective, sincere partnership from the state governments,” he said.


The minister also said Maharashtra needs a government which is on the same page as the Centre since it is the most industrialised state in the country which will play a key role in achieving the objective of “Viksit Bharat”.


Maharashtra’s contribution in the field of industry, technology, airports, ports is immense and increasing investments, logistics, exports, best practices is important for foreign policy, Jaishankar said.

Along with this, infrastructure development and skilled educational policies are also important, he said.

The Centre’s focus is on boosting the economy and employment, the minister added.

Comments

bottom of page