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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.

Overworked, Overstretched

Updated: Oct 22, 2024

Maharashtra’s Chief Minister, Eknath Shinde, has long been known for his relentless work ethic, but this dedication has come at a cost. Overexertion has taken its toll on Shinde’s health, forcing him to cancel a crucial cabinet meeting before the model code of conduct ahead of the Assembly election comes into effect and prompting doctors to advise complete rest. This is not the first time the CM has been unwell due to his exhausting schedule, but the recent episode underscores a growing concern: Shinde may be pushing himself beyond his limits.


Well before he staged his coup to become CM, Shinde has cultivated ‘a man of action’ persona: during the 2018 Kerala floods, he reached the water-logged state with boxes of medicines and first-aid tools. Since taking office in June 2022, Shinde has been a man in perpetual motion. Immediately after taking oath as Chief Minister, his schedule had been a whirlwind of tours, meetings, and late-night trips to Delhi. This punishing schedule has continued ever since. His supporters point to his hands-on approach, whether visiting flood-hit regions or overseeing relief efforts in landslide-stricken areas, as evidence of a leader who leads from the front. In one moving instance, in July 2023, Shinde did not merely review the situation in Irshalwadi, a village buried by a landslide; he climbed the steep ascent in torrential rain to reach the settlement, directing rescue operations to show solidarity with rescue workers.


 This ‘field-man’ persona has earned him praise, but has also raised concerns about sustainability. Shinde’s determination to be everywhere has left him sleep-deprived, with his public engagements often stretching into the early hours. His insistence on connecting with every constituent, addressing even minor grievances, has endeared him to the public but strained his physical well-being. Even senior figures in Maharashtra’s government have noticed the toll his work habits are taking.


Deputy Chief Minister Ajit Pawar recently admonished his own party workers for extracting too much work from Shinde. Despite this, Shinde continues to take on more than most politicians would dare. He frequently visits disaster-hit areas in person, often stepping into roles that could easily be delegated to local officials. His recent visit to the site of a fire accident in Chembur, for instance, could have been handled by the Brihanmumbai Municipal Corporation commissioner, but Shinde chose to lead from the front, underscoring his desire to remain connected with the grassroots. The CM’s gruelling pace has now raised concerns about his ability to continue at such a breakneck speed. While his loyalists argue that this commitment is a testament to his rise from the ranks, it is evident that such a schedule is unsustainable. For all his devotion to the role, Maharashtra’s Chief Minister may need to learn that even the most dedicated leaders require rest.

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