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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.

Pahalgam attack aftermath: Kashmiri students threatened, businesses hit as tensions rise

Updated: Apr 28


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Srinagar: After the Pahalgam terror attack in Jammu and Kashmir on April 22, which killed 26 tourists, Kashmiri students across India have been facing threats, harassment, and violence.


Several incidents have been reported in different states where students were attacked, forced out of hostels, called terrorists, and warned to leave immediately or face consequences.


At Arni University in Himachal Pradesh, hostel doors were broken by outsiders who abused Kashmiri students. In Dehradun, Uttarakhand, a Hindu Raksha Dal video went viral, warning Kashmiris to leave or be killed, forcing many students to pack up and flee.


In Derabassi, Punjab, attackers entered a hostel after midnight, tore students’ clothes, and injured a student with a sharp weapon. In Uttar Pradesh's Prayagraj, some landlords asked Kashmiri tenants to vacate their homes. The Jammu and Kashmir Students Association (JKSA) has called these attacks a targeted hate campaign.


Its convenor, Nasir Khuehami, said this is a planned move to harass Kashmiris and is not just a reaction to the terror attack. He appealed to state governments and national leaders to act quickly and ensure the safety of Kashmiri students. Students have been advised to stay indoors, avoid political arguments, and not post anything sensitive on social media. Police in Dehradun have increased patrolling and removed over two dozen social media posts that promoted violence.


The situation between India and Pakistan has also worsened after the attack. India has accused Pakistan of sheltering terrorists behind the attack and suspended several agreements, including the Indus Waters Treaty. Visa services have been cancelled, diplomatic ties have been downgraded, and cross-border trade has been stopped. Pakistan has also retaliated by closing its airspace, halting trade with India, and cutting diplomatic contacts. Both countries are in a tense standoff, and peace talks have completely broken down.


The tension is badly hitting Kashmiri businesses, especially in tourism and trade. Tour bookings to Kashmir are being cancelled, handicraft orders have been put on hold, and many goods are stuck due to the shutdown of trade routes. According to local businessmen, they are suffering huge losses and fear that the situation could get worse in the coming weeks. Meanwhile, security forces have launched large-scale operations against terrorists in Kashmir.


Army and police units have stepped up search operations across southern districts like Anantnag, Shopian, and Pulwama. The army has increased its presence in sensitive areas to prevent further attacks. Officials say they are working to dismantle the network behind the Pahalgam attack and prevent any future strikes.


Chief Minister Omar Abdullah and former chief minister Mehbooba Mufti have condemned both the terror attack and the violence against Kashmiri students. They have urged the government of India to ensure that innocent Kashmiris are not punished for the acts of a few. Political leaders and student groups are also appealing to citizens to maintain peace and not fall for hate propaganda being spread online. The situation remains tense but under close watch. Both sides, however, remain on high alert.

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