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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.

Power Player Faces a Crucial Test

Updated: Nov 7, 2024

Devendra Fadnavis

When the story of Maharashtra’s political landscape is written, one name besides Sharad Pawar that will be prominently featured is Devendra Fadnavis.


Known as “Deva Bhau” among his supporters in Nagpur and across Maharashtra, Fadnavis remains a figure of both admiration and criticism. As Chief Minister from 2014 to 2019, he became one of the most beloved leaders, yet in the years since, particularly on social media, he has drawn significant backlash.


Comparisons with political veteran Sharad Pawar are inevitable, but Fadnavis stands out as Maharashtra’s only Chief Minister in recent history to have served a full five-year term. This achievement is attributed to his sharp political acumen, strong connection with the party cadre, and an effective rapport with the state bureaucracy.


After the 2019 elections, despite the BJP-Shiv Sena alliance securing a mandate, political differences prevented them from forming a government. However, since then, not a single MLA has defected from Fadnavis’s side, nor have serious allegations been raised against him, underscoring his resilience and the loyalty he inspires. As Maharashtra gears up for the 2024 elections, all eyes are on Fadnavis, a man the party leadership believes can turn the tide, particularly with RSS backing.


The stakes this time are high for both Fadnavis and his opposition, including Sharad Pawar. With the BJP’s reliance on its allies – Eknath Shinde’s Shiv Sena faction and Ajit Pawar’s NCP faction – Fadnavis has publicly acknowledged the need for unified efforts to secure power. However, the Pawar factor looms large.


Sharad Pawar has strategically fielded strong candidates, making it clear he is focusing on individual party wins. This move indicates that Ajit Pawar’s faction may not significantly impact Pawar’s influence.


The BJP faces a challenging electoral battle. Direct contests with Congress are anticipated to be tough, given the consolidation of Dalit-Muslim votes and the potential split of Maratha and OBC votes. Fadnavis’s strategy appears focused on drawing votes away from the UBT faction (Uddhav Balasaheb Thackeray’s Shiv Sena), with support from the Shinde faction and Raj Thackeray’s MNS. If this vote-splitting strategy works, Fadnavis could edge closer to power.


A key challenge for Fadnavis lies in retaining Maratha support, especially amid the rising influence of Manoj Jarange Patil. Patil’s vocal demands for Maratha reservation have garnered widespread backing within the community, presenting a roadblock for Fadnavis. While Fadnavis has advocated for Maratha reservation, legal hurdles have prevented progress, and he now faces criticism from Patil and others.


For Fadnavis, the elections are nothing short of an agnipariksha (trial by fire), as he navigates alliances, community expectations, and fierce competition.

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