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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.

Sacred Cows

Updated: Oct 22, 2024

In a canny move that melds agriculture and electoral strategy, the Maharashtra government recently elevated indigenous cow breeds to the status of ‘Rajyamata-Gomata’ (state mother cow). The decision, announced by Chief Minister Eknath Shinde’s cabinet, comes just ahead of the Maharashtra Assembly election. While the state’s indigenous cows are undeniably important to local agriculture and culture, the political significance of the move is unmistakable.

 The government’s decision is deeply symbolic. In Hinduism, the cow holds a revered position, often seen as a symbol of motherhood and fertility. Its utility, from milk to dung, has been woven into the fabric of Indian life for centuries. In granting ‘Rajyamata-Gomata’, status, the Shinde-BJP-NCP Mahayuti coalition is not just recognizing the cow’s place in culture but also seeking to project itself as a guardian of traditional values, particularly in rural Maharashtra.

Deputy Chief Minister Devendra Fadnavis has framed the decision as a boon for farmers, with promises of financial support for cow shelters and efforts to boost the breeding of native cows. The Mahayuti is clearly hoping to solidify its support among voters in the rural hinterland and the conservative-minded electorate.

The cow, after all, has long been a potent emblem in political discourse, and tapping into this symbolism can pay electoral dividends.

For many farmers, especially in Marathwada and northern Maharashtra, where breeds such as Deoni and Dangi are native, the cow is more than a livestock animal - it is a cultural anchor. These areas are crucial battlegrounds in the upcoming election, and the move aims to resonate with voters who hold these traditional symbols dear.

This decision also highlights a broader trend in Indian politics, where cultural nationalism is increasingly leveraged to consolidate support. The invocation of Vedic traditions and Ayurveda, as emphasized in the government’s resolution, seeks to reinforce a narrative of returning to India’s roots. Ayurvedic practices, such as the use of ‘Panchgavya’ (a mixture derived from cow products) and organic farming, are positioned as part of a broader revival of indigenous knowledge. However, beneath this celebration of tradition lies a more immediate concern for the Shinde-led government: retaining power in a state, especially after the Mahayuti’s dismal performance in the Lok Sabha election.

Given the formidable challenge from the opposition Maharashtra Vikas Aghadi (MVA) coalition, by championing the cause of indigenous cows, the Shinde government is aiming to shore up its rural base and appeal to Hindu sentiments.

While the move may galvanize the rural electorate, it could also alienate urban voters who are less swayed by such symbolism. Maharashtra’s urban centers, particularly Mumbai and Pune, which are crucial to any party’s electoral fortunes, may see this as a diversion from more pressing concerns such as economic recovery, infrastructure development and unemployment. The government will need to balance its cultural messaging with tangible economic policies to avoid being perceived as out of touch with urban aspirations.

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