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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.

Seeking the Godfather

Updated: Oct 21, 2024

Seeking the Godfather

Malatitai (name changed). a fifty-something Mahayuti political party worker is a constant fixture beside her boss, a prominent and powerful state government minister. She regularly accompanies him to inaugurations, meetings, and events where he is a chief guest, appearing in every photograph that gets published in the media and interview. An important figure in his party, Malatitai oversees the activities of the women’s wing and holds various state commission board positions, thanks to her boss. She hopes to contest the upcoming assembly elections, relying on her boss, whom she sees as her Godfather, to secure her a ticket. However, he is focused on managing current MLAs and is searching for a younger, wealthier, and more dynamic version of Malatitai to advance his political ambitions.

Like Malatitai, 47-year-old Kunal (name changed), a former youth wing president, avoided marriage, hoping to wed the Dalit leader’s daughter (now a Lok Sabha MP) to launch his political career. However, the Dalit leader has no interest in a son-in-law; he’s focused on making his daughter the next chief minister, a far more secure plan than relying on followers like Kunal, who might switch sides as soon as they gain power.

A successful career in Indian politics requires a godfather. For a newcomer with no family connection, a godfather is a boon, but often the real task is the ability to find one or be found by one. Having a godfather helps to smooth out the difficult journey ahead, which is largely dominated by caste equations, money and muscle power, character assassinations, and backbiting.

Finding a godfather today remains a formidable task. Mere networking may not land you that perfect mentee. You must possess several qualities before you come under the focus of a godfather. A typical godfather in Indian politics has access to lots of money, power, connections, and the ability to ‘get things done.’

Compared to the early seventies and eighties, almost all political parties in India today are overflowing with leaders controlling their camps of all castes and sizes. These camps continue to be dominated by self-proclaimed godfathers who control their ‘territory.’

Seeking out a godfather requires tact, skill, and the ability to gauge his capacity, resources, and commitment to delivering on promises. Some foot soldiers form relationships with godfathers to gain party positions and secure election tickets, while others, despite loyalty, switch allegiances based on the party’s fortunes. In some cases, those seeking lasting ties with their godfathers choose marriage or business partnerships, marrying into political families to ensure lifelong loyalty, regardless of their political success. The lure of power and its perks are strong, leading many to practice social climbing, becoming stooges to access and bask in that power.

Another easy access to people already in positions of power and seeking out a godfather to groom their political ambitions is through the Indian Civil Service. There are many examples of government officials ending up in politics post-retirement.

Many godfathers are now wary of mentoring. With defections on the rise, veteran leaders are mindful of the shifting dynamics with their loyalists. Many admit they are proceeding cautiously, adopting an ‘open-door policy.

“People come and go. I don’t look for loyalists, but those who deliver when asked to, and that’s what matters in the end,” admits one such Godfather.

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