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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.

Sibling Dominance

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At the time of the general election in May this year, of the 48 Lok Sabha seats in Maharashtra, the tussle between ruling Mahayuti allies – CM Eknath Shinde’s Shiv Sena and the BJP - had been the fiercest over the Ratnagiri-Sindhudurg constituency. Both the BJP, by way of the Rane clan and Narayan Rane, and the Sena, in form of Kiran Samant, brother of minister Uday Samant, staking claim.

Kiran, had been eagerly vying for a ticket, was believed to be on the verge of rebellion and had even gone ‘out of range’ at one point. However, the Samant brothers had backed down and ultimately ceded the nomination to Narayan Rane, who won the Lok Sabha.

This time, it is Kiran who is the Assembly election fray from Rajapur, which is part of the Ratnagiri-Sindhudurg Lok Sabha constituency.


The dominance of the Samant brothers in Ratnagiri has emerged as a pivotal force in Konkan’s political landscape ahead of Assembly polls. They are not just contenders but represent a burgeoning political dynasty in the verdant coastal belt.


The Samants’ ascent is rooted in their ability to engage effectively with the electorate and navigate the treacherous waters of coalition politics. Uday Samant, who is seeking re-election from the Ratnagiri Assembly seat for the fifth consecutive term, already wields significant influence as the state’s Industry Minister.


This, coupled with Kiran’s growing base and grassroots supporters, has ensconced the siblings in a uniquely dominant position throughout Ratnagiri, a constituency that has been a stronghold of the undivided Shiv Sena.


Ravindra Samant, the siblings’ father, was a prominent contractor. Uday entered the Maharashtra Legislative Assembly at just 26, winning two consecutive elections on a Nationalist Congress Party ticket before joining Shiv Sena in 2014. His appeal among Ratnagiri’s youth stems from his active engagement in local cultural and religious events, generous support for various causes, and advocacy for sports initiatives, all of which have helped him establish a strong political base in the region.


Uday’s hold over his constituency is said to be so formidable, that opposition parties are compelled to tread cautiously when selecting candidates to challenge him. As Industries minister, he will naturally be touting the investments brought by him during his tenure.


Likewise, though this is Kiran’s debut in the Assembly poll fray from the Rajapur Assembly segment, he can hardly be called a neophyte in politics. Kiran, a prominent figure within Ratnagiri’s government contractor lobby and a key enabler in employment generation in the Konkan, oversees development projects right from the Zilla level onwards. He has running campaigns in several elections.


Kiran’s local base makes him a formidable contender for three-term MLA, incumbent Rajan Salvi of Uddhav Thackeray’s Shiv Sena (UBT).


Salvi, who has initially supported the controversial Nanar-Barsu refinery project, had later reversed his stance, raising questions about the potential repercussions of this shift in the coming contest. Then there is the question whether the Muslim community in Ratnagiri’s Sakhri Nate, which previously voted as a bloc for Uddhav Thackeray in the Lok Sabha elections, will do so this time as Kiran Samant, too, has effectively built a rapport among minorities. Ramdas Kadam, a prominent leader from the Shinde camp, who vocally protested against the BJP’s claim over the Ratnagiri-Sindhudurg Lok Sabha seat, will throw his weight behind the Samant brothers as well.


As the election season heats up, all eyes will be on Ratnagiri, where the Samant brothers’ fortunes will not only impact their political ambitions but also signal the future trajectory of the Shiv Sena’s dominance in the Konkan.

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