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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.

Test of Thackeray Legacy

Thackeray Legacy

Mumbai: The Mahim assembly constituency is poised for a thrilling electoral battle, as Amit Thackeray, scion of the Maharashtra Navnirman Sena (MNS), prepares to face off against formidable opponents. Chief Minister Eknath Shinde’s Shiv Sena has nominated Sada Sarvankar, while Uddhav Thackeray’s Shiv Sena (UBT) has fielded Mahesh Sawant, setting the stage for a fierce contest.


Amit, 32, has been an active party worker for the last four years. Amit’s entry into politics marks a significant milestone, as he becomes the third member of the extended Thackeray family to contest elections. He will be the second member from the Thackeray family to enter the political fray, after his cousin Aaditya Thackeray, son of Shiv Sena (UBT) chief Uddhav Thackeray. Aaditya won the assembly election from the Worli constituency in 2019.


The constituency encompasses the swathe from Prabhadevi to Shivaji Park to Mahim, which houses Sena Bhavan, headquarters of Shiv Sena (UBT).


Mahim’s diverse voter base, comprising upper-class Maharashtrians, cosmopolitan, and minority communities, adds complexity to the contest. The constituency has historically been a Shiv Sena or MNS stronghold since 1990, with the Shiv Sena headquarters located in the area. In 2009, MNS’s Nitin Sardesai emerged victorious in Mahim.


A senior MNS leader said that “Thackeray family has a rich legacy in Maharashtra politics, and it’s exciting to see the next generation taking the reins. Amit Thackeray, son of Raj Thackeray, has been groomed well by his father and has also toured the state independently, showcasing his commitment to politics.’’


The Mahim assembly seat has become a crucial battleground, with Amit Thackeray’s electoral debut and the legacy of the Thackeray family hanging in the balance. The outcome will have significant implications for Maharashtra’s political landscape.


MNS leader Bala Nandgaonkar has made a significant appeal to Chief Minister Eknath Shinde and Deputy Chief Ministers Devendra Fadnavis and Ajit Pawar, requesting that they refrain from fielding a candidate against Amit Thackeray in the Mahim constituency. This appeal is rooted in a sense of family unity and political strategy, as evidenced by Raj Thackeray’s decision not to field a candidate against Aaditya Thackeray in Worli during the 2019 elections .


MNS Chief Raj Thackeray had decided to go in the assembly elections, but they’re still hoping for some strategic backing from the Mahayuti parties, particularly the Shiv Sena led by Chief Minister Eknath Shinde, in key Mumbai seats. The goal is to defeat the rival Shiv Sena (UBT). 


Although MNS had previously extended unconditional support to the Mahayuti in the Lok Sabha election, Raj Thackeray even shared the stage with Prime Minister Narendra Modi at a public meeting in Shivaji Park. This alliance could potentially give MNS a boost in the elections.


However, one of the MNS leaders said that they are being optimistic about gaining support from disgruntled BJP voters in constituencies where the local MLAs of the Shinde-led Shiv Sena have fallen out of favour. According to the MNS leader, people’s dissatisfaction with both the ruling Mahayuti and the opposition MVA may drive them to choose the MNS instead. 


“Our expectations of attracting BJP voters may not be entirely far-fetched, considering the party’s ability to tap into regional sentiments and capitalize on local discontent. In the past, the MNS has successfully intervened in issues like the Jet Airways layoff controversy, securing the reinstatement of employees,” he said. 


The MNS has finalised a list of around 175 assembly seats in the 288-member house where it can field its candidates, and the party chief is likely to decide on the final tally, he adds.


“We are counting on informal support from the Shiv Sena and BJP in Bhandup, a constituency where they lack a strong candidate to challenge Ramesh Korgaonkar, now representing the Shiv Sena. This move comes after MNS extended unconditional support to the BJP-Shiv Sena-NCP alliance in Maharashtra ahead of the Lok Sabha 2024 elections,” he said.

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