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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.

Toll Waiver to Make Impact

Updated: Nov 25, 2024

Toll Waiver

Keeping an eye on the state assembly polls, the Maharashtra cabinet took the decision of a full toll waiver for light motor vehicles at all five toll booths entering Mumbai. This decision was taken in the final cabinet meeting just a day before the elections were announced. Commuters are now travelling with small vehicles without paying tolls at Dahisar, Mulund, Vashi, Airoli, and Tin hat Naka. The toll charge was Rs 45. While announcing this decision the Chief Minister Eknath Shinde said, “There was a demand for the toll waiver due to the traffic jams at the toll booths. The toll waiver move will now save time, fuel and reduce pollution. It was a long pending demand to waive toll at Mumbai’s entry points. Many activists had approached the court demanding the toll waiver. Just like we implemented Laadki Bahin, Laadka Bhau and Laadka Kisan yojana, now the government has taken this “masterstroke” decision for the commuters”. Nevertheless, it was a relief for the commuters as they can now avoid a long queue at the toll nakas.


Significantly, this much discussed move of the state government came just ahead of the state assembly polls. More than six lakh vehicles cross Mumbai daily, of which 80 per cent are light motor vehicles. Rs 45 and Rs 75 were charged for light motor vehicles at any of the five toll booths. There are around 70,000 heavy vehicles travelling to and from Mumbai daily. Heavy vehicles are categorised by their gross vehicle weight exceeding 7,500 kg and include trucks, trailers, tankers and other goods carriers’ vehicles. The toll waiver is among the more than 150 decisions taken in a spate of state cabinet meetings within the span of a fortnight. Due to which the government’s intention behind this decision is underscored.


As per the expectation strong political reaction came to the fore after the announcement. The MNS chief Raj Thackeray, whose party workers have on many occasions vandalised toll booths, welcomed the Maharashtra government’s decision to waive the toll for light motor vehicles. “Congratulations to my Maharashtra soldiers. We fought hard for the demand for transparency in toll transactions. We were criticised for vandalising the toll booths but now every Mumbaikar can travel toll-free,” he had stated. He even hoped that the decision was not taken keeping in mind the upcoming assembly polls. The leaders of the opposition parties criticised the government’s decision saying it’s a poll gimmick.


The construction of these toll booths was initiated in 1999 to recover the costs of 55 flyovers built by the Maharashtra State Road Development Corporation under the leadership of then Minister Nitin Gadkari. The toll collection began in 2002, with activists arguing that the maintenance costs and initial investments were recovered over a decade ago. Despite this, the Maharashtra government extended the toll tax recovery period for three more years until 2027, anticipating revenue of approximately Rs 11,000 crore. The toll waiver will certainly benefit around 2.8 lakh light motor vehicles daily.

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