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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.

US executes massive military buildup across Indian ocean and Indo-Pacific"


This satellite image from Planet Labs PBC shows six U.S. B-2 bombers stationed at Diego Garcia
This satellite image from Planet Labs PBC shows six U.S. B-2 bombers stationed at Diego Garcia

As global attention remained fixated on Donald Trump’s reciprocal tariff actions and their implications, the United States made a significant military move—quietly but powerfully—in the Indian Ocean and the wider Indo-Pacific region.


The US military has now carried out its largest-ever B-2 stealth bomber deployment in this area. Satellite imagery reveals at least six B-2 bombers stationed at the US-UK joint base in Diego Garcia, located in the Indian Ocean. It’s possible even more aircraft are housed in hangars that satellites and radar can’t detect.


To put this into perspective, the US owns just 20 B-2 bombers—among the world’s most sophisticated stealth aircraft. Deploying six of them to this region means nearly 30% of its total B-2 fleet is now positioned here, marking a huge strategic shift.


Alongside this, Washington plans to bolster its aircraft carrier presence in the Indo-Pacific—expanding from one to three. Two carriers are set to operate in the Indian Ocean and one in the western Pacific, close to the South China Sea.


The Pentagon has confirmed that the USS Carl Vinson will head toward the Middle East, while the USS Harry S. Truman continues its mission in the Arabian Sea. Meanwhile, the USS Nimitz, accompanied by its carrier strike group, is en route to the South China Sea.


But the military build-up doesn’t end there. According to Pentagon spokesperson Sean Parnell, US Secretary of Defense Peter Hegseth has also “ordered the deployment of additional squadrons and other air assets to strengthen our air support and defense posture.” However, he did not go into specifics about the nature of these deployments.


What’s Behind This Major Deployment?

The Pentagon has stated this move is to reinforce America’s defensive readiness in the region. “The United States and its partners remain committed to regional security and are ready to respond to any state or non-state actor attempting to escalate conflict,” the Department of Defense noted.


The Yemen Factor and the Houthis

Though no specific countries or groups were mentioned, military analysts believe this might be a response to the escalating tensions in the Middle East and South Asia—particularly involving Iran and Yemen. In recent weeks, President Trump has stepped up attacks against the Iran-backed Houthis in Yemen, a group accused of launching strikes on US military and commercial vessels in retaliation for America’s support of Israel.


Iran and its network of regional allies—including the Houthis—have supported Hamas, the group currently at war with Israel and labeled a terrorist organization by the US.


Despite these developments, defense experts argue that the scale of America’s deployment far exceeds what’s necessary to confront just the Houthis or Iran. Two B-2 bombers alone—with a combined payload capacity of 80,000 pounds—would likely be more than enough for any mission in Yemen.


Last week, President Trump took a firm stance, warning Iran and the Houthis through a post on Truth Social:


“Stop shooting at US ships, and we will stop shooting at you. Otherwise, we have only just begun, and the real pain is yet to come, for both the Houthis and their sponsors in Iran.”


The Iran Nuclear Issue

Recently, Trump has been pressuring Tehran to renegotiate its nuclear agreement—a demand Iran has firmly rejected. In a Fox News interview, he stated, “There are two ways Iran can be handled: militarily, or you make a deal. I would prefer to make a deal, because I'm not looking to hurt Iran.”


During his first term, Trump withdrew from the 2015 nuclear accord, calling it a “bad deal,” and reinstated sanctions. Since then, Iran has significantly exceeded the nuclear limitations set by that agreement.


Now, Trump is pushing for a new, stricter deal. If Tehran refuses to engage in talks, Washington may consider targeting and destroying Iran’s nuclear research sites and weapons facilities.


Pentagon spokesperson Sean Parnell emphasized on Thursday: “The Secretary of Defence continues to make clear that, should Iran or its proxies threaten American personnel and interests in the region, the United States will take decisive action to defend our people.”


Though nuclear negotiations were not directly addressed, the message was clear.


Message to China and Russia

Experts also believe that this large-scale deployment sends a strong signal to China and Russia—both of whom are known allies of Iran.


The arrival of the USS Nimitz in the western Pacific is a pointed message to China, signaling that the US is committed to defending its strategic interests in the Indo-Pacific.


Likewise, the USS Carl Vinson’s presence in the Middle East is seen as a warning to Moscow.

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