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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.

What If Eisenhower Had Raced for Berlin?

Updated: Oct 21, 2024

Eisenhower

Imagine a Cold War without the Berlin Wall – that iconic symbol of a stark ideological divide adorned in the covers of books by every major spy thriller writer from John le Carré to Joseph Kanon. A divided Berlin has been emblematic of the Cold War (1945-91). In this context, one cannot help asking a counterfactual often asked in the past – what if the Supreme Commander of the Allied Expeditionary Force in Europe, Gen. Dwight D. Eisenhower, had opted to push east and race the Soviets to Berlin?

In the spring of 1945, as Hitler’s Third Reich lay in ruins, Eisenhower made a fateful decision: to halt American and Allied forces at the Elbe River and allow the Soviet Red Army to take Berlin.

Had Eisenhower pushed for Berlin, the Cold War might still have occurred, but it would have been a different conflict. A united Germany, neutral or aligned with the West, would have weakened Soviet power in Europe. Berlin, without its iconic wall, would not serve as the stark symbol of ideological rivalry.

The nature of Postwar Europe would have been profoundly altered. The Cold War would have swung in a way favourable to the West, or perhaps its inception may have been prevented altogether.

The absence of Berlin as a flashpoint could have led to fewer tensions in Europe, and NATO’s formation might have shifted in focus.

What prevented Eisenhower from ordering the dash to Berlin? In his thrilling classic ‘The Last Battle’ (1966), author Cornelius Ryan shows how Soviet dictator Joseph Stalin cleverly outmanoeuvred Eisenhower diplomatically, convincing the Allied Supreme Commander that Berlin was not worth the cost. Through a campaign of misdirection, Stalin minimized the military significance of Berlin, presenting it merely as another urban battleground while emphasizing other military priorities.

Eisenhower, pragmatic by nature, thought it prudent to avoid a bloodbath in Berlin and focus on defeating the remaining German armies across central and southern Europe. Another factor in Eisenhower’s decision to forego Berlin was the intelligence, later revealed to be exaggerated, suggesting that Hitler, along with remaining SS units and German divisions would make a last stand in his ‘Alpine Redoubt’ bastion. As it turned out, the Allies found no well-organized Nazi stronghold and Hitler, far from fleeing to the Austrian Alps, remained holed in his Berlin bunker, awaiting the end.

In a noted book-length essay, Eisenhower and Berlin, 1945: The Decision to Halt at the Elbe (1967), historian Stephen Ambrose, Eisenhower’s official biographer, critiqued Ryan’s work by underscoring that the general saw no value in sacrificing American lives for symbolic prizes like Berlin.

However, if Eisenhower had ordered the armies of Field Marshal Montgomery and Gen.Omar Bradley to take Berlin, the post-war landscape would have looked very different. This does not mean the Cold War would vanish. But the intensity of the Cold War, that characterized postwar Europe, would have been channelized in other regions, such as the Middle East, Southeast Asia and Africa (where it eventually did with great intensity and loss of life).

That said, Stalin’s paranoia about Western intentions, evidenced by his brutal consolidation of power in Eastern Europe, would still persist. Moscow would still desire a buffer zone, likely seeking control over Poland, Hungary, and Czechoslovakia. However, with Berlin in Western hands, Stalin’s expansion might have been less aggressive, and the tension between East and West more political than militarized.

Eisenhower’s pragmatic decision to halt at the Elbe had profound implications for the postwar order. The question of whether a bolder approach might have significantly altered the geopolitical landscape of the 20th century is now an academic one.

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