Inflation in India is on the rise and higher interest rates to buckle price rise makes credit costlier, but the festive spirit in India manages to defy the gloom in the global economy, and despite inequality in spending, Indian markets are bustling with activities. Although luxury purchases above Rs 1.5 lakh dominate festive demand while spending on affordable phones and two-wheelers remained subdued, 44 per cent of Indians are spending on their festive wardrobe, according to a Financial Express report. It’s not surprising that retailers have already minted Rs 1.25 lakh crore in a month between Navratri and Dhanteras.
The joy of giving takes precedence
As more than 80 per cent Indians prioritise gifts for loved ones when it comes to festive shopping, retail sales from shops as well as via e-commerce portals, is expected to breeze past the Rs 1.5 lakh crore mark. According to Razorpay’s data, Indians have spent 108 per cent more on electronics, while increasing the expenditure on clothes by more than 200 per cent. But as gold prices fall thanks to a stronger dollar, right in time for auspicious occasions such as Dhanteras and Diwali, spending on jewellery surged by almost 600 per cent.
Digital transformation of traditions as well
The online payment portal’s data which shows that spending doubled between 12 PM to 5 PM thanks to access via e-commerce platforms, indicates a digital transition in India. It’s also reflected in traditions, since apart from account books, now electronic cash tellers, laptops, biometric devices and even GST portals are now being worshipped on Diwali by traders across India. Most traditional ledgers are now only kept for symbolic value, while they have been replaced by GST software in modern India.
Insistence on spending on India-made products has also reflected in a healthy income for artisans and small industries, which were affected by the pandemic over past couple of years.
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