New Delhi: After a harrowing second wave of Covid-19, the Indian consumer has found their mojo back this Diwali. Consumer sentiment in India has improved tremendously and according to reports, three out of five households are ready to splurge during the festival.
Online sales in India are expected to jump by 42 percent to $9.2 billion this Diwali. Forrester Research has predicted the phenomenal speed with which Indian consumers are gravitating towards e-commerce.
Markets in India are booming and most of the sectors are geared up to take full advantage of the upbeat mood of people in the festive season. To increase the spending power of people, the Modi government has also announced a 3% hike in dearness allowance for its employees. Salaried government employees would now get 31 percent of dearness allowance to compensate for the price rise of commodities.
The Modi government has estimated that the move will benefit 47 lakh central government employees and 68 lakh pensioners, Various state governments have also followed suit and have announced raises in DA allowances to their employees.
Industry experts believe that money in the hands of government employees would be spent in the market which will give a further fillip in an otherwise resurgent Indian economy.
Meanwhile, export orders for food, handicraft, and readymade garments have shown an increase of 15 percent on a year-on-year basis owing to the festive season and higher demand for Indian sweets and snacks during Diwali.
Industry experts confirm that the overall snacks, sweet and confectionaries segment is seeing a 4-5% increase in export orders. Ajay Sahai, Director General of Federation of Indian Export Organisation explains, “Lifestyle products, textile, leather, handicrafts, and carpet are the goods that are most sought after during this period. There is strong order booking in these items and volume is 20 percent higher than last year in some segments.”
India’s merchandise export had amounted to $198 billion in April-September 2021. It is being estimated that the increase in this quarter could be around 40 percent more in the current quarter due to the festive season. “The US is doing better than the UK and EU,” A Sakthivel, Chairman of Apparel Export Promotion Council said.
The effervescent economy of resurgent India is an auspicious omen on Diwali.