New Delhi: Despite global slowdown and inflation, Indians are not shying away from buying products ranging from cars to jewellery this festive season. The sales both online and offline are almost going to go past $27 Billion this November. This steep hike in consumption is almost double the amount in the same pre-COVID period in 2019, and nearly 25% higher than last year, reported ET quoting industry estimates.Also Read – Ikea Sacks 10,000 Employees In Russia. Here's Why
Reasons For The Boom In Consumption
- Retail sales always peak during October-November due to festivals
- This is also a time for weddings
- Pent-up demand due to pandemic
- Rise in wages
- Increase in jobs as the economy is recovering from the jolts of pandemic
“After two years of pandemic fatigue, Indian consumers are upbeat ahead of the festivals,” the ET reported quoting Sanjay Kothari, an associate partner at Redseer. Also Read – Changing Times & Tides: Gold May Not Be The Perfect Inflation Hedge Today | EXPLAINED
According to the Confederation of All India Traders (CAIT), the sales would include nearly $15.2 billion in offline sales, compared to about $8.5 billion in 2019. This year there will also be $11.8 billion worth of sales on online platforms like Amazon and Walmart’s Flipkart, according to Redseer, a market consultancy. Also Read – Good News For Older Citizens In US: Biggest Increase In Social Security Benefits. All You Need To Know
The demand for items like mobile handsets and fashion garments is increasing. Auto sales, including those of two-wheelers, rose 57% during the nine most auspicious days in the Hindu calendar this month compared to last year, and were nearly one-fifth higher compared to the pre-pandemic period in 2019, according to the Federation of Automobile Dealers Associations.
Meanwhile, India’s annual rate of inflation based on all India Wholesale Price Index (WPI) eased to 10.7 per cent for September 2022 against 12.41 per cent recorded in August 2022.
Inflation in September 2022 is primarily contributed by rising prices of mineral oils, food articles, crude petroleum & natural gas, chemicals & chemical products, basic metals, electricity, textiles etc. as compared to the corresponding month of the previous year.