This Festive Season gave a Significant Push to Country's Financial Growth
While the major part of the year of 2020 was lived in the fear of COVID19 outbreak, where industries of different verticals got badly affected, a part of the year, around this time, brought some sigh of relief, on the faces of business owners.
Recently, during the Diwali festive hour, online retailing in India revived, where it presented a highly needed boost, with direction towards the recovery of Asia’s third-largest economy. Giants of online retailing Amazon.in, Walmart Inc.’s Flipkart, witnessed a sudden increase in online sales to $4.1 billion, just from a year ago, according to data consultants.
Data also suggest that there is an increase in new vehicle registration, and another data spotted the increasing number of credit card transactions even before Diwali arrived.
Accompanying the increasing sales and transactions is the improving levy collection in the manufacturing sector, which is the prime reason for the growth of employment opportunities.
The gain in consumption also suggests that consumption is reviving, which constitutes 60 percent of the economy that was under the band-aid of slur growth of 24 percent in the duration between April and June.
India’s largest carmaker Maruti Suzuki, with Tata Motors, and Toyota Kirloskar Motor, reported during the Dhanteras 2020 that all witnessed a strong sales growth. Dhanteras, celebrated last week, which is considered an auspicious ceremony for any purchase like consumer durables, utensils, automobiles and lots more, Maruti Suzuki on November 16 declared that it sold more than two lakh cars thru web portal. This web portal of Maruti Suzuki was incepted just 2 years ago, and it now ecospheres almost 1000 dealerships in India.
According to the Chief India Economist, HSBC Holdings Plc, Mumbai, Pranjul Bhandari, “The economy is showing clear signs of improvement.” He wrote on November 12, “Monthly sales tax revenues have crossed the 1 trillion rupee mark, manufacturing indicators have rebounded, and even sluggish capital-intensive industries have seen something of an uptick.”
According to Tata Motors, the demand for its “New Forever” range of products increased during the festive season, where a Tata Motors spokesperson, said, “We witnessed an increase of 95 percent retails from 90 percent compared to FY20 festive period. The cars and UVs (utility vehicles) were in demand equally among the buyers. Harrier retails saw the highest growth at 141 percent.”
In addition to the astonishing growth stats from India’s automobile sector, personal care products were also seen in the checklist of the buyers.
There is also high possibility regarding Atmanirbhar Bharat 3.0, which is Finance Minister of India, Nirmala Sitharaman’s last Covid19 relief package before the Budget 2021-2022 session. However, there is seen a visible pattern to the four major announcements completed in the last seven months, where it strengthens the ‘fiscal conservatism’ philosophy of the administration under the Prime Minister Narendra Modi, ahead of large transfers of cash, with major importance of growth philosophy circles around for the creation of an ecosystem that protects the domestic demand, incentivizes companies for generating jobs and boosting production, and in parallel extending benefits for people in severe distress.
According to specialists, the spending after a threshold is difficult to reduce, from different economic hierarchies. And hence, there might be not adequate savings for later consumption, which presents a warning.