India, a home to roughly a fifth of the world’s entire population, had witnessed a ground-breaking upsurge at its Diwali festive period on an annualized basis, pointing towards a gradual economic recovery for the world’s sixth-largest economy by nominal GDP, the country’s top retail trade body, which had claimed to have represented millions of firms across the Southeast Asia’s largest economic HubSpot, said in a statement on Sunday.
In point of fact, according to the Confederation of All India Traders’ (CAIT) Diwali sales figure which was released earlier in the day, sales of CAIT members over the one-month festive period that ended on November 14, had surged over 10 per cent to $9.7 billion compared to the same time a year earlier.
Aside from that, addressing to a stiffer pandemic-led lockdown which had curbed consumer spending by a substantial margin over the first three quarters of the year, CAIT Secretary General Praveen Khandelwal said in an interview with a press agency, “People didn’t purchase anything in the last eight months except essentials.
Hence people had enough surplus money, and a portion was spent on Diwali festivities”. Notably, the top retailing trade body of India had also added that it had gathered sales data from 20 cities, while CAIT members represent a swathe of industries ranging from electronics to furniture to footwear.
India’s Diwali sales surge 10% as Central Bank forecasts growth over Q4
If truth is to be told, despite an upbeat festive season sales figure, the economy of India, which had grown by the slowest pace ever on record during its past fiscal year that ended on March 31, has been set to enter into a technically recessed territory for the first time since its independence in 1947, while the Reserve Bank of India (India’s Central Bank) had projected a 8.6 per cent contraction over its fiscal second quarter of year that came against the backdrop of a record shrinkage of 23.9 per cent in the April to June quarter.
Nonetheless, citing a through-and-through optimism over the country’s consumer spending in September and October, India’s Central Bank was quoted saying in a statement later last week, “There was optimism that the revival of economic activity is stronger than the mere satiation of pent-up demand”.
More importantly, Reserve Bank of India had also added that the country’s economy might return to growth in October to December quarter, had there been a sustenance of momentum gained during the festive period.