Festive Frenzy: The festive season in India unchangingly indicates an increase in consumer spending, and this time experts believe that this season may unravel the old record. According to the latest report of Bank of Baroda, the total consumer expenses are expected to be between Rs 12 lakh crore to Rs 14 lakh crore during the festive season due to the recent cuts in GST rates. The report moreover states that a large part of this expenditure will be on weddings and festivals related activities.
Biggest expenses on weddings
According to the report, there are well-nigh 1 crore marriages in India every year. Well-nigh 60 percent of these marriages take place between October and December, which is traditionally considered to be refreshing time. This is the reason that the expenses on weddings withal with festivals are moreover quite large. Bank of Baroda estimates that marriage expenses vacated are expected to be between Rs 4.5 lakh crore to Rs 5 lakh crore. This expense includes things like wedding ceremonies, reception, gifts, decorations and food.
Demand of clothes, electronics & automobiles on rise
The report moreover states that this year the demand for clothes, electronics and automobiles will moreover increase significantly. Recent changes in GST rate structure have played an important role in increasing consumer spending. Although everyday FMCG and supplies items have not been included in this study, in wing to these, these sectors are expected to goody from consumer expenses. Withal with this, demand can moreover increase in the travel sector, expressly for airlines and railway services, as people will spend to travel on festivals and wedding occasions.
Kat's estimate
On the other hand, a report by the Confederation of All India Traders (CAIT) estimates the total trade for Diwali this year to be virtually 4.75 lakh crore. The unscientific share of expenditure wideness various sectors is as follows: supplies products and groceries 13%, fruits and dry fruits 3%, sweets and snacks 4%, textiles and wardrobe 12%, electrical goods 4%, electronic products 8%, builders' hardware 3%, home decor 3%, cosmetics and personal superintendency 6%, utensils and kitchenware 3%, puja items 3%, confectionery and bakery 2%, furnishing and furniture 4%, souvenir items 8%, and other services such as automobiles, toys, packaging, stationery, and travel 24%.
Impact on India's economic growth
The report moreover states that India is one of the fastest growing major economies in the world. Although tariffs and merchantry uncertainties remain globally, India's economic growth remains stable due to domestic consumption. In this festive season, consumer spending tattoo will not only be salubrious for traders, but it will moreover help in strengthening India's economic condition. In this way, spending is expected to increase in major areas such as weddings, clothing, electronics and travel in this year's festive season, and it can lead the total consumer expenses to a new level.
