India has been successfully able to navigate post-Covid economic shocks and the shifting global geo-political structure. Consumers are out in full force taking advantage of festival season shopping.
Stores and showrooms selling everything from jewellery to apparel to automobiles are reporting significant increases in sales on pre-Diwali festival days. The state of the automobile sector, which is essential to both macroeconomic growth and technological innovation, is a good indicator to measure India’s economic health…and all signs point to an upward trend.
In India, the automotive industry registered high growth rates during this festival season. According to the Federation of Automobile Dealers Associations of India (FADA), the country’s total vehicle retail sales rose 57 per cent during the Navratri festival this year.
The total vehicle retail sales between September 26 and October 5 of this year stood at 5,39,227 units as compared to 3,42,459 units sold during Navratri last year.
According to data, every category in the automobile sector showed extremely high growth with two-wheelers, three-wheelers, commercial vehicles and passenger vehicles increasing by 52 per cent, 115 per cent, 48 per cent, and 70 per cent respectively.
Leaders in the automobile sector are overjoyed that after a gap of three years, customers are back in their showrooms ready to purchase new sets of wheels
India’s appetite for precious metals remains voracious. Gold and silver traders across the nation see high sales during October and November.
The festive period usually sees higher sales for Gold, Silver and Diamonds, as most Indians consider such purchases to be auspicious during this time of the year. This year hasn’t been any different.
Customers are coming in large numbers and the rate of gold jewellery is within the range of 50,000 rupees (USD 607). For people, this rate of gold is a buying opportunity and people are excited because of the price range, says, Ashish Pethe, Chairman of All India Gems and Jewellery Domestic Council.
According to industry projections, Online and in-store retail sales are expected to surpass 27 billion USD this year, almost double from 2019 and about 25 per cent higher than the previous year.
According to the Confederation of All India Traders (CAIT), the sales figures would include nearly USD 15.2 billion USD in offline sales, compared to about USD 8.5 billion USD in 2019.
The post covid recovery of any nation is usually measured by the discretionary spending habits of its population. The upwardly mobile, aspirational Indian is now spending on holidays and travel and while on vacation, likes to shop as well. This shows an economy that remains resilient and consumption patterns that remain resilient. India remains open for business.
Meanwhile, due to the auspicious timing, Dhanteras is being celebrated on two days which led to an upward trend in the market. Buyers are not shying away from investing in the strengthening gold on the first day. Experts are saying there is robust buying in the market and expect to reach 56,000 levels in a year’s time. They also said a correction in international gold prices had been happening since the aggressive interest rate hikes by the US Federal Reserve and expected buyers to buy the dips. On Sunday, gold with 24K was trading at Rs 51,290 per 10 gm in the morning, an increase of Rs 10 from yesterday’s closing price.
Ajay Kedia, Director, Kedia Advisory, said, “We see gold demand on Dhanteras is likely to be robust as after two years of Covid-19 restrictions. This year has been largely restriction-free and more people are likely to shop this year. There has also been a surge in the number of weddings this year and the jewellery demand has been higher.”
He added that while that there could be some volatility in the global market in the near term, arising from the outcome of the US Federal Reserve’s meeting early next month where it may hike its interest rate, locally the precious metal was likely to sail through on festive and marriage-buying.