Celebrations for Diwali begin with Dhanteras, also known as Dhanatrayodashi. Due to COVID regulations, Diwali in 2021 and 2020 could not be celebrated on a large scale. This is the first Diwali following the pandemic, and trends and businesses are beginning to resemble those of the pre-pandemic era.
After a 2-year haul because of COVID, the Confederation of All India Traders (CAIT) estimated that the businesses with this Diwali would cross Rs 1.5 lakh crores. The jewelry sales went up by 35% this year as compared to the previous year. The higher price of gold did not deter buyers from purchasing gold. The price of 10 grams of gold in 2021 was Rs. 47,644 as compared to Rs. 50,139 tax-free on Sunday. Nevertheless, a jewelry industry expert based in Chandigarh stated that due to the increase in the price of gold by almost 40%, the sales are not as high as they were at the peak of 2018–2019. The price of gold in 2018 was Rs. 31,800 per 10 grams, as compared to Rs. 50,139 excluding taxes.
Industry experts have also stated that the fact that this season comes before the wedding season is, therefore, the rise in sales can be attributed to this factor.
Financial experts are predicting a shallow yet long recession. Even though the interest rates are rising and inflation is high, the sales in the businesses trend this year resembled the pre-pandemic trends.
The CAIT reports also suggest that, along with jewelry, the automobile industry also witnessed huge sales. The automobile sector registered a sale of Rs. 6000 crores.
Car Sales have Increased Drastically
According to an industry insider, the number of car sales between September 26 and October 5 i.e., the Navratri period was 5,39,227 and 3,69,020 two-wheelers were sold during the same time. The best sellers have a waiting period of up to 65 weeks. This year Maruti Suzuki India Pvt. Limited delivered over 20,000 vehicles on Dhanteras, making it higher than last year but less than the peak year of 2019.
An industry expert mentioned that although the sales in the businesses have increased from last year, there are still drastically fewer than in pre-covid times. As compared to pre-covid sales in 2019 , there is a 20-30% festive retail decrease in terms of value this year.
According to data released by the Federation of Automobile Dealers Association (FADA), as compared to Navratri 2021, overall retail sales soared by a staggering 57%. All categories of vehicles including tractors experienced extraordinarily rapid development. As opposed to Navratri 2019 i.e., before Covid, total retail sales climbed 16%. FADA represents 15,000 automobile dealers and 26,500 dealerships across the country.
Other than the automobile and jewelry business, other industries have also fared well. The furniture business registered a sale of Rs. 1,400 crores, FMCG about Rs. 3000 crores, and the utensil industry, which includes steel utensils as well as brass and aluminium reported businesses of Rs. 500 crores.
(Inputs from various media organisations.)
