Economy: The Festive Season Uptick

While some sectors of the economy have seen improved demand and sales in recent months, businesses are hoping the festive season sets a lasting favourable momentum

- M.G. Arun

The festival season, starting with Dussehra and continuing till the New Year, is usually boom time for retailers and manufacturers alike. Everything from cars to consumer durables, clothes to mobile phones is in demand. This year, there’s even greater hope riding the festive season— businesses are fervently hoping that demand will pick up, people will spend and hopefully set a happy momentum that will put the economy on the path of a robust recovery. At the very least, businesses are hoping to recover losses incurred during the lockdown, and possibly, earn enough to sustain themselves through the traditionally low-demand months that follow.

There is reason to be hopeful. Many industry professionals that INDIA TODAY spoke to say consumer demand has returned—to varying degrees in different sectors—in September and October, and that this holds out hope for the rest of the festive season. This is not to discount the fact that the Indian economy is in dire straits—most estimates project growth falling nearly 10 per cent this fiscal year. However, a good performance in the festive season could soften the blow and aid a faster recovery.