CAIT expects Rs 2.5 lakh crore business during this festive season

Amid the ongoing festive season, the Confederation of All India Traders (CAIT) expects up to Rs 2.5 lakh crore infusion into the market through sales and service. Out of the 2.5 lakh crore, the traders body estimates sales of goods worth Rs 1.5 lakh crore and the rest one lakh crore will be spent on travel and other Diwali-related services.

Last year, CAIT recorded festive sales at Rs 1.25 lakh crore. As per details, the sale of products such as TV, home appliances, FMCG food and non-food, apparel etc from offline and e-commerce channels have recorded almost 8-10 percent volume growth over the last year’s festive season.

A recent hike of 4 percent in dearness allowance (DA) benefitting 4.18 million central government employees and 6.97 million pensioners would act as a driving force. The Productivity-Linked Bonus (PLB) equivalent to 78 days of wages to non-gazetted railway employees is also going to help the consumers in their spending.

The statement said, “These two decisions of the Government will pump thousands of crores of rupees into the economy. The increasing urbanisation will boost demand for vehicles and real estate and will increase economic activity in urban areas. The bumper agriculture crop is expected to bring money in rural India and it is expected that much of the liquidity accrued to these sectors will in turn boost Diwali festivity sales.”

According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), the industry is witnessing good traction in sales of LED TVs, washing machines and refrigerators. CEAMA President Eric Braganza said, “Retail sales have picked up. We are expecting 8 to 10 per cent volume growth for the industry and 25 to 30 percent by value.”

Similarly, Dabur India Executive Director-Sales Adarsh Sharma said, “We expect consumer sentiments to improve as we move towards the peak of the festive season. Food and Beverages and Personal Care are likely to lead the demand growth this festive season, which is expected to be higher than the previous year.”