India’s Trade 2024 – Diwali Hits New Numbers In India’s Trade; It Will Blow Your Mind!

According to the CAIT, Confederation of All India Traders, Diwali retail trade in India will substantially boost this year, projecting an estimated turnover of 3.75 to 4.25 lakh crore. The vocal for local campaign continues to shape consumer preferences, so they are reducing reliance on imported products, particularly from China, which saw the clean market share over one lakh crore this year; Diwali purchases have hugely favoured Indian Maid goods, underscoring a shift towards supporting domestic manufacturing.

With all these festivals like Bhai Doj and Chhath Puja, CAIT is projecting an additional 50,000 crore in trade, probably pushing total turnover higher. Demand for a wide variety of items, such as textiles, home decor, electronics, Food, and Jewellery, is high, with retailers leveraging discounts and promotional offers to attract Shoppers.

Position of China because of this anticipation

The “vocal for local” movement is making sure that consumers purchase Indian-made products, which caused a significant decline in the demand for Chinese goods, reportedly down by 1 lakh crore rupees compared to previous years.

In previous years, China’s Chinese goods such as electronics, decorative items, lighting, and give products were heavily imported for Deepavali, making up to 70% of the market share during the festival; however, because of the vocal for local moment, Indian consumers are now prioritised domestic and manufactured goods, reducing dependency on Chinese imports.

The shift CAIT has noticed for several factors:

Patriotism and Government Initiatives-

The initiative of PM Narendra Modi‘s vocal for local campaign disfavoured both consumers and businesses. As a result, retailers are prioritising Indian goods over Chinese AL alternatives with initiatives like one district, one product, encouraging region, specific handicrafts, and products to gain prominence.

Market impact on specific product categories-

Deepavali decor items like Diya lights, candles, idols, and gift articles were usually heavily imported from China this year. However, Indian-made products in these categories saw major search-in-demand items, such as locally crafted candles. Rangoli‘s handicrafts have replaced once-primarily Chinese imports.

Support for Local Indian artisans and SMEs:

By promoting India made products, Diwali sales have boosted the morale and sales of our local artisans, small businesses and rural manufacturers; which in turn have created a myriad of opportunities for these groups to make their contribution in the mainstream Indian economy. The imapct of this drift further hardens India’s move towards self-reliance while continuing to reduce our dependance on imports from our not so welcoming neighbour, China.

Significant trends observed in trade this Diwali include –

1. Changes in consumer preferences:

Items like clothing, furniture, electronics, and festive decor, were in surging demand, paving the way for putting enough attention on supporting our domestic artisans, small businesses, and traditional crafts people. This was the result of “Vocal for Local” campaign, in which all products sold during this Deepavali season were domestically produced, says the CIAT.

2. Breakdown of the expenses:

Taking stats from CAIT, follwoing sections comprised different percentage of spendings.

• Food and grocery- approx 13% of total festival spending.
• Textiles and garments- 12%.
• Jewellery– 9%.
• Other categories that witnessed good demand revolved around home decor, electronics, mobiles, and, our favourite, delicious and nutritious, dry fruits.

3. Marketing Campaigns:

Local traders have been seen gifting their customers with enchanting offers and discounts like “Buy 1, Get 2”, multiple combo offers, etc. This trends were expected to have a high footfall on the overall demand. CAIT has coordinated with local authorities to increase market security and traffic management, particularly in major retail hubs like Bengaluru, Delhi, Chandni Chowk, Mumbai, etc.

4. The idea of more sales:

With festivals like Govardhan Puja Bayya and Chhath Puja still yet to come, CAIT estimates and additional trade were 50,000 crore by mid-November, which could set new records for Festival sales.

This change in India’s Deepavali market is a huge economic movement that may extend beyond this festive season. If this PM started “Vocal for Local” momentum continues, India could see a sustained reduction in imports from China. Further challenging the latter market presence in one of the world‘s most populated consumer basis, this shift could encourage Indian manufacturing sectors to expand and innovate India is a stronger global player in trade with more Indian products, reaching consumers, a long-term trend of economic self-reliance could reshape India’s global trade relationships making it less dependent on import from China and other countries.