Ongoing festive season turns breather to consumer goods industry

New Delhi: The ongoing festive season sales has brought cheers to the consumer goods industry with early trends from all channels indicating robust sales and traders' body CAIT expecting up to Rs2.5 lakh crore infusion into the market through sales and service.

Sales 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 per cent volume growth over the last year's festive season and consumers are willing to spend despite inflationary concerns. Festive season sales start from Onam, covers Durga Puja, Dusshera and ends with Diwali.

Encouraged by early signs, traders' body CAIT expects an "infusion of about Rs 2.5 lakh crore in the markets by way of shopping and sale of goods and usage of service" during Diwali festive season. Moreover, a recent hike of 4 per cent in dearness allowance (DA) benefitting 4.18 million central government employees and 6.97 million pensioners would act as a catalyst.

In addition to this, 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, said the Confederation of All India Traders (CAIT). "It will certainly trigger the market and the economy. These two decisions of the government will pump thousands of crores of rupees into the economy," said CAIT Secretary General Praveen Khandelwal, adding a good agriculture crop is also expected to bring money in rural India.

According to Consumer Electronics and Appliances Manufacturers Association (CEAMA), sales have picked up after Navratri and will reach their peak near Diwali. The industry is witnessing good traction in sales of LED TVs, washing machines and refrigerators.