New Delhi: Indian consumer demand is currently seeing good growth of around 40 per cent in the ongoing festival season, as compared to 2015, on the back of an upturn in the economy and improving perception of better job prospects coupled with steady lowering of interest rates, industry chamber Assocham said on Sunday, citing a survey.
"Riding on the back of an uptick in the economy and improving perception for better job prospects, coupled with steady lowering of interest rates, consumer demand is witnessing a marked growth of as muchs 40 per cent in the ongoing festival season this year, as compared to 2015," the Associated Chambers of Commerce and Industry of India said in a release here.
"Rural demand is adding to the festive fervour, as a good monsoon has boosted confidence among farmers and farm labour. However, as noted in an earlier Assocham survey, the demand for real estate and housing remains very low key," it said.
The uptick in demand is seen clearly in the sale of automobiles, including passenger cars, two-wheelers, mobile handsets, consumer durables and fashion-wears. So far, the maximum push is seen in the eastern and western region while the northern region is expected to pick up in the run-up to Diwali," it added.
It noted that Kolkata and other major cities in the east have witnessed a splurge on Durga Puja shopping, while the western cities of Maharashtra and Gujarat have seen good sales during the Navratris.
According to the survey, estimates point to about 20 per cent increase in spending on groceries, a 52 per cent increase in low-cost apparels, and about 32 percent increase on lifestyle and fashion accessories in the next three months.
The survey covered consumers in age groups 24 to 34 and 35 to 45 in Delhi-NCR, Mumbai, Kolkata, Bangalore, Chennai, Ahmedabad, Chandigarh, Lucknow and Indore.
"The average amount spend on mobiles during the festive season is expected to range from Rs 15,000-Rs 35,500, up from Rs 10,000 - 15,000 for the last six months," the industry body said.
"Green shoots in the economy are giving a lot of confidence to consumer demand, which hopefully would lead to an appetite for fresh investment after a brief lag," said Assocham Secretary General D.S. Rawat.
The metro city consumers are increasingly taking to online shopping as top e-commerce companies roll out discounts, freebies and offers to boost sales.
Online retailers such as Amazon, PayTm, Jabong, ShopClues, Snapdeal, Flipkart and Quikr are doling out hefty discounts apart from cash-back offers and loyalty points, the statement added.