India’s Diwali Spending Season Shows a Lingering Pandemic Divide
Kanebridge News
Share Button

India’s Diwali Spending Season Shows a Lingering Pandemic Divide

Goods catering to India’s wealthiest are doing well, while demand for entry-level appliances and products appears to be more sluggish

By SHEFALI ANAND
Fri, Oct 21, 2022 9:00amGrey Clock 4 min

India’s peak retail season, which culminates soon after the Diwali festival, is showing signs of robust shopping despite higher prices. But an uneven return to discretionary spending among India’s consumers could spell challenges ahead for the economy, companies and economists say.

This festival season, retail sales in India’s stores are expected to be around $18 billion, up 50% from the same period last year and nearly double those in the pre-pandemic year of 2019, according to the Confederation of All India Traders.

“After two years, the current Diwali festivity will be celebrated with no Covid restrictions, which is prompting the consumers to throng the commercial markets,” said Praveen Khandelwal, secretary general of the trade association. Prices of goods have gone up 10% to 15% since 2019, he added.

Yet this season’s spending shares a key feature of India’s overall recovery—goods catering to India’s tiny sliver of its very wealthiest are doing well, while demand for entry-level appliances and products appears to be more sluggish. India’s economy grew 13.5% from April to June, partly driven by robust growth in spending.

“Post Covid, we really see the divide between the rich and the poor expanding,” said Manish Raj Singhania, president of the Federation of Automobile Dealers Associations, an industry group. As an example, Mr. Singhania pointed to the gap between demand for luxury cars versus motorcycles and scooters, the first vehicle that many Indian families can afford.

Despite being more expensive than before the pandemic, waiting lists for premium cars such as those from BMW and Mercedes-Benz that cost more than 6 million rupees, equivalent to $73,000, are so long that buyers have to wait on average four months to get delivery, he said. “It’s that crazy,” Mr. Singhania said.

The delays are partly due to supply-chain issues, but also because demand has outstripped production. The number of luxury cars registered in India in the first nine months are up 28% compared with last year, according to the automobile dealers group, though they remain 12% below sales in the same period in 2019.

Meanwhile, at the other end of the income spectrum, there has been lacklustre growth in sales for two-wheelers, especially the cheapest variants costing around 60,000 rupees. In the first nine months of this year, sales of all two-wheelers were around 12.7% higher than the same period last year but 18% lower than in the same period in 2019, according to the automobile dealers group.

Narendra Kumar, a resident of a village in the northern Indian state of Uttar Pradesh, said he had saved up to buy a motorcycle two years ago. It would have been the first motorised vehicle in his home. But the Covid-19 lockdowns, followed by two years of reduced farm income—the mainstay of Mr. Kumar’s household—depleted his savings.

Now, buying the bike looks harder than ever to the 23-year-old. The bike’s price has risen by 60%, Mr. Kumar said, while his family’s earnings aren’t back to pre-pandemic levels.

“Whatever plans one had have gotten off track,” he said.

Income inequality has long been reflected in India’s consumption, with the Boston Consulting Group predicting in a 2020 report that the share of spending by the most affluent households—those earning one million rupees a year or more—would grow from 33% of household consumption in 2019 to about half in 2030. India relies on consumption for more than half of its economic growth.

Still, new entrants to the lower rungs of the middle class in the country of more than 1.3 billion people have also been a significant contributor to the economy, especially for certain product categories in a country where per capita income hovers around $2,200 a year.

“At some point, the destiny of the two are related,” said Pranjul Bhandari, chief India economist at HSBC Securities & Capital Markets (India) Pvt. If a big segment of the population is not doing well, it would limit the ability of companies’ to grow and earn profits, she said. “We’ll be punching below our weight,” Ms. Bhandari said.

India’s economy still appears to be a bright spot compared with countries that are bracing for a sharp slowdown, and possibly recession. It could expand by 6.8% in the financial year that ends in March 2023, estimates the International Monetary Fund.

That, however, marks a downgrade from the 7.4% growth the IMF had forecast in July. India isn’t immune to the global headwinds from Russia’s war in Ukraine, which have sent food and fuel prices up, and from interest rate increases in the U.S. India’s rupee has deteriorated to all-time lows against the U.S. dollar, making its import bill more expensive.

Inflation crossed 7% in September, and the central bank has raised interest rates four times this year.

Against this backdrop, lower middle-class consumers—especially in rural areas—are likely to pause before spending on goods that aren’t daily necessities.

Shilpi Jain, an analyst with Counterpoint Technology Market Research, said premium smartphones, those costing above 30,000 rupees ($360), have been doing well ahead of Diwali. In the first six months of this year, demand for the phones rose 26% compared with the same period a year ago. However, the demand for phones that cost less than 8,000 rupees, was 24% lower than the first six months of last year.

Because of shortages in imported components earlier this year, and an increase in their prices, mobile phone companies haven’t offered deals on low-end smartphones this Diwali, Ms. Jain said.

Meanwhile, for refrigerators, sales of smaller, single-door variants have declined by around 15% this year compared with pre-pandemic levels, whereas sales for larger, double-door refrigerators are up by around 30%, said Eric Braganza, president of the Consumer Electronics and Appliances Manufacturers Association.

Some companies are already deploying resources to meet demand from higher-end consumers. The Indian unit of appliance-maker Whirlpool Corp. said in September that it had started manufacturing premium, front-loading washing machines at its factory in south India.

“The kinds of consumers who are buying mid- and premium are actually splurging much more,” Whirlpool Managing Director Vishal Bhola told an Indian business news channel.

Entry-level consumers include the hundreds of thousands of workers who went back to their villages after a nationwide lockdown was imposed in March 2020, leaving them without earnings for a long stretch. India’s economy didn’t fully reopen in 2021 either, as the country grappled with the deadly Delta variant of the coronavirus.

Some labourers remained in their villages even as cities reopened, making do with lower incomes.

Mr. Kumar, the 23-year-old who had to put off his motorcycle purchase, graduated from college in 2020. But because of the lockdowns, he couldn’t travel to a large city to seek work. Eventually, he enrolled in a master’s degree in horticulture, which used up his savings, he said.

Meanwhile, erratic weather conditions reduced produce at his family’s small farm during the past two years. He is worried that unseasonal rains this month could hurt this year’s harvest of rice as well. The upshot: Diwali festivities at his home will be curtailed, with fewer firecrackers and other treats, Mr. Kumar said.

“How will we burst crackers when the pocket is completely empty?” he said.



MOST POPULAR

Early indications from several big regional real-estate boards suggest March was overall another down month.

Art can transform more than just walls—it shapes mood, evokes memory, and elevates the everyday. Discover how thoughtfully curated interiors can become living expressions of personal meaning and refined luxury, from sculptural furniture to bespoke murals.

Related Stories
Lifestyle
The Art of Living Beautifully
By Ozge Fettahlioglu 15/04/2025
Lifestyle
Why Swimwear Star Rebecca Klodinsky Walked Away From a Celebrity-Favourite Brand
By Jeni O'Dowd 11/04/2025
Lifestyle
We’re Living in a Moment for ‘Great Art’ Creation, Says Collector Valeria Napoleone
By Geoff Nudelman 09/04/2025
The Art of Living Beautifully

Art can transform more than just walls—it shapes mood, evokes memory, and elevates the everyday. Discover how thoughtfully curated interiors can become living expressions of personal meaning and refined luxury, from sculptural furniture to bespoke murals.

By Ozge Fettahlioglu
Tue, Apr 15, 2025 4 min

Art can transform more than just walls—it shapes mood, evokes memory, and elevates the everyday. Discover how thoughtfully curated interiors can become living expressions of personal meaning and refined luxury, from sculptural furniture to bespoke murals.

  1. Artful Abundance: The Sophisticated Joy of Artful Interiors

Imagine a hushed hospital corridor, its sterile walls awash in the glow of flickering fluorescent lights. In that unexpected moment, a solitary Monet painting emerged—a luminous tableau of delicate lilies dancing in quiet defiance.

As the clinical austerity yielded to the graceful presence of art, this single work transformed into a vessel of solace and hope amid overwhelming uncertainty.

That moment continues to resonate with me—a vivid reminder that art transcends mere aesthetics to become a profound catalyst for emotional healing and inspiration. It is this transformative experience that fuels my passion as a biophilic interior designer.

I create environments where every element, from bespoke murals to sculptural installations, harnesses art’s power to elevate the human spirit, spark creativity, and enrich lives. Let us journey together into the world of luxurious interiors that define modern elegance.

2. Art as Wellness: A Daily Ritual of Rejuvenation

At its core, art is a daily ritual that renews both mind and spirit. Scientific research consistently confirms that nature-inspired art reduces stress, lowers blood pressure, and kindles creativity.

The simple act of beholding a tranquil landscape or a subtle floral motif transforms your space into a private retreat, offering solace amidst a hectic world.

In my practice, I meticulously select artworks chosen not only for their aesthetic appeal but also for their potent, therapeutic benefits.

Each piece serves as daily inspiration—a quiet invitation to experience calm and well-being. For example, our Hilton project demonstrates how hospitality resorts integrate nature-inspired art not only for its visual impact but also as a medium of healing; here, a collaboration with a local artist produced a masterful installation that functions both as a statement piece and a source of well-being.

3. Bespoke Brilliance: Celebrating Your Unique Narrative

Luxury design is profoundly personal. Bespoke art transcends mass-produced décor by capturing your unique story—whether through a custom mural reminiscent of your favourite botanical garden or silk wallpapers that evoke the allure of exotic landscapes.

Each personalised creation turns your walls into a living narrative of cherished memories and distinctive taste. Consider how a thoughtfully designed space can reflect your individuality and elevate your living experience.

4. Sculptural Elegance: Redefining Spatial Dynamics

Art is not confined to two dimensions. Three-dimensional sculptural works bring vitality to interiors by adding depth, texture, and tactile allure.

Picture a gracefully sculpted piece—a marble table echoing the gentle rhythm of ocean waves or a repurposed bronze branch serving as an elegant room divider.

Such statement sculptures command attention while seamlessly integrating form with function and providing a natural conversation starter in any refined space.

5. Architectural Artistry: When Structure Meets Art

A truly sophisticated home elegantly merges art with architecture. Imagine a residence where bespoke staircases curve with elegance, where hand-carved wooden doors evoke the intricate beauty of nature, and where expansive windows frame breathtaking vistas.

In these spaces, every architectural detail contributes to a cohesive canvas of artistic expression. As you envision your own home, consider how your surroundings can be thoughtfully designed to reflect both beauty and purpose.

6. Furniture as Functional Art: Merging Practicality with Mastery

In luxury interiors, even the functional becomes exceptional through artful design. Consider a one-of-a-kind, hand-carved pink marble swivel chair—a masterpiece where practicality meets refined craftsmanship.

More than just a piece of furniture, this chair sparks conversation and serves as an emblem of creative innovation and exclusivity.

Let this be a symbol of how every element in your home might reflect your dedication to exquisite artistry.

7. Digital Sophistication: The Future of Artistic Expression

In an age defined by rapid technological advancement, digital art installations offer a contemporary twist on traditional forms.

High-resolution displays now present dynamic landscapes—a cascade of waterfalls, the quiet majesty of a forest, or a serene digital ocean vista—that adapt and evolve with your environment.

This modern element seamlessly aligns cutting-edge technology with timeless aesthetics, ensuring your space remains as innovative as it is elegant.

8. Luxurious Textiles and Furnishings: The Essence of Understated Elegance

Luxury is often revealed in the details: the textures, colours, and fabrics that together create a haven of understated splendour.

Bespoke silk cushions with intricate botanical embroidery, sumptuous velvet throws that evoke tropical charm, and bedding that mirrors the ethereal beauty of cloudscapes all contribute to an atmosphere of refined elegance and comfort.

Every tactile detail is chosen to evoke warmth and stand as a testament to your taste for excellence.

9. Refined Heritage: Honouring Timeless Craftsmanship

In the realm of luxury, tradition and modernity exist in perfect harmony. Integrating timeless antiques—such as a rare Vladimir Kagan couch or a coveted Hans Wegner chair—with contemporary design creates a dialogue that honours both heritage and innovation.

These storied pieces carry with them a legacy of masterful craftsmanship, adding layers of significance and depth to your living environment. They remind us that true elegance is built upon a foundation of enduring quality.

10. The Art of Personal Meaning: Crafting Your Legacy

Ultimately, art is the language through which you express your unique legacy.

Every carefully chosen piece reflects a part of your personal journey, turning your living space into a narrative as emotionally resonant as it is visually stunning.

It imbues your environment with memories, aspirations, and the essence of who you are—a living masterpiece that evolves with time.

Reflect on how these elements might not only beautify your home but also stand as timeless expressions of your personal story.

Now is the moment to immerse yourself fully in the joy of art. Elevate your surroundings and transform your residence into your greatest masterpiece.

Your heart, your legacy, and your space deserve nothing less than extraordinary artistry.

Ozge Fettahlioglu is the founder of Cocoplum | Biophilic Design Studio and Boxareno | Custom Modular Constructions. A wellness and biophilic design leader, she creates bespoke spaces that inspire, heal, and elevate daily living. Ozge is also a board member of Biophilic Cities Australia.

MOST POPULAR

The motor sport famed for its fast cars, glamorous lifestyle and Champagne finishes is trying to halve its emissions by 2030.

Biophilic design isn’t just about adding greenery—it’s about creating immersive, sensory-rich spaces that restore, inspire, and connect us to the natural world.

Related Stories
Money
Bitcoin, Other Cryptos Tick Up After Earlier Loss
By ELSA OHLEN & ANITA HAMILTON 05/03/2025
Lifestyle
Want to Take the Pain Out of Planning Meals? Learn to Be an AI Whisperer.
By Jane Black 18/03/2025
Property of the Week
Château Immanuel: A Grand Hinterland Escape with a Private Lake
By Kirsten Craze 11/04/2025
0
    Your Cart
    Your cart is emptyReturn to Shop