Following the implementation of GST 2.0, consumption has revived in the Indian economy. Deepawali sales increased by 25% this year to ₹5.4 trillion in goods, from ₹4.25 trillion, excluding an additional ₹65,000 crore from services.
All this happened when there was a negative impact on the Indian economy due to Trump's tariffs on Indian exports. This also defies the fears of so-called economists that the three festivals, namely Durga Puja, Deepawali, and Chhath, falling in the same month will hurt this year's Deepawali sales. Bhai Duj and Chhath are yet to be celebrated!
The Indian economy is doing well, not because there is any miracle that is happening, but India is a domestically driven economy. It does need to trade with the world to keep its finances in balance, as India has to import a large portion of its total trade and to pay for those imports, India has to earn foreign currencies. So India has to trade (export) with the world for the survival of its domestic economy, unlike many countries, but to balance its finances. This gives huge space for bargaining. I hope that India will use it in a better way during the trade deal negotiations with the US in the coming days.
Rajeev K Upadhyay
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