A surge in festive spending has boosted hopes that India will regain its title as the world’s fastest-growing large economy, even as analysts warn of deep challenges facing a country whose consumers and businesses are still bruised by the coronavirus pandemic.
Sales over Diwali, the Hindu festival of lights that was celebrated last week, surged to a record Rs1.25tn ($16.8bn), according to Nomura, a 75 per cent jump from last year and well beyond the usual 20 per cent year-on-year growth.
The surge underscores how economic activity has rebounded sharply, contributing to the bullish mood. This has been due in part to a big drop in daily Covid-19 cases to about 11,000, from 400,000 in May when a brutal wave of infections overwhelmed health systems.