This Diwali season, there’s a noticeable shift in how Indians are shopping. Economy experts and trade analysts noticed that customers are now preferring ‘Make in India’ product over Chinese products and this is a giant shift. Is it going to cost about 1.25 lakh crores rupees to China’s business with this trend.
The credit goes to the Prime Minister Narendra Modi who initiated ‘Vocal For Local’ drive where people have been asked to prefer Indian products. Earlier, consumers had a preferences for foreign products mainly because Diwali requirements such as decorative lights and other related items were relatively cheaper and simpler to obtain. Now, there is a better understanding of essentiality of purchasing locally manufactured products, and consumers are targeting such products.
How China is Affected
Trade analysts believe that preference to use Indian made product in the festival of Diwali is a big blow to China’s economy. The decline in demand for products originating from China will translate to losses, the approximate figure being ₹ 1.25 lakh crore. This gives a real effect of the “Vocal for Local” campaign, where Indians prefer domestic merchandise to relatively cheaper foreign products.
How This Supports India’s Economy
Customer in India have preferred to support their local industries with the festivities importing products such as clay diyas (traditional earthen lamps), decorations and even electronics. The domestic gross sales could reach above ₹1 lakh crore ($14 billion) during Diwali, which came as a positive outlook for India’s economy. This rise in demand for Indian goods not only assist local industries but also create employment within the country.Using foreign products corresponds to changes in the thinking of the Indian consumer who is now inclined to support the local industries. There are indications that this trend of repurchasing the Indian goods may go beyond Diwali and have lasting impact on the economy.
Impact of Vocal for Local on Dhanteras Sales
For Dhanteras which is the first day when Diwali shopping begins the purchases estimated to be around ₹60,000 crore. The Confederation of All India Traders (CAIT), an association of traders covering large part of the country, called upon traders to popularize ‘Make in India’ products.This initiative has been successful, with reports from markets like Delhi’s famous Chandni Chowk and revealed the fact that most buyers consciously look for Indian products.
The “Vocal for Local” campaign has revealed it is not difficult to awaken the patriotism in consumers. This Diwali, the change in trend indicated that ‘Made in India’ products doesn’t just shows up a fancy illusion. But it is also a positive effect to the Indian economy to its further development with less investment in import as the campaign proceeds.
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