Economic Slowdown Impacting Business This Festive Season, Say Traders

Even gold, seen as a fall-back investment in a rocky economy, is changing this season.

The economic slowdown, which has been haunting the companies for few months now, has started to dampen the festival season as well, according to traders. The usual festive mood is missing this year as compared to last year, they said.

Rajesh Chedda is owner of Zeil Garments in Mumbai's Dadar area considered as the shopping hub for many Mumbaikars. The shop is a family run for last 24 years but Mr Chedda said this year the business is down and he is not optimistic about the upcoming Diwali as well.

"Compared to last year, business is down by 40-50 per cent and the main reason is the economic slowdown. We small retailers are paying the price of it," said Mr Chedda.

Traders association Mumbai has also verified this. According to Viren Shah, president, Mumbai Traders association, because of economic slowdown, about 40 per cent of business has been impacted.

The spending power of people has also gone down."Changes are there in our spending compared to last year. We have cut down on our expenses a lot," said Shaista Kazim, a customer.

Even gold, seen as a fall-back investment in a rocky economy, is changing this season. 10 grams is over Rs 38,000 and in 2019 alone, prices have surged by 20 per cent.

Anand Pednekar who owns a gold shop said they have now changed the design of the ornaments as people prefer lighter jewellery.

"It has become costly. In the span of three to four months, if something which was Rs 32,000 goes up to 38,000, even people prefer to go for smaller version and this is what we have made... We have reduced the weight of the jewellery," Mr Pednekar told NDTV.