Indians are buying imported alcohol and exotic fruits to leather handbags more than ever before as affluent consumers continue to drive demand.
Inbound shipments of premium commodities continue to surge in 2023, according to the Ministry of Commerce and Industry data.
While imports of tequila jumped fourfold from an year ago, they more than doubled for malt beer and cigars. Exotic overseas commodities that also recorded a spike include asparagus, seaweed, prunes, figs, quinoa, rasberries, blackberries, tangerines, satsumas, spreads containing cocoa, mushrooms, truffles.
More cars, ski boots, emeralds, rubies and tourmalines, fresh flowers, video game consoles, clothes and footwear were shipped in.
The surge, even though on a low base, underscores growing consumption among affluent Indians. The nation's GDP grew 7.6% in the second quarter beating all estimates on manufacturing and the government's spending push ahead of elections. Economists, however, flagged continued weak rural demand.
The increase in premium imports is "reflective of the K-shaped recovery", according to Teresa John, economist at Nirmal Bang Institutional Equities. "A section of the population" is not impacted significantly by the vagaries in price of every day essentials such as onions and tomatoes".
India's overall merchandise imports between January-September 2023 fell 9%, led by a decline across key commodities including petroleum products, organic and inorganic chemicals and gems and jewellery.
Consumption patterns of India's upper middle class and the elite is now similar to that of the west, resulting in higher imports, John said. Indians are also amongst the largest source of tourists in many countries, leading to a greater willingness to try out new products and cuisines, she said, adding that this demand is also linked to India's booming hospitality industry post Covid.
Citing the two-speed recovery, Gaura Sen Gupta said demand, wage growth, and employment creation is stronger in urban areas than rural regions.
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