As India prepares to embrace the festive season, the nation’s economic landscape is illuminated with unprecedented optimism. According to a recent report by Flexiloans, in the digital realm, the online retail sector is primed for explosive growth, with an expected demand of Rs 90,000 crores this festive season, marking an astounding 18-20 per cent growth compared to the previous year.
This meteoric rise in online shopping has also ignited a 40-50 per cent spike in borrowing among consumers, driven by the irresistible Buy Now, Pay Later (BNPL) offers.
The top sectors of demand spike for loans spans a multitude of sectors, including Retail Garments, FMCG/Kirana, Industrial Goods, Consumer Durables, Mobile, Pharmacy, and Auto Ancillaries, each showcasing remarkable growth.
Additionally, this festive season promises to be an economic powerhouse, set to generate a whopping 15 per cent surge in job opportunities, and over 50 per cent sales spike in segments like consumer durables and cars. There is expected to be over 20 per cent spike in specific sectors like jewelry, fashion, and footwear, the report further added.
This festive season, there will be an impressive 11 per cent surge in demand, far surpassing the modest 7 per cent growth witnessed during the initial quarter of this year, said the report.
With festivities like Ganesh Chaturthi, Navratri, Durga Puja, Diwali, Christmas, etc all one after the other, the festive fervor at its peak with rebounding economic sentiments and special schemes by lenders. Retail lenders expect over 40 per cent spike in disbursals in the season.
However, the report also revealed that MSMEs will face some challenges this festive season like increased working capital needs, expanding product lines and liquidity squeeze across channels.
