Indian retailers expect meager revenue for the current holiday season, traditionally marked by soaring consumption.
The religious celebrations, which began at the end of Ramadan on August 31 and will end with Diwali (the Hindu Festival of Lights) at the end of October, are seen as a favorable time for large expenditures, such as the purchase of cars, jewelery and real estate . But this year, experts fear, high inflation and skyrocketing interest rates will keep Indian shoppers out of the shops. India recorded its lowest economic growth in six quarters last week, with output rising 7,7% yoy. The slowdown is due to the longest period of monetary tightening in the last ten years which saw the rapid succession of around ten interest rate hikes within 18 months. The data on the sale of cars is significant, seen as a barometer of the state of health of Mumbai. Purchases fell 16% to 133.747 units in July, the largest contraction in three years.
http://www.chinapost.com.tw/business/asia/india/2011/09/05/315597/Indian-festival.htm
