Ahmedabad ranks third in the list of cities that project a restraint on expenditure on their festive budget due to decreasing purchasing power. Delhi ranked first while Mumbai was second, found a recent survey by Assocham 'High Prices Dampening The Festive Spirit'.
Ac cording to the survey, over 72% of respondents from middle and lower-middle income families will be forced to slash their Diwali expenditure by 40% and on average will spend only 25% of their monthly salary on Diwali for shopping, sweets, gifts and apparel. The survey was conducted in the two-month period from August to September 2013 in more than 10 major cities like Mumbai, Delhi, Pune, Kolkata, Chennai, Hyderabad, Ahmedabad, Chandigarh, Dehradun among others.
The survey also revealed that high income groups remain unaffected by the falling rupree and double digit inflation. Prices of all commodities like sweets, dry fruits, crackers, pulses, vegetables, dairy products have registered large in creases over last year.
While the value of savings has gone down by almost 15%, prices of most of gifts and traditional Indian sweets have gone up by 55% on average due to which the majority of respondents said that they plan to spend less this festive season. Revisions in interest rates by banks have also sent EMIs soaring, further eroding their monetary power, adds the Assocham survey.
Even gold prices have gone up to Rs 30,000 per 10gm from Rs 22,000 last year. With imports at a record low in the state, gold too seems to be out of reach for the middle and lower-middle class. However respondents maintained that huge discounts may attract them to the market. Over 57% of respondents will buy only at sales or on discounts, 12% will buy fewer gifts and the 2% will buy group gifts. Only a small percentage feel that festivals are the time to splurge, even as discounts remain the biggest attraction for most buyers.
Top 5 cities to cut 40% of festive budget
1. Delhi
2. Mumbai
3. Ahmedabad
4. Kolkata
5. Chennai
Monthly expenses
Rs 4,000 (2012) to Rs 7,000 (2013)
Ghee, sugar, edible oil, flour and spices - Prises higher by 25-35% this year
Bakery products, vegetables, milk, butter, dry fruits - All have increased substantially in last one year.
Some facts from the survey< /strong>
69% - Respondents will spend less than last year
50 % - Blame rising prices for lower expenditure
68% - Will spend only if huge discounts available
55% - Will spend only on clothes or electronic items this Diwali, if they do.
4% - Will spend on jewellery
47% - Will use a credit card to shop
46% - Will spend less than 20% of their monthly income this Diwali
via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGC9hBbRU6P-hj20unhv9WObZnVZg&url=http://timesofindia.indiatimes.com/city/ahmedabad/Lights-off-this-Diwali/articleshow/23435767.cms
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