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Festive season spending booms as consumers splurge, buoying economy

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  1. India’s festive season spending is surging, with consumers splurging on cars, smartphones, and TVs, boosting the country’s economic growth.
  2. Online platforms like Amazon and Flipkart have reported nearly a 20% increase in sales during the first week of the festive season compared to the previous year.
  3. Digital transactions through the Unified Payments Interface (UPI) have seen a 40% surge in October compared to the previous year.
  4. Factors contributing to the spending boom include lower inflation, rising wages, increased consumer confidence, and strong demand for bank loans despite interest rate hikes.
  5. The government’s support for farmers and reduced cooking gas costs, along with robust consumer spending, are driving manufacturing activity and underpinning India’s economic growth of over 6% in the current fiscal year.

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