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Dear Readers,

Business Economics wishes a joyous, happy and prosperous Durga puja and Deepawali to all the readers. May all be blessed by Maa Durga, Maa Saraswati, Maa Laxmi, Lord Ganesha & Lord Kartikeya. In India, festivals are the occasion of joy, offering & prayer to the Divine. Festivals are a period to spend time with family, friends and also a time to spend. Globally, festivals play an important economic role apart from driving sales thereby generating employment. During this period consumer spending increases, boosting growth of the economy and thereby the Nation. This year we will be celebrating Durga puja and Diwali in the same month of October 2025. The celebration will be with pomp & gaiety. Maa is worshiped by all for blessing & prosperity. Maa Durga is incarnated with the power & weapons given by Lord Vishnu, Lord Brahma, Lord Shiva & other demi Gods & Goddesses to kill demon Mahishashura, destroy his army and to restore peace on earth. Maa Durga’s son Lord Ganesha is worshipped globally when an enterprise is started for success to provide security, to expel obstacles and grant prosperity. Lord Kartikeya is worshiped as destroyer of evil. He is the giver of strength and relinquishment. Lord Shiva’s family live with each other with humility and respect having diverse individual nature. All of them have different strengths & individuality. Maa Laxmi resides where Her devotees are pure, live with austerity and serve the society. Maa Saraswati - God of knowledge is the bestower of wisdom.

We all know, Diwali is a festival celebrated worldwide worshipping Maa Laxmi and Lord Ganesha together. The festival is the celebration of light over darkness and good over evil. Corporates also celebrate the occasion in India for growth and prosperity. Purchase of gold, silver, new garments, electronics goods & cars are usually made during this time. Gifts are exchanged between families, friends, relatives, acquaintances along with good wishes invoking Maa Durga & Lord Ganesha’s blessings.

Respected past Prime Minister of India Lal Bahadur Shastri known for his simplicity and leadership skills, commonly called Bapu – Mahatma Gandhi who led India’s freedom struggle against the British rule through non – violence and the Missile Man of India that is A.P.J Abdul Kalam are also born in the month of October.

Cover Story: India, known as the land of diversity, is home to a multitude of communities, each with unique cultural traditions. Festivals are an integral part of Indian culture and way of life, providing opportunities for celebration, spiritual growth, community bonding, and remembrance of ancestral heritage. These celebrations, which range from major religious festivals like Durga Puja, Diwali and Holi to regional agricultural events such as Pongal and others encompass a diverse array of traditions, rituals, music, dance, and communal feasts, reflecting the country’s rich cultural diversity tying together the threads of its history and future.

The economic impact of festivals is, in fact, too big to ignore. The total economic worth of the creative activities involved in Durga puja festival was estimated at ₹32,377 crore in 2019 according to

a study by the British Council. The Durga puja economy has increased manifolds since 2019 and according to West Bengal Chief Minister respected Mamata Banerjee the state witnessed business of over ₹ 85,000 crore approximately and employment generation for around 3 lakh people during the 2023 festivities.

Retail sales during this time, estimated by the Confederation of All India Traders (CAIT), hit ₹ 4.25 trillion in 2024, representing a 13.3% growth, which remains strong but slower than that of the previous year.  E-commerce, however, showed more resilience, driven by tier-2 and tier-3 cities. The Amazon Great Indian Festival 2024 (AGIF ’24) — live between September 27 and October 29 — has been the best-ever shopping celebration for Amazon’s customers, sellers and brand partners across the country. The over-a-month-long shopping extravaganza witnessed a staggering 140 crore customer visits—the highest ever. Over 85% of customers were from non-metro cities. Underpinning its commitment to delivering an unparalleled shopping experience, Amazon delivered over 3 crore products the same day or next day, and had the largest ever showcase of 25,000 new product launches from top brands across categories.

The recent cut in GST rates on most fast-moving consumer goods and consumer durables is expected to spur the consumer demand further. The aim is to boost consumption, which has been subdued despite the income tax relief announced in the Budget 2025.

Indian Economy: Economy fared better than expected driven by strong expansion in manufacturing and services sector. It is expected that a GDP growth rate having a target band of 6.3-6.8% is achieved.

President Trump has imposed a 50% tariff on many items like textile, steel, jewelry etc. However, it is expected the government may give some relief and the demand will get adjusted with the price hike. With the 50% US tariffs on Indian goods in full flow, the labor-intensive exports to the US are facing turbulence, as millions of jobs in India are at stake. EY estimated that nearly 0.9% of India’s GDP could potentially be affected by US tariffs based on India’s export share in GDP (22% average over FY23 – FY25) approximately. Government of India will also consider giving some sort of incentives to continue exporting goods to the US. The government’s ongoing taxation and business reforms will further enhance competitiveness, reduce costs and position India to seize opportunities in new global markets. But the month of September is expected to show a steeper fall in exports as it will be the first month fully exposed to the new 50% rate.

FM said that the GST reduction will boost consumption by ₹ 2 lakh crores and will give much relief to the middle class. She also said that this year the GDP growth rate is around 7.8% despite global uncertainty. Rate reduction, GST reform will relieve common man boosting consumer demand. History tells us that high rates of tax can affect consumption and manufacturing. Many units might get closed affecting payment of lenders. Moderate tax structure is better. The goods new is more than 375 items approximately will be affected by GST reduction. Middle class and poor people will get some relief. FM also said further reforms will have a sweeping effect. Industries will have to reduce production and will have to lay off workers. Government should consider all aspects before imposing tax.

Recently S & P upgraded India’s sovereign credit rate from BBB to BBB –  in August 2025 giving a stable outlook. There is a need to spend and invest rationally unless the government assures to protect public and enterprises in case of any external circumstances affecting them. An enterprise’s loss because of unforeseen events should not be con-sidered as fraud. Supreme Court has also given direction in this regard.

20 Indian states spent 27% of capex in April to August 2025 with subsidies set to be rationalized, it remains to be seen if this materializes. With revenues at risk due to GST 2.0, the axe may fall on capex spending.

By 2025, the “Make in India “campaign has advanced significantly, becoming a significant center for production. Further India’s investment in digital infrastructure, smart cities, road and rail has paid off. As technology is adopted agriculture will be increasingly modernized. Fintech, e-commerce and AI driven technologies will play a significant role in GDP development of the country as internet usage increases.

India’s banking sector and stock market will further develop as trust in the country’s economic stability grows.

IBC: Enterprises engaged in manufacturing when severely affected resulting in delay of repayments of loans have been termed as fraud. Government has to direct what is to be done in such cases instead of opting for the IBC process. Guidance should come from The Bharatiya Nyaya Sanhita (BNS), 2023, which is India’s new penal code that replaces the Indian Penal Code (IPC), 1860, aiming to modernize the country’s substantive criminal laws touching every part of the Code like definitions, admission procedures to liquidation, personal guarantor’s, group and cross border insolvency, penalties and regulatory powers. The new Insolvency and Bankruptcy Code (Amendment) Bill 2025 tabled in Lok Sabha this monsoon aimed at restoring order.

The Bill is comprehensive but its effectiveness is certainly not guaranteed.

India Inc. is also not coming forward for new investments until and unless they are confident about the business scenario at present. This is affecting growth of employment. Government needs to support borrowers who are facing difficulties from external shocks.

Conclusion: Since the government has imple- mented significant changes, Finance Minister encouraged India Inc. to invest and grow. According to her, the government has been making steady progress in meeting sector expectations about tax incentives, ease of doing business, and compre- hensive reforms.  No rational investor will create fresh capacity when the demand scenario is uncertain – until and unless the government provides protection when companies are affected by external factors. Lenders should be directed to give time for recovery of their dues.