Business as usual: No impact of note ban, GST on Dhanteras | lucknow | Hindustan Times
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Business as usual: No impact of note ban, GST on Dhanteras

At a time when the goods and services tax (GST) and demonetisation are being blamed for a slowdown in business activities, the booking for high-end vehicles for Dhanteras has reached a new high.

lucknow Updated: Oct 17, 2017 12:18 IST
Anupam Srivastava
Trends show markets absorbed shock of demonetisation and GST and are emerging stronger this festive season.
Trends show markets absorbed shock of demonetisation and GST and are emerging stronger this festive season.(Deepak Gupta and Shubhankar Chaturvedi/ HT Photo)

At a time when the goods and services tax (GST) and demonetisation are being blamed for a slowdown in business activities, the booking for high-end vehicles for Dhanteras has reached a new high.

Markets on a high
  • Around 30 per cent growth is expected in middle and small car segments.
  • The sale of silver is expected to cross 3200 kg while demand of gold is expected to cross 400 kg this year.
  • The sale of home appliances, electronics and mobiles is expected to see around 20 per cent growth this year.

Around 30 per cent growth is expected in middle and small car segments. Not only this, an increase is expected in the sale of gold, silver and real estate.

Last year, around 2,200 cars were sold and major brands recorded 40 per cent growth in sales. Despite demonetisation and GST, the market leaders are expected to record 30 per cent growth this year.

The bigger car segment, that recorded an increase of 30 per cent in sale last year, is expected to record more than 40 per cent growth. Around 5,000 two-wheelers were sold from various outlets of the city last year.

This year, the number is expected to be doubled going by the details from various showrooms.

About 1700 kg silver and 275 kg gold was sold last year but going by the market mood and advance bookings, the sale of silver is expected to cross 3200 kg while demand of gold is expected to cross 400 kg this year.

One reason for market predicting good sales is the increase in the sale limit to Rs 2 lakh without PAN card. Previously, for any sale of over Rs 50,000 the buyers had to share their PAN card number.

The sale of home appliances, electronics and mobiles is expected to see around 20 per cent growth this year.

Builders are also expecting good booking and advance for real estate projects. A leading builder of the city said on condition of anonymity that around 300 properties of different builders and developers had already been blocked for booking this year for Dhanteras.

Dr AP Tewari from the department of economics at Lucknow University said: “The first impact of demonetisation and GST has been absorbed. Agriculture and industrial sector also witnessed a slowdown initially but for the last one month the economy is on the path of recovery.”

“One can see that the sale of vehicles is on the rise. Black money has been eliminated and a transformation is taking place. In the next fiscal, the growth rate will cross 7.5 per cent. Recovery in the market has achieved by the government without any fiscal stimulus. The recovery has been staged by the market itself which shows that the Indian economy cannot be shaken by temporary phases of slowdown,” he added.