NEW DELHI, INDIA, November 10, 2001: Markets are relatively deserted, retailers are disillusioned. It’s apparent that a depressed economy has eaten into the country’s biggest spending season, with everyone penny-pinching. Business has been less than ever before and shows no sign of picking up even with the festival of lights only a few days away. With higher international prices and a deepening economic slowdown, jewellery dealers, big and small, say business is less than 50% of that expected. There is, in fact, no sector that is not feeling the pinch. People are thinking twice about making smaller purchases too. Apparel stores across town have slashed prices and are offering freebies and discounts galore. State emporia, too, have put up traditional festive season discounts, but the festivities are clearly low-key. Puneet, a dealer in dry fruits, says demand is poor. “The war, tighter security is affecting the mood of the people. Nobody is spending.” Even the price of gold is being impacted, according to a report by Reuters. They say, “Traders and industry officials said demand for gold jewelry in top-consumer India is likely to remain depressed despite the Hindu festival Diwali and the wedding season this month because of high international prices and a deep global slowdown.” The price of gold briefly reached $300 after September 11, but has now dropped back to around $280.
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