Corporate India has cut budget for Diwali gifts by 35-40% this year: Report

Lucknow: Reports are pouring in about slow sales this year leading to low-key festivities across the country. Keeping in line with the general sentiment, corporate India has also mellowed down the gifting process this year. Budget for gifts has been slashed by at least 35-40 per cent reveals a survey by industry chamber, Assocham.

The industry body has mentioned that employees are more or less still receiving the Diwali gifts that have become a corporate tradition by now. The reduction in gifts is reflecting more so on gifts that are usually given to associates, network partners, key personalities and other outside contacts.

However, there has certainly been a downward impact on bonus payments with several corporate houses cutting costs in their overall operations due to debts. Besides, disruptions arising out of demonetisation and issues with the Goods and Services Tax (GST) too have affected the overall sentiment, Assocham said.

"Consequent to slowdown in the Diwali gift sale, the FMCG companies which generally bet high on festive sales in the business of chocolates, cookies and sweets are reporting less than normal sales," Secretary General of Assocham, DS Rawat said.

"Similar is the case with consumer durable firms engaged in washing machines, refrigerators, ovens, electric stoves and other such items. Even the festive sale of high-end smartphones seems to have taken a hit," he further added.

He also said that the survey endorses the general low key mood of the industry and trade with the considerable trimming of the festive budget.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) had conducted a telephonic survey of about 758 companies across tier I, II and III cities - Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Jaipur, Kolkata, Lucknow, Mumbai in the run-up to Diwali.