Big fat Indian wedding goes on a diet as slowdown bites

News Network
January 9, 2020

Mumbai, Jan 9: India's weddings are famously lavish -- lasting days and with hundreds if not thousands of guests -- but this season many families are cutting costs even if it risks their social standing.

It is symptomatic of a sharp slowdown in the world's fifth-largest economy, with Indians spending less on everything from daily essentials to once-in-a-lifetime celebrations.

Growth has hit a six-year low and unemployment a four-decade high under Prime Minister Narendra Modi. Prices are rising too, squeezing spending on everything from shampoo to mobile data.

Chartered accountant Palak Panchamiya, for example, has already slashed the budget on her upcoming Mumbai nuptials by a third, trimming spending on clothing and the guest list.

"Initially I chose a dress that cost 73,000 rupees ($1,000)," Panchamiya told news agency as she picked through outfits at a recent marriage trade fair.

"But my partner felt it was too expensive, and so now I am here reworking my options and looking for something cheaper."

India's massive wedding industry is worth an estimated $40-50 billion a year, according to research firm KPMG.

The celebrations can last a week and involve several functions, a dazzling variety of cuisines, music and dance performances, and lots of gifts.

Foreigners can even buy tickets to some events.

But these days, except for the super-rich -- a recent Ambani family wedding reportedly cost $100 million -- extravagance is out and frugality is in as families prioritise saving.

"Earlier Indian weddings were like huge concerts, but now things have changed," said Maninder Sethi, founder of Wedding Asia, which organises marriage fairs around the country.

Cracks emerged in 2016 when the Indian wedding season, which runs from September to mid-January, was hit by the government's shock withdrawal of vast amounts of banknotes from circulation in a bid to crack down on undeclared earnings.

Mumbai-based trousseau maker Sapna Designs Studio shut for months as the economy was turned on its head by Modi's move.

"No exhibitions were happening and there were no avenues for us to sell either," said Vishal Hariyani, owner of the clothing studio.

Hopes for a recovery proved short-lived when the cash ban was followed by a botched rollout of a nationwide goods and services tax (GST) in 2017 that saw many small-scale businesses close.

Since then, keeping his studio afloat has been a challenge, with consumers increasingly reluctant to spend too much, says Hariyani.

"We customise our clothes as per their budgets, and now week-long weddings have been converted to just a 36-hour ceremony," he told news agency.

"We have to pay GST, pay workers and even offer discounts to customers," he added.

"The whole economy has slowed down and reduced spending on weddings is a by-product of that. Everyone except the super-rich are affected," Pradip Shah from IndAsia Fund Advisors told news agency.

"It is reflective of how sombre the mood is," he said.

In a country where families traditionally spend heavily on weddings -- including taking on debt in some cases -- the downturn is also a source of sadness and shame, with elaborate celebrations often seen as a measure of social status.

"We haven't even invited our neighbours. It is embarrassing but the current situation doesn't offer us much respite," 52-year-old Tara Shetty said ahead of her son's wedding.

"In my era, we always spent a lot and had thousands of people attending the weddings," she explained.

"My wedding was supremely grand, and now my son's is the polar opposite."

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News Network
June 26,2020

Jun 26: The Supreme Court on Friday permitted the Centre and the CBSE to cancel the remaining board examinations due to the COVID-19 pandemic and gave the go-ahead for the scheme to award marks to students for the cancelled papers scheduled to be held in July.

A bench of Justices A M Khanwilkar, Dinesh Maheshwari and Sanjiv Khanna permitted the CBSE to issue a notification for the cancellation of the examinations.

Solicitor General Tushar Mehta, appearing for the Centre and the CBSE, said that the assessment scheme would consider marks scored by students in the last three papers of the board exams.

Both CBSE and ICSE told the top court that the results of the class X and XII board exams can be declared by the middle of July.

The top court was hearing pleas seeking relief, including scrapping of remaining exams of Class 12 scheduled from July 1 to 15, in view of increasing number of COVID-19 cases. Similar relief was sought by the ICSE Board also.

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News Network
April 3,2020

New Delhi, April 3: With 478 cases reported in the last 24 hours, the highest spike so far, India's tally of positive coronavirus cases on Friday rose to 2,547 including 162 cured/discharged and 62 deaths, as per the latest data of the Ministry of Health and Family Welfare.

As many as 647 positive coronavirus cases have been reported so far from across 14 States whose linkage can be traced to the Tablighi Jamaat cluster at Nizamuddin, the Centre said on Friday.

"A total of 647 cases of positive coronavirus cases have been reported from across 14 States whose linkage can be traced to the Tablighi Jamaat cluster at Nizamuddin," Lav Aggarwal, Joint Secretary, Ministry of Health and Family Welfare said.

"The cases can be traced in Andaman and Nicobar, Assam, Delhi, Himachal, Haryana, Jammu and Kashmir, Jharkhand, Karnataka, Maharashtra, Rajasthan, Tamil Nadu, Telangana, Uttarakhand and Uttar Pradesh," added Aggarwal.

The Tablighi Jamaat event in Delhi has emerged as a hotspot for COVID-19 after several positive cases from across India were linked to the gathering including deaths in Maharashtra, Karnataka, and Telangana.

An FIR was earlier registered against Tablighi Jamaat head Maulana Saad and others under the Epidemic Disease Act 1897, in the national capital.

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Agencies
June 2,2020

Singapore, Jun 2: Moody's Investors Service on Tuesday downgraded 11 Indian banks along with as many non-financial companies and infrastructure majors besides four government-related issuers following a downgrade of the Indian government's issuer rating to Baa3 from Baa2 with a negative outlook.

The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, volatile oil prices and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets, said Moody's.

The Indian banking sector has been affected given the disruptions to India's economic activity from the coronavirus outbreak, which is weakening borrowers' credit profiles, it added.

The 11 lenders include Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, Export-Import Bank of India, HDFC Bank, Indian Overseas Bank, IndusInd Bank, Punjab National Bank, State Bank of India and Union Bank of India.

The 11 non-finance companies are Oil and Natural Gas Corporation, Hindustan Petroleum Corporation, Oil India, Indian Oil Corporation, Bharat Petroleum Corporation, Petronet LNG, Tata Consultancy Services, Infosys, Reliance Industries, UPL Corporation and Genpact.

The 11 infrastructure companies are NTPC, NHPC, National Highways Authority of India, Power Grid Corporation, Gail India, Adani Green Energy Restricted Group (RG-2), Adani Transmission Restricted Group, Adani Ports and Special Economic Zone, Adani Transmission, Adani Electricity Mumbai and Azure Power Solar Energy.

The four Indian government-related issuers are Indian Railway Finance Corporation, Housing and Urban Development Corporation, Power Finance Corporation and REC Ltd.

"Government-related issuers in India have been affected because of disruptions to India's economy which will weaken borrowers' credit profiles," said Moody's.

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