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00:00A very good evening. Thank you very much for joining us here on ETNOW. I'm Nivedna Prabhu.
00:18Today, this Monday looks very different. It is the first day of Navratri, but also it is the first day of the implementation of the GST rate nationalization.
00:26In fact, we here at ETNOW with our team of reporters across the country have been looking at what every sector is looking like.
00:34Whether we're talking about the national capital, Noida, Mumbai or even Chennai for that matter, lots in store for you as to what that's looking like.
00:41But let's begin with the national capital. It has a different mood today.
00:45In fact, let me go straight across to my colleague, Samir Dikshit, who joins me today while we discuss the great savings festival for consumers.
00:53Samir, what we have definitely been observing the whole day. First of all, very good evening to you.
00:58You are reporting from Lajpatnagar and we know what kind of a market and mood this generally has.
01:04But look at what we have looked at here with the policy push that the government has had.
01:09There are two aspects of this, Samir.
01:10One, of course, is letting the common man purchase whatever they want.
01:15But more importantly, it's that affordability, the opportunity to be putting a lot of money into their hands,
01:22which means that they're out there today purchasing.
01:25And perhaps wherever you're reporting from, you're going to be telling our viewers just that, Samir?
01:29Absolutely, Nivedna. Good evening.
01:34And you mentioned absolutely right that, yes, I'm in Lajpatnagar, quite a busy marketplace in central Delhi.
01:40And as you can see, each and every shop over here, they are colorful and all packed with customers.
01:47Customers, they are looking to buy various products ranging from the shoes to clothing and even to dry fruits.
01:54Not just this, we have seen in the day that there was a good number of footfall at the electronic stores as well.
02:01People are looking to buy large-sized TVs, the refrigerators and several other kitchen appliances.
02:07But when it comes to take the benefit of the GST rate rationalization,
02:12we have seen it is there in the auto space, in the electronic space.
02:15But yes, one more space is the drive-through to market that you see over here.
02:19Over here also, you can see that there is a significant number of people who are coming up.
02:23And over here, I'm joined by some young students, those who are here.
02:27First question on the GST part, the rate rationalization, I'm sure you might be looking to take some advantage as well.
02:33Yes, but currently, I'm here also for market research only.
02:37It's a college assignment, so we are here to research about the dry fruit market and health.
02:41And what sort of impact that you want to, the feedback that you want to take in?
02:45We wanted to know about the customer profile, what kind of customers are currently coming to buy,
02:50whether they are seasonal, what kind of profile they have,
02:52whether they look for alternatives in the e-commerce site or they buy from offline.
02:58How do they verify the quality? What standards they look for?
03:01Okay.
03:02So that's a very good opportunity as well for the students, for the young students,
03:05they can get the real ground feedback that how the market is taking shape.
03:11In addition to this, I'll talk to some of the other customers.
03:13Ma'am, good evening.
03:14First of all, the dry fruits, you can purchase,
03:16now the GST is a great deal.
03:19Dry fruits are, I'm sure, that you will have to take advantage of this.
03:24Yes, it's okay.
03:25We don't have to take advantage of this.
03:25We don't normally take this.
03:28Okay.
03:28Diwali gifting?
03:29Diwali gifting.
03:30Okay.
03:31But what's the right thing?
03:32Yes, it's right.
03:33Yes, it's okay.
04:03There's an opportunity that they can stock, they can purchase, seeking the festivals quite
04:07in advance.
04:07Even wedding season, it is about to start.
04:10How overall analysis that you want to put up?
04:12It's the start of season.
04:14Everyone stocks at this time only because winter starts from this phase only.
04:19So eventually this is the best time wherein we can stock our stuff, wherein we can put more
04:26and more, more in our refrigerators.
04:28That's the best time of the year.
04:30Okay.
04:30And the same that you can see as well, because the customers, they are coming up in good number.
04:35The GST rates on the dry fruit has been slashed from 12% to 1% to 5% and people are buying
04:42it for various purposes.
04:43In addition to this, let's talk to some other people as well.
04:45And that's the reason now.
05:15People are looking to buy more because they understand that the more they buy, they can
05:19save a bit more.
05:21Not just at the dry fruit store, there are multiple other stores as well.
05:24As you see, the clothing store and even the shoes or the shoe segment as well, the rate
05:28has been slashed to 5%.
05:30So that's sort of advantage the customers are looking to take from the market and they are
05:35coming up in good numbers in the retail market, at the organized stores as well.
05:40Back to the way now.
05:45Right, Samir.
05:45You pointed out about the fact that people are taking advantage.
05:48I'm hoping that once you're done with your assignment, you'll also be taking advantage
05:53of the same and packing a little something for me as well.
05:55But thank you very much for joining us.
05:57Given that particular aspect, like you rightly said, it's not just one particular store or
06:02one sector.
06:03You're looking at this kind of festivity with that policy push come in.
06:07So let's talk about the fact that apparel is no different.
06:10And let's change the flavor a little bit.
06:12From the national capital, let's go to the south.
06:15Let's go to Chennai to find out what is that looking like in terms of apparel.
06:18Because Jude Sunit, my colleague, has had the opportunity to break that down for us.
06:22Take a look.
06:29Now, it's been a long, hard day of crunching GST numbers.
06:33And to treat myself, I'm taking some time off for retail therapy.
06:37And what better way to kickstart the festive season by buying a bunch of new clothes.
06:42Now, I'm a Chennai-based apparel brand, Basics Life, that is rolling out the advantages of
06:47a reduced GST rate on apparel to all customers by way of a discount itself.
06:53Let's quickly take you through what the new GST rate says.
06:57Any garment or apparel priced below 2,500 rupees will now come to you at a GST rate of just
07:045% from the previous 12%.
07:06So, this pretty much means I'm buying some shirts, some denims, even as I look to shore
07:12up my shopping list and make good on that retail therapy that I've decided to take myself
07:17out to.
07:18Now, what's also interesting is that a number of apparel players, including Basics Life and
07:22many others, have decided to roll out the entire benefit of this reduced GST rate to customers.
07:29Effectively, what we're looking at is a slew of discounts.
07:32Anything priced below around 2,500 to 2,600 rupees will, of course, be available for,
07:38let's say, a 6% to 7% discount from 12% to 5%.
07:43And that's pretty much what this notice here at the store also says.
07:47A discount of 6.25% will be applicable on purchases of merchandise below an MRP of 2,620 rupees.
07:53But what's also interesting is that anything priced above this will also be brought down to
07:58pretty much the same rate so as to ensure that all customers make full use of that standard
08:04GST rate of 5% applicable to all merchandise around 2,500 rupees.
08:10So, the perfect excuse then to shore up on your shopping list, shop for the festive season
08:14and ensure that you pretty much look your best because that's how the new GST regime is all
08:20set to positively impact consumption as far as the apparel sector goes.
08:23Right, Jude, thank you for telling us, you know, the fact that you had the opportunity
08:31to buy new clothes.
08:32And in fact, when all of us have been reporting through the day, we've had the opportunity
08:36to not really show you about just the policy push but also about how this is an opportunity
08:42for people to be buying considering it's the festivity that's kick-started.
08:46It is day one of Navratri.
08:47But let me also tell you one thing, given the fact that everybody is putting their best
08:51foot forward and, you know, telling us about what this is looking like, it also calls for
08:56a little break, right?
08:57And wellness is one of those sectors which has also got a massive push considering the
09:02rate rationalization has happened.
09:03Now, I have not had the opportunity to take a break but Anjali, my colleague, reported from
09:07Mumbai.
09:08In fact, Kolaba to be specific, what is that looking like?
09:11Time to take a look.
09:12Well, the next-gen GSC reforms kick in from today and medicines are going to see a big
09:21cut in prices with the GSC slabs coming down from the earlier 12 to 18 percent down to most
09:27of the medicines now being taxed at 5 percent.
09:30Now, this is going to give a major boost to the sales of medicines.
09:33We are currently in a Wellness Forever store in Kolaba where what we're hearing is that
09:38many customers who have put on hold the purchases for long-term medications and also very expensive
09:44medications such as diabetic patients, they have started to place their orders for their
09:49diagnostic kits.
09:50The one that have seen a slash in GSC from 12 percent earlier down to 5 percent now and
09:55that has led to a major change in the prices.
09:58Other than that, most other genetic medicines also have been moved from 12 to 18 percent slabs down
10:04to 5 percent and that is leading to more demand coming in for these medicines.
10:08It's a rainy day here in Mumbai which is why we might not be seeing as many footfalls in the stores
10:14but the online orders, the delivery orders is where the stores are seeing good momentum
10:21in terms of orders and this has to be attributed to the cut in the GST rates and the sales of
10:28medicines is expected to see a major boost from here on.
10:31Right Anjali, thank you very much for joining us with that.
10:37Now let's just quickly do a recap, right?
10:39We saw what the dry food segment was looking like, we saw that my colleague Jude had the
10:44opportunity to buy clothes but what is festivities without sweets?
10:48I don't know about you guys but surely that's one thing that I definitely look forward to
10:52but while we put that into context, let's find out what is the mood like in Shri Ganesh
10:57sweet shop as far as Ghorivali in Mumbai is concerned, Anurag Shah, my colleague, not only
11:02had the opportunity to kind of see what the mood check is like but more importantly with
11:07that GST rate rationalization and remember for a business perspective, we are also looking
11:13at how the complexity of the bill has now been simplified.
11:16So take a look at this report.
11:19There is a festive bonanza for items like Namkeen, cheese, butter, ghee.
11:26So presently I am in Boriwali in Shri Ganesh, Shri Mithai and Farshan shop and all the items
11:34you can see, there is a reduction of GST starting from cheese, butter, Namkeen, the packet of Namkeen
11:41also which used to attract the 12% GST will now have a GST of 5% only.
11:47There is a pizza bread used to have 5%, now there will be no GST.
11:52So I am joined by the owner of the shop. Sir, how big is the relief on all these items?
11:59There in chocolate 18%, now 5% only.
12:05Okay.
12:06And cookies, pizza, 5% only.
12:09Okay.
12:10So if anyone, housewife.
12:14So how much will it be?
12:18A housewife is a minimum middle class of 12,000 to 15,000 monthly.
12:24So it will be 1000 rupees, then yearly 12,000, then it will be a gift for one.
12:31Okay. So the chocolate, what is the GST rate?
12:3418% chocolate, and now it will be 5%.
12:375% is the pizza base.
12:39And the pizza base is the 12% which is 0%.
12:41What is the pizza base?
12:42And what is the pizza base?
12:43This is what is the pizza base.
12:44The pizza base is the 5% which is the 5% which is the 0%.
12:47So this is the pizza base.
12:48The pizza base is the 5% which is the 0%.
12:50Cookies on 18% and the 5% was the
13:14baked in the for storing temperature depends on theHeart.
13:16So all the bakery products are also now cheaper, GST is 5%, but on the pizza bread there is no GST, on Khakhara there is no GST, so at least thousand rupees per month saving for middle class family and yearly saving is up to at least twelve thousand rupees.
13:41So that's a ground reality after the reduction of GST on food items like Namkeen, Khakhara, pizza bread, cheese and butter.
14:11How interesting is it? It's festivity time, there is a policy push and more importantly, can you really be shocked till you drop?
14:17Well, my colleague, Sumida Karir had the opportunity to do that in DLF Mall Noida. Let's take a look.
14:23In fact, customers are still coming in. This is comparatively early in the day for consumers, but we are expecting more footfalls and as far as shopping is concerned, well, this is going to be my next purchase.
14:39I'll keep it at the counter just for a short while now, but let me just give you a sense of what's really happening as far as apparel stores are concerned, especially the independent ones, independent labels, where I'm standing.
14:51In fact, I'm standing at one of these independent labels. So all of these categories, all of these items have been placed at flat 50 percent off and flat 50 percent off is essentially what this shop is offering.
15:02There's several others also. They have put out, you know, the GST rate change in terms of, you know, cards and black cards, which are very prominently have been displayed on store for consumers to sort of get an understanding of the kind of production that they're going to be seen as far as the apparel category is concerned.
15:20Now, if you look at the apparel category, there are two slabs. Number one, that items which are below twenty five hundred rupees will be priced at five percent and items which are priced upwards of twenty five hundred rupees.
15:32will be charged at eighteen percent. So we'll come to the five percent one in just a bit.
15:36But we spoke to several consumer, several retail chains here, several independent labels, and they essentially were of the opinion that they're not going to pass on the burden of increased GST on to consumers.
15:48This at least till the time the festive season is on. So for at least for the next two, three months, they're not going to be raising the price and they're going to be absorbing the prices.
15:57The festive demand that is currently being seen in terms of items that are priced below twenty five hundred rupees, which attract a GST of five percent.
16:09Well, there are e-mailers which have been sent by these companies.
16:14They are also sort of making sure that consumers are sent reminders as far as, you know, their store messages are concerned.
16:23So that's essentially the largely the exercise that's currently being undertaken as far as apparel sector is concerned.
16:29And some are ready to pass on the benefits to consumers on top of the decreased GST percentage of five percent.
16:37So, for example, this store, like I was talking about, it has a 50 percent discount on top of the lower GST in the categories that are upwards of twenty five hundred rupees.
16:47Well, they will also be sort of absorbing the cost, at least for now.
16:51This reform is not just on rationalizing things.
17:09It's also on structural reforms.
17:11It's also on ease of living.
17:13Common man items such as hair oil, toilet soap, baths, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware and other household articles have all come to fight.
17:27It's also on the cost of living.
17:57Finance Minister also had an opportunity to be interacting with shopkeepers.
18:11In fact, she was in the natural capital in Lakshmi Nagar to be looking at what the ground reality of this implementation is looking like.
18:19In fact, in the visual, she's seen interacting with them as well to understand how the bachat utsav for the GST rate rationalization is happening.
18:27More importantly, we know when this policy push was announced, there was so much of excitement in terms of how that is going to pan out.
18:34But when you talk about a policy push, you also want to look at how implementation on ground reality, is that something that consumers are able to get?
18:42And that's essentially what the finance minister was able to do while, of course, talking to shopkeepers in the natural capital to really get perspective as far as that is concerned.
18:52But those are the visuals that we are showing for you as far as she was there.
18:56In fact, she also wanted to find out how this is really for customers with that GST rate rationalization.
19:02In fact, she also thanked them for their feedback.
19:05Let's also put into perspective that the finance minister encouraged everyone to buy and sell made-in-India Swadeshi products.
19:11Very important messaging, considering the fact that Prime Minister Modi also, when he had the opportunity to again address the country yesterday,
19:18put that into perspective that ultimately it is that particular posturing that they want to look at.
19:24And of course, earlier today, the Prime Minister also interacted with traders and entrepreneurs in Itna Nagar as GST rates have come into effect today.
19:32So, we're not just talking about what the finance minister here had an opportunity to do.
19:36So, because one thing that we have to remember with this policy push is that the complexity of this which was spoken about,
19:43and that's why it's very important in terms of when she had this opportunity to be in conversation with them,
19:49she was talking about that earlier feedback that came in.
19:52And then, of course, we saw how the government managed to give this particular opportunity, this bonanza,
19:58if many call it Diwali before Diwali, and rightly so.
20:01Because now what we see in large numbers, and which we've been able to show you in the show today as well,
20:07whether it's the North, the South, the East or the West,
20:10it is the fact that the consumers have had the opportunity to just do this on day one.
20:15So, it is a longer story to be unfolding.
20:17But let's also quickly move on to the fact that Prime Minister Modi was in Itna Nagar,
20:22and in fact, he was also seen there overseeing the rollout of GST 2.0,
20:26but the Prime Minister had the opportunity to be speaking about the same.
20:30But what exactly did Prime Minister Modi say?
20:32Let's listen to it.
20:33Thank you very much.
21:03Thank you very much.
21:33Thank you very much.
22:03Thank you very much.
22:33Thank you very much.
23:03ET now have put into perspective how just the day one of GST rat ratization has happened.
23:09We continue to put that into perspective.
23:11But for the moment, that's all that I have for you in this edition of News Now.
23:15Thank you very much for joining me this evening.
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