The German car giant Mercedes-Benz delivered its biggest bulk order last month: 150 cars worth a total of 650 million rupees (Dh53m).
The order came not from financial tycoons and industrial leaders, but from a small group of mostly middle-class Indian professionals, including doctors and lawyers, in Aurangabad, a sleepy industrial town in western India best known for its ancient caves and arid farms.
Just before the Diwali festival, the group got together to order swanky new models of the car, which is priced at between 2.5m rupees and 9m rupees.
Wilfried Aulbur, the chief executive of Mercedes-Benz in India, said: "The deal is representative of the face of a new India, where smaller cities are driving economic prosperity."
The deal, observers say, is not just a sign of the growing wealth in India's small towns, but also growing consumer confidence amid the world's second-fastest pace of economic expansion.
With rising incomes and aspirations, millions of upwardly mobile middle-class Indians are shedding the spartan lifestyle of previous generations and adopting a new attitude to spending.
Straight after the global economic meltdown, India's free-spenders, facing the dour prospects of job cuts and shrivelling salaries, tightened their purse strings. But with a much-improved economic outlook - the economy is poised to grow at 8.5 per cent this year - the lost consumer confidence is returning.
It is providing a much-needed stimulus to the country's retail market, which is expected to grow next year to more than US$400 billion (Dh1.46 trillion), according to India's Associated Chambers of Commerce and Industry.
With 129 points, India topped the market researcher Nielsen's global consumer confidence index in the third quarter of this year, 12 points ahead of Thailand in second place.
Globally, consumer confidence fell three points to 90 amid growing concerns in developed economies about poor economic recovery.
A consumer confidence level below the baseline of 100 on the index "reflects the reality that consumers around the world remain largely pessimistic about job prospects, personal finances and their ability to buy the things they want and need over the next year", says Nielsen in its global consumer report released this month.
Consumer confidence declined in 19 of the 53 countries surveyed by Nielsen but the mood was strikingly different in the booming Asian markets. Nine out of the top 10 countries on the ranking are in the Asia-Pacific region.
According to Euromonitor International, a global business research company, consumer expenditure in emerging market economies such as India, China and Brazil grew by 66 per cent to $7.5tn between 2000 and last year. This year, consumer spending is expected to touch $8tn.
In India, nine out of 10 people surveyed by Nielsen expressed satisfaction with their job prospects in the next 12 months. Eight out of 10 expressed similar sentiments about their personal finances for the same period.
Buoyed by optimism about the economy, six out of 10 Indians said they were inclined to splurge on shopping that had been put off during the slowdown.
"Indians appear to have loosened their purse strings compared to previous quarters," said Justin Sargent, the managing director for consumer research at Nielsen India.
"While some of this propensity to purchase can be attributed to the advent of the festive season, a combination of factors will lead to greater spending and more enthusiastic buying behaviour as marketers tap into the confidence that the Indian consumer seems to be exuding."
India, experts say, is in a virtuous long-term cycle in which rising incomes lead to increasing consumption, which in turn creates more business opportunities and employment, further fuelling GDP growth and reducing poverty.
McKinsey India, a subsidiary of the international consultancy, produced a report in 2007 which said: "Private consumption has already played a much larger role in India's growth than it has in that of other developing countries." McKinsey India expects the country's retail industry to grow fourfold by 2025.
Fewer than three in 10 of India's 1.2 billion people are classified as middle class, which the New Delhi-based National Council of Applied Economic Research defines as earning between $4,500 and $22,000 a year. This group accounts for 75 per cent of major consumer goods sold in India.
With the formidable spending power of the middle class, consumption soared to 17tn rupees and was expected to peak at 70tn rupees by 2025, vaulting India into fifth place among the world's largest consumer markets. India's retail market was ranked by the consultancy AT Kearney as this year's most attractive emerging market for investment. Retail trade comprised between 8 and 10 per cent of the country's GDP in 2007. With the development of the organised retail segment, retail's share rose to 12 per cent last year.
To tap into the growing market, the advertising spending of companies on placements in the mainstream media - television, newspapers and magazines - grew by almost a third to $1.9 million in the second quarter compared with the same period last year, among the highest growth rates in Asia, according to Nielsen's recent survey on media ad spending.
But despite the exuberance, many Indians are concerned about rising food and utility prices. India's headline inflation, which the Reserve Bank of India says is a "dominant concern", touched 8.6 per cent last month, higher than the central bank's prediction of 6 per cent.
In a bid to tame fast-rising consumer prices, the central bank this month boosted the repurchase rate, the interest rate at which the central bank lends to commercial banks, and the reverse repurchase rate for the sixth time this year.
Expressing concerns over inflation, 65 per cent of respondents in the Nielsen consumer survey said they put their discretionary income into savings and investments. That figure represents a 2 percentage point increase from the second quarter.
Mr Sargent said: "Indian consumers are confident about their economy and have shown similar confidence levels as [in] the second quarter of 2010. However, these levels have not increased like they did in the first two quarters of 2010.
"This reflects the fact that consumers are wary of the uncertainties that surround global economic conditions."
business@thenational.ae
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
Like a Fading Shadow
Antonio Muñoz Molina
Translated from the Spanish by Camilo A. Ramirez
Tuskar Rock Press (pp. 310)
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%3Cp%3EEncourage%20innovation%20in%20the%20metaverse%20field%20and%20boost%20economic%20contribution%3C%2Fp%3E%0A%3Cp%3EDevelop%20outstanding%20talents%20through%20education%20and%20training%3C%2Fp%3E%0A%3Cp%3EDevelop%20applications%20and%20the%20way%20they%20are%20used%20in%20Dubai's%20government%20institutions%3C%2Fp%3E%0A%3Cp%3EAdopt%2C%20expand%20and%20promote%20secure%20platforms%20globally%3C%2Fp%3E%0A%3Cp%3EDevelop%20the%20infrastructure%20and%20regulations%3C%2Fp%3E%0A
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Where can I submit a sample?
Volunteers can now submit DNA samples at a number of centres across Abu Dhabi. The programme is open to all ages.
Collection centres in Abu Dhabi include:
- Abu Dhabi National Exhibition Centre (ADNEC)
- Biogenix Labs in Masdar City
- Al Towayya in Al Ain
- NMC Royal Hospital in Khalifa City
- Bareen International Hospital
- NMC Specialty Hospital, Al Ain
- NMC Royal Medical Centre - Abu Dhabi
- NMC Royal Women’s Hospital.
Killing of Qassem Suleimani
Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
Company: Instabug
Founded: 2013
Based: Egypt, Cairo
Sector: IT
Employees: 100
Stage: Series A
Investors: Flat6Labs, Accel, Y Combinator and angel investors
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
North Pole stats
Distance covered: 160km
Temperature: -40°C
Weight of equipment: 45kg
Altitude (metres above sea level): 0
Terrain: Ice rock
South Pole stats
Distance covered: 130km
Temperature: -50°C
Weight of equipment: 50kg
Altitude (metres above sea level): 3,300
Terrain: Flat ice
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
Three ways to boost your credit score
Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:
1. Make sure you make your payments on time;
2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;
3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
COMPANY%20PROFILE
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A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
BACK%20TO%20ALEXANDRIA
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The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
