India Inc, this Diwali is severely cutting back itscorporate gift budgets by a whopping 45-50 percent, as costs balloon andearnings together with profit margins shrink by the day, according to a justconcluded ASSOCHAM survey. The Associated Chambers of Commerce and Industry ofIndia (ASSOCHAM) carried out a survey during the month of October under theaegis of its ASSOCHAM Social Development Foundation (ASDF) to ascertain the‘Diwali Gifting Intentions of India Inc.’
The ASSOCHAM representatives interacted with about 150different companies with an employee strength of 500 and plus operating in thedomains of pharma, BFSI (Banking, Financial Services and Insurance), auto,hospitality, FMCG, manufacturing, energy and infrastructure sectors in 10cities “ Ahmedabad, Bangalore, Chennai, Delhi-NCR, Hyderabad, Jaipur, Kolkata,Lucknow, Mumbai and Pune.
“Diwali, apart from being India’s most celebrated festival,is a wonderful opportunity for the corporates to express their gratitude andcement their ties with their respective employees, associates and clients,”said ASSOCHAM secretary general, D.S. Rawat.
“But just like the last year, this year too the businesshouses are bracing for a muted Diwali affair evidently as majority ofrespondents of ASSOCHAM survey have tightened their purse strings and haveslashed their budgets for Diwali gift s significantly,” said Mr Rawat.
Of the 150 companies interviewed, about 30 of them said theyhave decided to entirely do away with gifting concept this year and would usethe extra funds to better use, highlights the ASSOCHAM survey.
While about 90 respondents i.e. the majority of the total ofthose interviewed said they are going to spend less on gifts for theircorporate connections this year and have drastically scaled down their budgetsby about 45-50 per cent in this regard.
Many of these even said that although they have no interest toindulge in such expenses, but they have to go ahead with it just because it hasbecome an annual tradition of sorts and thus can’t be avoided.
Corporates blamed the prevailing economic slowdown both inIndia and abroad together with decelerating industrial growth leading to anupward spiraling inflation, high cost of credit, dropping operating profits anddifficult trading conditions for going slow this festive season.
