Hit by DeMo, GST, corporates slash gifts by 35-40%

Tribune News Service

Lucknow, October 18

Reeling under disruptions arising out of demonetisation and GST rollout, corporate India is going rather lukewarm in Diwali gifts, slashing the budget under the head by at least 35-40%, Assocham said.

A survey by industry chamber Assocham showed that the reduction in gifts from corporate houses was in sync with low-key festivities due to slowdown concerns and pressure on their balance sheets.

The industry body said the reduction in gifts from corporate houses to their associates, networked partners, employees and other key personalities was more for outside connects than employees who more or less received their annual gesture from their employers.

“However, there has been certainly a downward impact on bonus payments with several corporates reeling under debt and cutting costs in their overall operations. Besides, disruptions arising out of demonetisation and rollout issues of the Goods and Services Tax (GST) have affected the overall sentiment,” it 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, Assocham secretary general DS Rawat said.