Diwali, the festival of lights, not only illuminates homes but also serves as a beacon of hope for the Indian economy and startups.
As families come together to celebrate this auspicious occasion, the business landscape also witnesses a significant surge, reflecting the vibrant spirit of prosperity and abundance. From the bustling markets adorned with colorful decorations to the heightened consumer spending across various sectors, Diwali truly ignites a wave of economic activity, underscoring the resilience and vitality of the Indian marketplace.
As the nation embraces the joyous festivities, the profound impact of this cultural celebration on the economy remains a testament to the enduring spirit of growth and optimism.
According to research, the Diwali industry was up 17% in 2022. There is no doubt that the Diwali Industry is a trillion dollar industry across the globe. People living outside are also a huge contributor when it comes to Diwali business.
Over the last few years, people are turning more towards the Eco-Friendly Diwali and have started using maximum products that are manufactured or made in India.
Diya (small clay lamps) plays an important role in this auspicious festival to keep the spirit alive, people have turned towards “Mitti ka diya” instead of fancy Diya which is imported from other countries to keep the business to us.
Cracker Industry, one of the biggest industries in the country especially at this time of the year. Tamil Nadu is the hub of the cracker Industry, in 2022 the turnover of the industry was 6,000 crores.
People are well aware of the consequences of burning the cracker but when it comes to business it is the most flourishing and profitable business.
Here are some of the businesses that face a peak time during the time of festivities. Let’s delve into how Diwali boosts the Indian economy and which sectors benefit the most during the Diwali season.
- E-Commerce – In recent years, E-commerce has seen explosive growth during the festive season and overall. E-commerce not only provides its customers with convenience but also a wide range of products and flashing deals especially at this time of the year. E-commerce sectors like amazon, flipkart build a huge market and spike huge sales resulting in people turning more towards the E-commerce especially for the gift items.
- Retail Sector- Diwali and shopping goes hand in hand. This time of the year is considered to be the best time to shop for clothes, jewelry, appliances and electronics. It is the most lucrative time for the retailers. Many retailers offer special discounts and promotions which results in customers flocking to the stores to avail the offer resulting in a boost of sales.
- Real Estate- The festival of Diwali is considered to be an auspicious day to invest in anything new. So people usually buy new property, homes, plots specifically during this time. Many developers launch new projects and offer attractive financing schemes during this period. As a result the real estate witness increased inquiry and property transaction.
- FMCG Sector- Fast moving consumer goods are at its peak during Diwali including food, beverages, personal care products and benefits from the demand for items needed for Diwali celebrations. Sweets, snacks, and beverages are consumed in larger quantities during this festive season. Companies often release special Diwali-themed products and gift hampers, further stimulating sales.
- Jewelry- Diwali is also a popular time to buy gold and other jewelry. Most people find it auspicious to invest in precious stones or buy jewelry during Diwali for themselves or as a gift leading to a hike in the jewelry industry.
- Home decor- Diwali is the festive month of the year. People refurnish their houses, they redecorate their places which leads to a great hike in the home decor business. This period witnesses a heightened demand for traditional and contemporary decor items, ranging from intricately crafted diyas, wall hangings, and colorful tapestries to innovative lighting solutions and bespoke festive furnishings.
- Service sector- Service sector at the time of festivities is one of the most flourishing businesses so far. The service sector experiences a substantial boost, aligning with the festive fervor and heightened consumer demand. Various service industries, including travel, event management, and cleaning companies etc, witness a surge in business activity as individuals and families prepare for the celebratory season.
Diwali is a tradition, it is a celebration but it is also a great time to fuel various business sectors resulting in significant growth in the economy. The festive season serves as a reminder that the tradition of the festival and the business related to it goes hand in hand.