Bharat, is celebrated for its rich cultural heritage, which spans centuries and includes a vast array of traditions, languages, cuisines, art forms, and philosophies. This immense cultural wealth is vividly expressed in the diverse festivals celebrated throughout the country, each rooted in unique regional practices, religious beliefs, and historical events. The festivals of Bharat are not merely celebrations but reflections of the nation’s philosophy, social unity, and reverence for nature. They symbolise Bharat’s resilience, adaptability, and enduring cultural richness, sustaining a connection to heritage in an ever-evolving world.
Deepawali, also known as the “Festival of Lights,” is one of the most significant and celebrated festivals in Bharat and for many communities worldwide. It holds immense cultural, religious, social, and economic importance, and its celebration has evolved over centuries. Deepawali commemorates the triumph of good over evil, light over darkness, and knowledge over ignorance. In Hindu mythology, it celebrates Bhagwan Ram’s return to Ayodhya after defeating the demon king Ravana, symbolising the restoration of righteousness. It is also dedicated to Lakshmi Ma, the deity of wealth, prosperity, and good fortune. People pray for prosperity in the coming year, and it’s seen as an auspicious time for new beginnings and investments.
Deepawali’s significance is multifaceted, weaving together history, religious, cultural traditions, and social values. It serves as a powerful reminder of the importance of light, hope, unity, and kindness, all while supporting communities and economies. Celebrated with joy and reverence, it continues to be a cornerstone of cultural identity and togetherness, transcending boundaries and bringing people together in celebration of shared values and aspirations.
The economic impact of Diwali, one of the most significant festivals in Bharat, extends across multiple sectors and drives substantial economic activity annually. The festival creates a ripple effect on various industries, including retail, real estate, tourism, finance, and manufacturing. The lighting up of 25 lakhs diyas at Ayodhya post the Pran Pratishtha at Shri Ram Temple, is self explanatory of the economic distribution of wealth taking place this year at Ayodhya connecting each man in the supply chain of making and selling of diyas, oil, cotton and other related things.
An overview of its economic impact is as follows:
1. Retail Sector
Surge in Consumer Spending: Diwali is marked by significant consumer spending. People buy items ranging from clothes and electronics to gifts and sweets, leading to a boom in retail sales. According to estimates, retail sales can increase by 30-40% during Diwali compared to regular periods.
Jewelry and Luxury Goods: The purchase of gold and luxury items is customary, especially during the festival of Dhanteras, which precedes Diwali. Jewelry stores see a marked increase in sales, with many companies relying on Diwali for a substantial portion of their annual revenue.
2. Manufacturing and Production
Increased Production: Demand for products like decorative items, diyas (lamps), lights, firecrackers, and sweets spikes, leading to increased production in these areas. Small businesses and artisans involved in crafting traditional goods benefit significantly.
Employment Generation: In sectors like firecracker production, textiles, and sweets, demand for seasonal labor increases, providing employment opportunities and a temporary boost to local economies.
3. Real Estate and Auto Industry
Boost in Property Sales: Deepawali is considered an auspicious time to invest in property. Real estate companies offer discounts, and homebuyers often finalize purchases during this time, leading to a spike in property sales.
Automobile Sales: Car manufacturers and dealerships also record higher sales as people consider the festival an ideal time for buying vehicles. Diwali promotions from car companies and financing options further drive sales.
4. Tourism and Hospitality
Domestic Tourism: Many families travel to their hometowns or visit popular tourist destinations, resulting in increased demand for transportation, accommodations, and hospitality services.
Hospitality Sector: Hotels, restaurants, and event spaces see increased bookings for celebrations, weddings, and family gatherings, leading to higher revenue in this sector.
5. Financial Services
Stock Market: Deepawali includes the symbolic “muhurat trading” session in Indian stock exchanges, during which traders believe that buying stocks is auspicious. While it’s primarily symbolic, it does draw more participation and trading activity.
Banking and Loans: Financial institutions experience a rise in loan applications as people often finance large purchases like homes, vehicles, and electronics. The availability of festive offers on interest rates and reduced processing fees increases demand.
6. Impact on Small Businesses and Artisans
Small-scale industries, especially those focused on traditional goods like pottery, handmade decorations, and sweets, see an influx of orders. This impact can be transformative for local economies, as many families and communities rely on Diwali income for the rest of the year.
7. E-commerce Sales
Online shopping surges as people buy gifts and festive essentials. E-commerce platforms offer heavy discounts and launch special Deepawali sales, leading to record-breaking transactions. The “Great Indian Festival” and other similar events by online retailers contribute billions of dollars to the economy.
With e-commerce, the trend of Q-commerce (Quick Commerce) has gained significant place in big cities. Under this trend, people are increasingly using on-demand delivery, allowing them to quickly receive products for daily needs. This service is especially being beneficial for those who cannot go out for groceries due to busy schedules. The option to order essential items from home in just a few minutes or hours provides them with convenience. During Diwali, this trend’s popularity has led to a 15-20 per cent growth on Q-commerce platforms this year, reflecting the rising demand for this trend.
Broader Economic Impact
The collective rise in spending, production, and employment positively affects India’s GDP during the quarter. For many businesses, Deepawali represents a significant portion of annual revenue. Diwali also influences international trade, with countries exporting products to India, including electronics, luxury goods, and raw materials for manufacturing.
The growth in sales in 2024
Despite elevated inflation, the consumers have demonstrated remarkable spending during the Diwali season. According to the Confederation of All India Traders (CAIT), festive trade has reached a record Rs 1.25 lakh crore, surpassing their optimistic forecast of Rs 1 lakh crore. This marks the highest festive trade figure in the past decade. CAIT projects that total consumer spending by the end of this year will approach Rs 3 lakh crore. This surge in spending underscores the resilience and optimism of Indian consumers, even amidst rising prices. The festive season has traditionally been a significant period for economic activity, and this year’s figures highlight its critical role in driving economic growth.
Lighting up to Aatmanirbhar Bharat
Bharat’s festivals play a significant role in supporting the vision of Aatmanirbhar Bharat (Self-Reliant India), a campaign launched by the government to boost the country’s economic independence and resilience by encouraging local production and consumption. Deepawali across Bharat contribute to this vision by driving demand for locally made products, fostering entrepreneurship, supporting artisans, and promoting traditional industries. Festival creates a strong demand for indigenous products like khadi clothing, handloom fabrics, organic colors, and locally crafted decorations. During Deepawali, there’s a trend toward using traditional items like handmade lamps and cloth decorations. Campaigns advocating “Vocal for Local” promote these products, encouraging people to choose domestically produced goods that support local industry and craftsmanship. By embracing local products and services during festivals, the people of Bharat actively contribute to a self-reliant economy, helping fulfill the vision of Aatmanirbhar Bharat in a culturally meaningful way.
Diwali contributes considerably to India’s economy, offering an annual economic boost and reinforcing consumer sentiment. The festival’s economic impact reflects both a surge in short-term economic activity and a reinforcement of cultural traditions that influence spending behavior across diverse sectors.
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