FESTIVE SEASONS: HOW INDIAN CELEBRATIONS DRIVE ECONOMIC GROWTH AND GLOBAL INFLUENCE

Ms Shivangi Makade
Assistant Professor
Faculty of Commerce & Management
shivangi.makade@kalingauniversity.ac.in

Indian festivals serve as significant economic stimulants in addition to being cultural events. India sees a spike in economic activity every year around holidays like Diwali, Durga Puja, and Ganesh Chaturthi, which helps industries ranging from retail and e-commerce to tourism and exports. This festival-driven economy supports millions of small companies and craftspeople and has an impact on everything from consumer spending to international trade.

Retail Boom and Consumer Spending
The retail industry is greatly boosted by holidays like Diwali, which is the busiest shopping season. Diwali shopping alone brought in almost ₹3.75 lakh crore in 2023, demonstrating the extraordinary demand for apparel, electronics, presents, and decorations. Large e-commerce companies like Amazon and Flipkart take advantage of this time of year by offering steep discounts, making their products more accessible to both urban and rural customers.
Their economic significance is highlighted by the fact that festival-driven sales can account for as much as 30% of yearly retail sales.

The Growth of Online Shopping
E-commerce has grown to constitute a significant portion of consumer spending over the holiday season. It was predicted that online sales during Diwali would total $12 billion in 2024, a 23% rise over the previous year. Due to last-minute shopping tendencies, quick commerce—with delivery timeframes as short as an hour—saw impressive development. This move to online platforms has helped local sellers and artists sell to a nationwide audience, bringing the festive economy to rural and isolated locations.

Increase in Travel and Hospitality
Tourism is significantly impacted by festivals as well. In addition to drawing millions of domestic tourists, West Bengal’s Durga Puja also draws tourists from abroad.The hospitality industry, which includes lodging, transportation, and small businesses, benefits from this spike in tourists. Additionally, the Indian diaspora outside enthusiastically observes these holidays, raising awareness of Indian culture globally and opening up new travel options.

Jobs and Assistance for Regional Vendors
India’s informal economy depends heavily on its festivals. The holiday season is a major source of revenue for temporary employees, small sellers, and artisans. During these months, there is a substantial increase in demand for handmade goods, traditional sweets, and decorations, which leads to the creation of seasonal job possibilities. This is particularly important for maintaining livelihoods and preserving Indian workmanship in rural areas where traditional crafts are made.

Increasing International Trade and Cultural Impact
By raising demand for traditional Indian goods, Indian festivals also support international trade. For instance, demand in nations with a sizable Indian diaspora, like the United States and the United Kingdom, drove a 6.2% increase in exports of textiles, handicrafts, and confections during Diwali in 2023. India’s position in international marketplaces is strengthened by this demand for Indian goods, which underlines the festivals’ worldwide importance.

Prospects for the Future
Festivals will probably have a greater economic influence in the future as India’s economy expands and its internet infrastructure advances. E-commerce will continue to expand into rural regions, enabling more people to shop during the holidays. Additionally, India’s tourism industry is anticipated to benefit from international interest in its cultural festivals, drawing more tourists from abroad each year. Festivals will continue to be essential in advancing India’s economy and culture internationally, especially as exports of Indian commodities increase.
References
The New Indian Express, Diwali retail sales in India, 2023.
Emerald Insight, Economic contribution of Ganesh Chaturthi and Durga Puja.
IndiaTracker, Festival economy and global impact.