Festive Frenzy: Diwali, and Weddings Set to Drive ₹14 Lakh Crore Spending!

Festive Frenzy: The festive season in India always indicates an increase in consumer spending, and this time experts believe that this season may break the old record. According to the latest report of Bank of Baroda, the total consumer expenses are expected to be between Rs 12 lakh crore to Rs 14 lakh crore during the festive season due to the recent cuts in GST rates. The report also states that a large part of this expenditure will be on weddings and festivals related activities.

Biggest expenses on weddings

According to the report, there are about 1 crore marriages in India every year. About 60 percent of these marriages take place between October and December, which is traditionally considered to be auspicious time. This is the reason that the expenses on weddings along with festivals are also quite large. Bank of Baroda estimates that marriage expenses alone are expected to be between Rs 4.5 lakh crore to Rs 5 lakh crore. This expense includes things like wedding ceremonies, reception, gifts, decorations and food.

Demand of clothes, electronics & automobiles on rise

The report also states that this year the demand for clothes, electronics and automobiles will also increase significantly. Recent changes in GST rate structure have played an important role in increasing consumer spending. Although everyday FMCG and food items have not been included in this study, in addition to these, these sectors are expected to benefit from consumer expenses. Along with this, demand can also increase in the travel sector, especially for airlines and railway services, as people will spend to travel on festivals and wedding occasions.

Kat's estimate

On the other hand, a report by the Confederation of All India Traders (CAIT) estimates the total trade for Diwali this year to be around ₹4.75 lakh crore. The estimated share of expenditure across various sectors is as follows: food products and groceries 13%, fruits and dry fruits 3%, sweets and snacks 4%, textiles and apparel 12%, electrical goods 4%, electronic products 8%, builders' hardware 3%, home decor 3%, cosmetics and personal care 6%, utensils and kitchenware 3%, puja items 3%, confectionery and bakery 2%, furnishing and furniture 4%, gift items 8%, and other services such as automobiles, toys, packaging, stationery, and travel 24%. 

Impact on India's economic growth

The report also states that India is one of the fastest growing major economies in the world. Although tariffs and business uncertainties remain globally, India's economic growth remains stable due to domestic consumption. In this festive season, consumer spending boom will not only be beneficial for traders, but it will also help in strengthening India's economic condition. In this way, spending is expected to increase in major areas such as weddings, clothing, electronics and travel in this year's festive season, and it can lead the total consumer expenses to a new level.