Who didn’t love Diwali as a kid? It was the ultimate blast—literally! Bursting firecrackers with friends and family, homemade Besan Ke Laddu and Chakli, rangolis, and the warm glow of Kandel. And let’s not forget Diwali shopping. All this made the dreadful Diwali ki safai worth it.
Fast-forward to today. The festival of lights is now bigger, brighter, and more extravagant. Homemade sweets have given way to bespoke mithai boxes, DIY decorations for designer lights, and local market shopping to mall-hopping and online shopping. The numbers say it all—Diwali is now a staggering Rs 3.75 lakh crore market.
So, what has driven this explosive growth? Let’s take a look!
The Roots of Diwali
From Lord Ram, Lakshman, and Sita’s return to Ayodhya after 14 years in exile to Krishna defeating Narkasura, Lord Mahavir’s spiritual awakening, and Goddess Lakshmi’s birth, the five-day fervor has taken over India for different reasons for centuries.
Diwali gained prominence during the ancient kingdoms of India between the 4th and 6th centuries. Early Hindu texts, like the Skanda Purana, mention its significance.
Kings Blending Traditions
From 1526 to 1857, emperors like Akbar and Shah Jahan participated in Diwali celebrations during the Mughal Empire.
Rajput kingdoms from the 16th to 19th century also enthusiastically observed the festival, blending Hindu and Islamic traditions.
From Colonial Times
The British influence introduced new elements to the festival, such as Western-style fireworks. Beyond a religious festival, Diwali became a time for social gatherings and community events.
As India gained independence, it became a national festival celebrating rich cultural heritage.
Regional variations, like Naraka Chaturdashi and Kali Puja, showcased India’s diversity.
Businesses and artisans flourished with yearly purchases of new utensils, clothes, and diyas, whitewashing the house, feasting, and exchanging sweets and gifts.
Changed The Festival Economy
With the Liberalization, Privatization, and Globalization (LPG) reforms introduced in 1991, people had more disposable income and increased spending power.
The digital revolution of the mid-2000s marked the beginning of an e-commerce era, unleashing a buying frenzy that continues to grow.
As most festival sales now happen online, marketplaces have made total sales of Rs.55,000 crore in just the first week of October.
During Diwali Shopping Spree
Diwali brings in big sales not just for big brands but also for small and medium businesses. In the 2023 Amazon Great India Festival, SMEs saw a 35% sales jump.
Over 38,000 sellers hit their highest single-day sales, 750 sellers earned crores, and 31,000 made lakhs. With 1.1 billion visits and 80% sales from Tier 2/3 cities, the festival economy has grown significantly online.
Of Diwali Celebrations
From ‘green’ firecrackers to the humble Sonpapdi making way for Gulab jamun parfait or Kaju Katli changing to chocolate-filled versions, Diwali has modernized, and the celebrations are grander than ever.
Sample this: the sweets market share is more than Rs.1.25 lakh crore. What’s Diwali without gifts?
Right enough, the gifting market is pegged at a whopping Rs 300,000 crore globally, of which India has a share of Rs 200,000 crore, with corporate gifts at Rs 12,000 crore.
Has Turned Festival of Spending
The splurge will only get bigger in Diwali 2024, with celebrators expected to spend an estimated Rs 18.5 lakh crore, compared to last year’s Rs 3.75 crore. Many households will spend more than Rs 10,000, with 40% on home decor and 38% on fashion and beauty.
Although the celebrations have changed, Diwali shines bright on businesses, the festival’s true spirit is still about mithai and togetherness!
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
