A festive spirit permeates every corner as Diwali, the festival of lights approaches. Diwali is celebrated by recolouring homes, decorating them with flower arrangements, traditional light diyas - and sparkling lights. People are preparing sweets and other goodies as they prepare to celebrate. The busyness and the joy are everywhere. Diwali celebrations are vibrant and festive in all types of cities, whether they are metropolises or smaller towns.
While having a profound effect on a country’s social and cultural landscape, festivals also have a major impact on its economy. The trade of goods and services is often influenced by consumer sentiments and religious beliefs, which are underlying festivals throughout the world.
In India, Diwali and its preceding weeks are traditionally a time of consumption and investment. The volume of demand and sales during this period serves as a barometer of the health of Indian business and the economy. Diwali marks the start of a new financial year for many businesses and several sectors.
Textiles, automobiles, consumer durables, electronics, jewelry, real estate, and food sales increase around this time of year. Since many people travel around Diwali for their holidays, the tourism sector also experiences growth. The unorganized sector also gains during this festive season. Several factors contribute to the increased employment of artisans in rural areas, including higher sales with an increase in employment as a cascading effect.
Today, the millennials and youth of New India are mostly using and promoting Indian products, especially during festivals, which directly impact the unorganized sector of the economy. Among developing nations, the artisan industry is second to agriculture as the largest employer for women, employing a large percentage of them. Diwali festival increases their earnings, changing their economic standing.
As shops see brisk sales, e-commerce is also booming as platforms have expanded their reach and now cover many smaller towns and cities. In the recent season, e-commerce giants like Amazon and Flipkart have given heavy discounts to boost online sales among the youth of New India. In addition, the stock market does well during Diwali since people consider it auspicious to buy shares.
To conclude, we can definitely state that Diwali has an economic impact on the economy since consumers tend to spend more during this period, with many upgrading their products. The consumption boom will not only spur industrial activity and investment but also increase employment in the country, allowing us to use our strengths to their full potential and build a stronger nation!
(Article by: Chinmay Khedekar)