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The wedding boom, coupled with festivals like Diwali and Dussehra, typically results in increased consumer spending across sectors. | Representational
With the wedding season fast approaching in India, the country is set to become the world’s second-largest wedding market. The Confederation of All India Traders (CAIT) forecasts that between November and mid-December, approximately 3.5 million weddings will take place, driving a significant surge in spending.
Weddings during this period are expected to generate a staggering Rs 4.25 trillion in expenditure, according to another calculation made in Prabhudas Lilladher’s ‘Band, Baaja, Baarat and Markets’ report. This figure represents a significant increase from last year’s 3.2 million weddings.
Economic impact and industry recovery
The Indian wedding industry is experiencing a robust recovery, growing at an annual rate of 7-8 per cent, as reported by wedding planning site WedMeGood. India hosts approximately 10 million weddings each year, contributing to an estimated $130 billion in expenditures annually, making it the fourth-largest industry in the country.
The CAIT survey reveals that from January 15 to July 15 of this year, over 4.2 million weddings generated an estimated expenditure of Rs 5.5 trillion. The industry’s growth is further supported by recent policy changes, such as the reduction in gold import duties from 15 per cent to 6 per cent. This move is expected to boost gold purchases, driven by the precious metal’s cultural significance and investment appeal.
Impact on the stock market
The wedding boom, coupled with festivals like Diwali and Dussehra, typically results in increased consumer spending across sectors such as retail, hospitality, jewellery, and automobiles. This surge in expenditure positively impacts the Indian stock market, reflecting the economic importance of the wedding season.
Meanwhile, it is expected that the recent cut in gold import duties from 15 per cent to 6 per cent is likely to drive gold purchases nationwide in the upcoming festive and wedding seasons.
Realising the economic potential, the Indian government is also focusing on attracting international wedding events to boost tourism, aiming to generate around Rs 1 trillion from this sector. On several occasions, Prime Minister Narendra Modi has also urged high net-worth individuals to wed in India.
First Published: Sep 19 2024 | 5:44 PM IST
