The ‘Big fat Indian wedding’ is more than just a slang. A recent report by investment firm Jefferies highlights the economic significance of weddings in India. The $130 billion industry ranks second only to food and grocery and is a major driver of consumption across sectors.
The Indian wedding market is twice the size of the US market. It’s estimated that the average expenditure on a wedding is around $15,000. Interestingly, Indian couples spend approximately twice as much on weddings compared to education. The current average expenditure per wedding is around $14,500, which is around five times India’s per capita GDP of $2,900 and more than three times the average annual household income. The report added that India’s wedding spending-to-GDP ratio is significantly higher than that of other countries.
The report notes that a typical Indian wedding involves five to six functions, hotel accommodations, catering, décor & entertainment. This is more expensive for the rich, who spend more lavishly. The report excludes expenses on jewellery, wedding attire and airfares.
The report further notes that given the sheer size of the industry and its impact, weddings are a key growth driver in India for several categories, ranging from jewellery, apparel, catering, stay & travel, among other sectors. This is reflected in the jewellery industry, where more than 10 per cent of revenues are from bridal jewellery. It also accounts for the largest proportion of the spend, accounting for 25 per cent of the total wedding expenses, followed by catering and events.
Small-scale businesses and individual service providers benefit from this wedding splurge. This is because the industry is highly diversified, with regional players in a better position to address consumer needs. The report also highlights challenges in India’s wedding sector, notably being ‘unorganised’ and ‘highly-fragmented.’
Prime Minister Narendra Modi gave the call ‘Wed in India’ last year, urging people to explore destinations within the country rather than foreign locations.
