Mumbai: India is set for over 35 lakh weddings between November and mid-December this year, which is expected to result in a substantial expenditure of Rs 4.25 lakh crore.
The country hosts around 1 crore weddings annually, making it the second-largest wedding market in the world. Reports indicate that this sector is the fourth largest industry in India, with annual spending reaching $130 billion and generating millions of jobs.
From January 15 to July 15, 2024, the industry recorded more than 4.2 million weddings, resulting in an estimated expenditure of $66.4 billion (Rs 5.5 lakh crore), according to a survey by the Confederation of All India Traders (CAIT).
Prabhudas Lilladher’s latest report highlights that the recent reduction in gold import duties from 15% to 6% is expected to lead to a significant increase in gold purchases across the country, especially during the forthcoming festive and wedding seasons.
Given gold’s cultural and religious significance, alongside its reputation as a valuable investment, this reduction is anticipated to greatly enhance demand, the report noted.
Additionally, the report pointed out that the stock market often experiences an uptick during the festive and wedding periods, primarily driven by increased consumer spending.
Sectors such as retail, hospitality, jewellery, and automobiles stand to gain significantly from this rise in demand. Contributing factors include economic stability, low inflation, favorable government policies, and changing consumer preferences.
While the impact may vary across different sectors, the overall effect on the Indian economy is positive.
The report also stated that higher spending on premium goods and services, including airlines and hotels, boosts revenue. This increased demand improves profit margins and drives stock prices upward, supporting overall economic growth.
Meanwhile, the government is also looking to boost tourism by promoting India as a premier destination for international weddings, aiming to capture a share of the Rs 1 lakh crore currently spent on destination weddings abroad. IANS
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