Diwali has long been more than just a festival of lights in India; it's a time for financial reflection and investment. Traditionally, households and businesses mark the occasion by purchasing gold, reviewing accounts, and planning finances. While these customs remain important, modern practices are reshaping how they are observed. Digital ledgers have replaced physical account books, and younger investors are exploring mutual funds and stock markets alongside gold.
The festival's economic impact extends beyond personal finances. For many businesses, Diwali marks the start of a new financial year, with rituals like Chopda Pujan symbolizing a fresh beginning. Although digital accounting systems are now standard, some traditional businesses still maintain bahi-khatas to track net worth from one Diwali to the next. Festive-period sales are a key metric for these businesses, offering insights into their financial health.
Gold remains a central part of Diwali traditions, with Dhanteras driving significant demand. This year, gold prices eased from record highs, encouraging more purchases. The All India Gem & Jewellery Domestic Council estimated gold sales at around Rs 60,000 crore, up 15-20% in value from the previous year. Demand for diamond jewellery also grew by 25-30%, reflecting broader trends in consumer spending.
The festive season boosts various industries, from automobiles to e-commerce. Ravi Kapoor of PwC India noted that a quarter to 30% of automobile and durable goods sales occur during this period. While higher spending indicates economic activity, economists caution that the source of this spending matters. Dr Rohit Kumar Singh emphasized the need to distinguish between purchases supported by improved incomes and those financed by stretching household budgets.