Diwali's impact on economy: Retail business may cross 1.5 lakh crore, gold sales 20% higher

As India celebrates the festive season of Diwali, take a look at its impact on the economy of the country.

Diwali's impact on economy: Retail business may cross 1.5 lakh crore, gold sales 20% higher Pic Credit: File Photo

(Authored by Abhishek Sankhyayan)

Diwali is just not a religious or cultural festival; it has a huge impact on our economy as well. We all have our buying list for Diwali sales. The festive season falls in the mid of the Financial year (April to March). The season itself not only gives a hint about the current economic condition but also impacts the sentiment of the market for the rest of the financial year. So, let's have a look at the industry's view on festive season sales.

The festival season's retail business may touch 1.5 lakh crores

CAIT National President Shri B C Bhartia & Secretary General Shri Praveen Khandelwal said that from the first Navratri (26 September) till Dhanteras till now, retail business of 1.25 lakh crores has been done across the country. Business worth more than 25,000 crores has happened in Delhi alone. Still, there are 10 days left in the festival season, so the retail business can surpass the 1.5 lakh crores mark this year. 

Record sales of the decade expected in the personal vehicle segment

The auto sector has been a strong pillar of our economy as 49% of the country's manufacturing GDP comes from the automobile sector only. This year's record high prices of petrol and diesel have not affected auto sales much. Current year big auto companies have also launched many new models.

Manish Raj Singhania, President, the Federation of Automobile Dealers Associations of India (FADA) said, "Navratri, Dhanteras, and Diwali have been among the greatest periods for the business. Considering the remarkable festive season and a robust booking log, we are confident that for PV, this will be the best festive year in a decade. While for 2-Wheelers we are seeing robust numbers, the next 2-3 months will define if we are out of the woods or not.”

Best year for gold sales in last 4 years 

Traditionally people buy gold on Dhanteras. This year jewelry shops have seen a surge in stores. The absence of Covid restrictions has paved the way for grand weddings again.

Gurmeet Arora, General Secretary, Diamond and Jewelry Industry Association said, "Our business is growing from last year as I can see around 15 to 20 percent jump in the business and if we compare the gold rate of last year, we are up by 2500 per 10gm last year gold rate was around 49500 and this year around 52000. But we are still behind from 2018 year where we got Bumper business."