India will spend Rs 4.25 lakh crore on 35 lakh planned weddings in Nov-Dec: PL Capital's Beat report
Sep 18, 2024
Mumbai, Maharashtra [India] September 18, : India will spend Rs 4.25 lakh crore on projected 35 lakh weddings planned between November to mid-December, says a report by PL Capital-Prabhudas Lilladher.
"India is projected to host another 35 lakh weddings between November and mid-December alone, up from 32 lakh weddings during the same period in 2023. This is expected to contribute approximately INR 4.25 lakh crore." the report said
The report titled "Band Baaja Baarat & Markets" says the cut in import duty of gold in the July budget will give an impetus for bigger spending during the festive and wedding season.
"The recent cut in gold import duties from 15% to 6% is anticipated to lead to a notable rise in gold purchases nationwide, especially during the upcoming festive and wedding seasons. Given gold's cultural and religious importance, along with its status as a valuable investment, this reduction is expected to significantly boost demand." says the report
The report quotes a survey of Confederation of All India Traders (CAIT) to add that between January 15 to July 15, India has seen over 42 lakh weddings with an estimated expenditure of Rs 5.5 lakh crore.
The projected another 35 lakh weddings between November and mid-December alone, up from 32 lakh weddings during the same period in 2023, will add an expenditure of approximately Rs 4.25 lakh crore.
The Indian stock market too sees a boost during the festive and wedding seasons, largely because of increased consumer spending. Sectors such as retail, hospitality, jewellery, and automobiles see substantial benefits from this increased demand.
Wedding and festive season in India also sees higher spending on premium goods and services, such as airlines and hotels bookings. This increased demand enhances profit margins of companies, supporting overall economic growth of the nation.
The report adds that government's plan to identify 25 key destinations of India as wedding sites and promote India as a top choice for international weddings will increase forex inflow in the country.
"The initiative will begin by highlighting around 25 key destinations across the country, demonstrating how India can cater to various wedding preferences. Building on the success of the Make in India campaign, this strategy aims to capture approximately USD 12.1 billion (INR 1 lakh crore) that is currently spent on destination weddings overseas."
