Beyond Celebrations: How Indian Festivals Sustain Livelihoods Year-Round

With Diwali just around the corner, a thought struck me: in India, every month feels like a celebration waiting to happen. As a child, these festivals were all about colors, crackers, sweets, new clothes, and the joy of decorating our home. But now, I see how these festivals are about more than just joy—they are the heartbeat of our economy. Diwali alone is expected to generate nearly ₹4.25 lakh crore in turnover in 2024, as estimated by the Confederation of All India Traders (CAIT), underscoring how deeply our culture fuels economic activity across sectors.

Every celebration sparks life into local shops, supports artisans, powers up small businesses, and even adds to the bonuses for employees.

For many, especially those at the bottom of the economic pyramid, these festivals are a time of opportunity. Take Diwali, for example — countless pottery makers earn a living by making diyas, the oil lamps that light up our homes. Nearby shops see their shelves emptied as families buy strings of lights, while sweet shops and snack vendors employ extra hands to meet the festive demand for sweets and delicacies. It’s this flurry of economic activity that allows everyone to take part in the celebrations, providing income for those who may rely on these seasonal boosts.

In India, festivals are not just events—they are lifelines that fuel countless livelihoods, creating a beautiful cycle where our culture not only brings us together but also uplifts and sustains communities across the country.

Economic Energy of Festivals in India: A System of Cultural Commerce

India’s festivals are more than just celebrations; they strongly boost economic activity across nearly every sector. Unlike regular business cycles, festival-driven commerce connects with deep cultural traditions, creating waves of demand that spread from big city markets to rural villages, reaching everyone from large retailers to small family-run stalls.

This unique cycle not only encourages spending but, more importantly, allows people from all socioeconomic backgrounds to share in the prosperity.

Impact on Local Markets
The ripple effect of each festival can be felt strongly in local markets. Artisans, potters, weavers, and craftsmen play a vital role in festival preparations. For instance, potters (Kumhars) create diyas for Diwali, while weavers supply saris and fabrics during celebrations like Navratri and Durga Puja. Many of these craftsmen depend heavily on festivals for their livelihood, as this is when they make a significant portion of their annual income.

Seasonal Employment and Small Business Growth
Festivals also create seasonal employment opportunities, especially in industries like retail, food, and hospitality. Sweet shops and snack makers hire additional workers to manage the increased demand for festival-specific treats, and clothing stores bring in extra hands to handle the festive rush. Local delivery services also experience a surge in orders for gifts, driving short-term employment. To meet this heightened demand, companies across sectors expand their workforce. During the festive season, the retail industry typically sees a 7–10% increase in job creation, while e-commerce and logistics experience growth of 10–12%. This hiring spans both formal and informal sectors, allowing countless individuals to earn and spend, fueling a circular economy that sustains itself through these celebrations.

Boost to Large Retailers and E-commerce Platforms
In recent years, e-commerce giants have connected with these cultural traditions, promoting “Festival Sales” that offer shoppers attractive discounts on electronics, clothing, home decor, and many more. According to a report by Datum Intelligence, Amazon and Flipkart together recorded sales exceeding ₹54,500 crore between September 26 and October 2, marking a 26% increase from the previous year. Notably, mobile phones led the demand at 38% of sales, followed by electronics and consumer durables at 21%. These large-scale online events also benefit small vendors who partner with these platforms, allowing them to tap into this nationwide demand and bring traditional products to consumers across the country.

Rural and Urban Interconnections
Festivals also blur the lines between rural and urban economies. Rural artisans sell their handmade goods in cities, while city-based distributors supply rural areas with goods like paints, lights, and other festival essentials. This interconnected flow of goods and services allows for income distribution across different regions, making festivals a powerful force for balanced economic growth.

An Inclusive Economy through Festivals
Ultimately, India’s festivals create a more inclusive economic system, one that ensures even the smallest vendors and poorest households participate in and benefit from the celebration.

As Diwali day comes to a close, I’m reminded of all the little scenes from the day — families picking out diyas, artisans proudly selling their handmade idols, sweet shops bustling with happy customers. These aren’t just moments of celebration; they’re moments of connection, where our traditions uplift each one of us, especially those who rely on these festivals for their livelihood. Each festival, big or small, is like a thread weaving us together, making sure that everyone, from the street vendor selling flowers to the shopkeeper, shares in the joy.

In India, festivals are more than tradition; they’re lifelines that keep our communities thriving.

— Santan Barnwal