Economics of Diwali

Diwali marks a major shopping period in India. In terms of consumer purchases and economic activity, Diwali is the equivalent of Christmas in the west. It is traditionally a time when households purchase new clothing, home refurbishments, gifts, gold and other large purchases. The festival celebrates Lakshmi, the goddess of wealth and prosperity, and investment, spending and purchases are considered auspicious. Diwali is a peak buying season for gold and jewelry in India. It is also a major sweets, candy and fireworks buying season. At retail level, about US$ 800 million (INR 5,000 crores) worth of firecrackers are consumed in India over the Diwali season.