4.25 lakh crore expenditure expected to be generated from 35 lakh weddings from November to mid December 2024: PL Capital’s Beat report
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PL Capital – Prabhudas Lilladher, one of the most trusted financial services organisations in India, in its latest beat report titled BAND, BAAJA, BAARAAT & MARKETS cited that 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.
The Indian stock market frequently sees a boost during the festive and wedding seasons, largely driven by heightened consumer spending. Sectors such as retail, hospitality, jewellery, and automobiles see substantial benefits from this increased demand. Contributing factors include economic stability, low inflation, supportive government policies, and evolving consumer preferences. While the impact may differ across sectors, the overall effect on the Indian economy is positive. Higher spending on premium goods and services, such as airlines and hotels, boosts revenue. This increased demand enhances profit margins and drives stock prices higher, supporting overall economic growth.
India conducts approximately 10 million weddings each year, making its wedding industry the second largest in the world. A report by The Economist highlights that this sector is the fourth largest industry in India, with the annual spending reaching $130 billion and creating millions of jobs. In 2024, from January 15 to July 15, the industry has already seen more than 4.2 million weddings, resulting in an estimated expenditure of $66.4 billion (INR 5.5 lakh crore), according to a survey by the Confederation of All India Traders (CAIT).
The Indian Government plans to enhance tourism by promoting India as a top choice for international weddings. 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 $12.1 billion (INR 1 lakh crore) that is currently spent on destination weddings overseas.
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