Festivals, Kumbh Mela And Economy

Festivals play an important role in the economy of the countries like Nepal and India. Religious and cultural festivities such as Christmas, Id and Muharram have meaningful contributions in the economy of the Christian and Muslim countries. In Nepal, festivals such as Teej, Dashain and Tihar are said to be major driver of economic activities through increased consumption and consumer spending binge. Restaurants, party palaces and banquet halls do brisk businesses during Haritalika Teej as women groups have started increasingly to host Dar Khane lavish feast at hotels and banquet halls. Similarly, Dashain and Tihar feature larger shopping spree which give a boost to the economic activities with positive impact on the virtuous cycles of economy.     

Moreover, in Nepali cultural milieu temples have been the centres of the community activities where people gather to exchange news and ideas, share their stories and difficulties, seek each other's advice, and plan their social lives.  Devout people associated with music, devotional prayers (Bhajans) worship and rituals make temples a hub of activity for the community people. Likewise, our neighbouring country India has a rich cultural and religious heritage. According to a report, there are over 10 million temples in the country, and they are spread across rural and urban areas. The same report states that there are more than 10 religious places in every village, with festivals or fairs organised at least once a year at all these places in India. 

Spiritual growth

Festivals have been a central feature for India's businesses. People must spend even when they are tight-fisted as festivals are considered auspicious for purchase of goods -- from utensils to home appliances to gold to cars and bikes to houses. In India, Kumbha Mela is being observed. Kumbha Mela is the world's biggest gathering of humans.  It has started last week at Prayagraj (Allahabad) on Paush Purnima with the bathing ritual. While the 45-day religious event is considered a rare occasion for spiritual growth, it's also known for its pomp and show. Thousands of religious gurus and saints as well as hundreds of millions of devotees congregate here for a dip in the sacred waters. The world's biggest gathering of humans is also a much-awaited event for India's consumer businesses. In fact, of the festival cycle, Kumbha plays an important role in driving Indian economy.

Average Indian people have grown richer with their disposable incomes rising with each passing year. India's consumption spending has strengthened and no longer remain significantly dependent on festival seasons.  Indian consumer is slowly rising above buying basic necessities. While festivals sales too will boom with rising purchasing power, the increasing size of middle class, which has money to spare for discretionary purchases, will translate into higher year-round consumption, says a report published in The Times of India.

Today, Indians are not as worried about food, clothes and shelter, the very basic needs for survival, as they used to be a decade ago. A radical shift in the way Indians consume has taken place in the past decade. According to the National Account Statistics 2024 data, consumers have shifted towards services and discretionary spending, away from basics such as food, clothing and housing. The report says that the  share of essentials has declined in private final consumption expenditure (PFCE) for the last decade while that on health and education,  among others,  has gone up. Health saw 8.2 per cent growth and education 7.5 per cent growth. Housing expenses dropped from 16.4 per cent to 13 per cent and clothing from 6.1per cent to 4.8 per cent. 

Transport and communication also saw substantial growth at 8.2 per cent and 7.8 cent respectively. Food and beverages remain the largest spending category, but their share decreased from 30.5 per cent to 28.2 per cent. Within this category, packaged food experienced the highest growth at 10.4 per cent, followed by meat (8.7 per cent), fish and seafood (8.3 per cent), and eggs (7.1 per cent). These numbers suggest that the Indian middle class is growing. This is demonstrably clear from the ads displayed in the mega event.  Several business and industrial firms like Coca-Cola, Adani Group, Hindustan Unilever, Dabur, Bisleri, Reliance Consumer Products et al are among those that have bought branding rights for the Kumbha mela event. Business firms are tapping into consumers as well as leveraging the opportunity to offer first-time samplings to international visitors.

Jobs

Startups and tech platforms in segments such as spiritual apps, in addition to travel and hospitality, too, have prepared the ground to capitalise on the Kumbha Mela. Festivals like Kumbha Mela create jobs in India. Over 1.2 million freelance roles were posted during the 2024 festive season, which is 23 per cent more than last year, driven by the rise of e-commerce, tech advancements, and the transition to flexible, on-demand roles post-pandemic, says a report. The report was based on an analysis of data collected from business platform, covering key sectors such as logistics, retail, e-commerce, and customer support,.

Festivals such as Kumbha Mela also helps local small businesses to grow. Bolstered by e-commerce, small direct-to-consumer brands thrive during festivals.  E-consumer brands outpaced marketplaces during the 2024 festive sales period, recording a 64 per cent growth last year, compared to the 26 per cent growth seen on marketplaces, In addition to festival sales, the temples too are proving to be drivers of business in their regions. The newly constructed Ram temple in Ayodhya and the infrastructure upgrade and renovation of Kashi Vishwanath complex in Varanasi have given a big boost to the regional economy as well as fuelling religious travel.

(The author is presently associated with Policy Research Institute (PRI) as a senior research fellow.  rijalmukti@gmail.com)