What Happens in Diwali? Business And Economy | Pros and Cons | BeYourBoss

What is Diwali

Diwali also spelled as Divali or Deepavali (Dipavali in Sanskrit means “row of lamps”) is a Hindu-originated festival celebrated in India— also known as the “festival of lights”.

What happens in Diwali

Diwali is the biggest Indian festival celebrated for around 5 days. Festivals like Diwali plays a very crucial role in India’s economy.

When it comes to business and economy, The period of Diwali makes a boom in Indian economy.

For Diwali, People splurge on clothing, gifts, food and sweets, Decorations, Gold and many more things. In fact, the four months from September to December contribute a major chunk to the annual sales of consumer durables creating more employment. Every year, e-commerce giants like Flipkart and Amazon clash in on the euphoria with eye-popping discounts of up to 80% on mobile phones, ethnic clothing, Electronics and much more.


Points to look after


Firework business

Firework industry is the most booming industry. Though its lighting makes Diwali as festival of lights, but since 2017 government of India put forth restrictions on use of firecrackers, which slowed down the industry. Now, In 2018 government of India just allowed Citizens to enjoy fireworks only between 8 PM to 10 PM. Such rules are adversely affecting the overall net worth of the industry.

According to a report in Business standard, the Crackers industry in India is worth more than Rs 10,000 crores. However, it is the source of income for about 5-6 Lakh people (direct and indirect). Also, India import hundreds of crore worth Fireworks from China.

According to Tamil Nadu Fireworks and Amorces Manufacturers Association (TNFAMA), crackers industry plays a dominant role with Rs 10,000 crore business and provides employment to thousands of families in Sivakasi of Tamil Nadu.

On Diwali, according to Tamil Nadu Fireworks and Amorces Manufacturers Association, 40% of the Rs 10,000 crore fireworks business was captured by Chinese products, affecting 2.5 lakh Indian artisans adversely.


  • It employees people
  • Money circulation increases
  • One can start seasonal fireworks business which leads to temporary income source


  • Air pollution increases
  • Noise pollution increases
  • Employment increases but the industry too consist of child labor which is though illegal.


Clothing Business

It is the most liked and favourite industry of almost every Indian. According to business standard, clothing industry during Diwali Triples compare to normal season. Alao, Huge discount by e-commerce giants like Amazon and Flipkart make people to buy more.

The economy banks on festivals especially Diwali boost up the GDP numbers. As we enter the official festival season of the year, the conditions are conducive to increased spending, despite skirmishes on the borders. And in the recent sale of Flipkart, it marked Rs 1,400 crore sale on the first of its Billion Days, the highest sales it has recorded in a day.

Last month, India witnessed a face-off between the biggest competitors in the e-commerce sector — Amazon & Flipkart. Flipkart claimed that their sales skyrocketed compared to the previous year during the festival season, while Amazon didn’t comment on its overall sales but stated about a 150% increase in sales in the smartphone category. But it will be fair to say that Flipkart beats Amazon in this recent sale.


  • Creates opportunities for small scale clothing retailer.
  • Cloth manufacturers employees more labor.
  • Helps in Economy


  • Stacking old Clothes to customer.


Food Business

Yummy! everyone likes to eat food specially sweets and when it comes to Diwali sweets are one of the major attraction. In Diwali, Dry fruit consumption Graph Skyrockets. Almost every food varieties sale increases.


  • Food consumption increases so as employment level increases
  • Food varieties like dry fruit consumption increases.


  • Adulterated food


Decor Business

In Diwali every corner of house is cleaned to make it look new and charming. Decor industry too boomed in Diwali, people buy lightings, decor things To make houses look good.


  • Small scale business demand increases, so as employment increases.


  • As lighting increases the harmful gases in lighting too increases which leads to air-pollution


Travel Business

Now you will be wondering how travel industry get boomed since we Indians get Diwali holidays, we plan holidays to travel. So as travelling increases the flow of money in travel industry increases. People get employed now as compared to other countries they just get summer vacations or anything else but we get summer vacations as well as Diwali holidays and many more festival holidays which we use for enjoying by travelling and this boom our travel industry.


  • Employment to travel guides increases.


**We didn’t find any cons**


Diwali marks the peak of India’s longest festival season and making India’s economic growth.

Exports of diwali goods to Nations inhabiting Indians, Firecracker industry in India, Pottery industry, oil and ghee industry, sweet shops, all get a boom. Electricity consumption is not an economical problem. Moreover electricity is mostly consumed for domestic purposes and these consumptions are much less as compared to Motor power consumption in commercial uses.

Only problem is with gold & jewellery purchase linked with diwali. Gold means import which is somewhat harmful. But in long term that is also beneficial for economy. So we should take Diwali as very economy promoting festival.

None might compete with the grandeur of Diwali. Diwali provides great boost to the businesses in the economy. This opportunity needs to be fully exploited by our India Manufacturers especially the small-scale producers. The scale of Indian manufacturing needs to increase and we should promote to celebrate swadeshi festivals with swadeshi items.