New Delhi – Dhanteras 2024 , marking the auspicious start of Diwali, continues to be a focal point of economic activity across India. This year, it is estimated that the festival spurred a remarkable ₹60,000 crore (approximately $60 billion) in trade, a direct boost driven by increased consumer spending, gold purchases, and the flourishing “Vocal for Local” movement. In light of this movement, China’s import-dependent market is estimated to have experienced a blow worth ₹1.25 lakh crore (around $12.5 billion), as Indian consumers prioritize locally produced goods.
The Confederation of All India Traders (CAIT), led by its national secretary general and Member of Parliament, Praveen Khandelwal, reported an unprecedented rise in sales of Indian-made goods. Notable increases were seen in gold and silver purchases, traditional household items, and culturally significant products, signaling a renewed consumer focus on quality and sustainability. As the markets brim with enthusiasm, Dhanteras has emerged as an exemplary day reflecting both economic strength and cultural pride.
The Rise of Vocal for Local: Impact on Dhanteras Market Trends
Dhanteras has always held a deep-seated cultural importance in Indian households, being a day dedicated to purchasing precious metals, deities’ idols, utensils, and items considered auspicious. In recent years, Prime Minister Narendra Modi’s “Vocal for Local” initiative has catalyzed a change in consumer mindset. Consumers are opting for Indian-made goods, thereby supporting local artisans, potters, and craftsmen. This shift has drastically reduced the demand for Chinese-made items that previously held a substantial share in Diwali-related sales.
Khandelwal expressed confidence that this shift toward Indian-made goods will extend well beyond Dhanteras, benefiting numerous small and medium-sized enterprises (SMEs) throughout the festive season and into the future.
Increased Demand for Gold and Silver: Highlights from the Jewelry Market
This Dhanteras witnessed a significant surge in gold and silver purchases across India. The All India Jewelers and Goldsmith Federation reported sales of nearly 25 tons of gold, amounting to an estimated ₹20,000 crore ($2 billion), while approximately 250 tons of silver were sold for a total of ₹2,500 crore ($250 million). The increased demand for these metals despite high prices reflects the deeply ingrained tradition and the robust economic sentiment surrounding the festival.
Gold prices in the country currently stand at over ₹80,000 per 10 grams, while silver has surged to around ₹1 lakh per kilogram, significantly higher than last year’s prices. Many consumers believe purchasing gold on Dhanteras brings prosperity, contributing to the surge despite the high price tag.
Cultural Significance of Dhanteras: Why New Purchases are Integral
Dhanteras, celebrated two days before Diwali, holds profound cultural and religious significance. It is widely believed that buying new items, especially precious metals and new household goods, brings prosperity and invites good fortune. On this day, devotees perform puja of Lord Dhanvantari, the God of Health, Mahalakshmi, the Goddess of Wealth, and Kubera, the God of Riches. This ritual further enhances the value attached to making auspicious purchases.
Many Indian families embrace the custom of purchasing household items such as utensils, cookware, brooms, and clothing. This practice stems from ancient traditions symbolizing renewal, abundance, and blessings for the year ahead.
The Economic Ripple Effect of Dhanteras
The economic impact of Dhanteras extends well beyond the jewelry sector. Retail sectors, including electronics, textiles, kitchenware, automobiles, and home appliances, saw significant growth in sales volumes. During this festival, consumers often buy high-value items such as vehicles, refrigerators, washing machines, televisions, and smartphones. The surge in sales benefits multiple industries, as manufacturers and retailers prepare to meet demand, offering special discounts and promotions.
The Vocal for Local movement further fuels this economic impact by boosting Indian-made products in these categories, reducing the need for imported goods and enriching local manufacturers.
Vocal for Local Movement: A Push for Sustainable Economic Growth
Since its inception, the Vocal for Local initiative has encouraged Indians to support homegrown products, which has had substantial effects during the Diwali season. The Confederation of All India Traders reported that most products sold this year were manufactured in India, underscoring the success of this movement. The move away from imported Chinese goods for festive items like diyas, idols, decorations, and lighting has redirected profits to Indian artisans and small businesses, supporting local economies nationwide.
By championing Indian products, consumers are helping reduce dependency on imported items, uplifting domestic industries, and securing livelihoods for countless artisans and craftspersons who produce traditional goods.
Supporting Artisans and Traditional Crafts: Revitalizing Diwali Markets
With CAIT’s emphasis on boosting local markets, Indian artisans and traditional craftsmen have benefited immensely. Many traders across major states like Delhi, Maharashtra, and Uttar Pradesh collaborated with local artisans to showcase handcrafted Diwali decorations, idols, and clay lamps. These items, crafted by Indian potters and artisans, saw a substantial increase in demand, as consumers sought unique, traditional items over mass-produced imports.
This initiative has not only preserved the traditional aspects of Diwali celebrations but has also empowered communities that rely on seasonal sales to sustain their livelihoods.
Key Trends and Highlights from This Year’s Dhanteras Festivities
- Increased Sales in Gold and Silver: Consumers purchased more precious metals than anticipated, affirming the cultural importance of these items during Dhanteras.
- Boost in Electronics and Home Appliances: Electronics witnessed high sales volumes as consumers took advantage of festive discounts.
- Shift Towards Local and Sustainable Products: The Vocal for Local movement continues to gain traction, with Indian consumers favoring locally produced items over imported goods.
- Increased Artisan Participation: Local craftsmen and artisans saw a rise in sales due to consumer preference for unique, handcrafted items over imported festival merchandise.
- Support for Indian SMEs: With greater support for Indian goods, small and medium-sized enterprises have benefited from the Vocal for Local movement, adding substantial growth to India’s economy.
The Financial Impact of Buying Local: How China’s Market Has Been Affected
The focus on locally-made products has not only enriched the Indian market but has also affected importers of Chinese goods who previously capitalized on Indian festivals. According to CAIT, the estimated ₹1.25 lakh crore setback for Chinese manufacturers is indicative of India’s economic shift. In prior years, imported festival decorations, diyas, LED lights, and gift items flooded the Indian market. However, this Diwali season, local businesses have filled the gap, driving down demand for imported goods and fostering growth for Indian manufacturers.
