Examining the Economic Impact of India's Wedding Industry

India hosts around 10 million weddings annually. The Indian wedding industry ranks second globally. According to a report published by the Economist, the wedding industry is the fourth-largest industry in India, recording a huge spending of US$ 130 billion per year. Its substantial scale provides employment opportunities for millions. After recovering from the pandemic-induced challenges, the industry recorded growth over the past three years, adopting a digital-driven and innovative approach. The emergence of wed-tech players notably contributed to this evolution. In this blog, we will investigate the dynamics of the Indian wedding industry, analyse its impact on the Indian economy and look at future trends of the Indian wedding industry.

India’s most anticipated wedding season was scheduled between November 23, 2023, and December 15, 2023. A survey conducted by the Confederation of All India Traders (CAIT) revealed that approximately 3.5 million weddings were expected during this 23-day period, generating a substantial economic upturn in the industry. The CAIT Research & Trade Development Society survey projected a flow of around US$ 57.2 billion (Rs. 4,74,000 crore) in wedding-related expenditure and services.

More than 3,50,000 weddings, 10% of the total weddings in India during this timeframe, were anticipated to happen in Delhi. This surge has the potential to generate US$ 12.1 billion (Rs. 1,00,000 crore) for businesses operating in the sector. In the preceding year, 3.2 million weddings occurred in India during the same period, with expenditure reaching approximately US$ 45.2 billion (Rs. 3,75,000 crore).

Source: CAIT

Economics of a wedding

The wedding industry is a conglomerate of various large and small sectors that collectively shape its dynamics. As per a white paper from Wedding Wishlist, catering and venue occupy a 30% share, followed by gifts and decorations at 19% and 14%, respectively.

Source: Wedding Wishlist

CAIT National President BC Bhartia and Secretary General Praveen Khandelwal added that weddings could be divided into five different expenditure categories for 2023:

Beyond the ceremony: How Indian weddings drive economic growth

The Indian wedding industry has a significant economic impact, contributing substantially to the nation's growth directly and indirectly. Here is a glimpse of its economic influence:

Direct Spending

• Market Size: As mentioned above, the 2023 wedding season alone was expected to record an estimated business of US$ 57.2 billion (Rs. 4,74,000 crore) in the main retail sector, encompassing around 38 lakh weddings. This signifies a ~26% rise compared to the previous year.
• Wedding Expenditure: Indian weddings often involve multiple ceremonies and festivities, each requiring specific arrangements. This translates to significant spending on essential aspects such as:
  • Venue bookings
  • Decorations
  • Catering
  • Wedding attire and jewellery
  • Photography and videography
  • Other related services

Employment Generation

• The industry acts as a major job creator, providing livelihood opportunities in various sectors. Estimates suggest that the wedding industry generates almost 10 million jobs in India, employing individuals such as follows:
  • Wedding planners
  • Photographers and videographers
  • Caterers and decorators
  • Makeup artists and hairstylists
  • Musicians and entertainment professionals
  • Artisans and craftspeople involved in creating wedding essentials

Impact on Allied Sectors

• The wedding industry acts as a catalyst for several allied sectors, boosting their growth and contributing to the overall economic development. This includes the following:
  • Hospitality: With a large portion of wedding budgets allocated towards venue rentals and accommodation, the hospitality industry registers a considerable surge in demand during peak wedding seasons. As per media reports, hotel rooms worth ~US$ 603 million (Rs. 5,000 crore) are booked for weddings in a year.
  • Tourism: The trend of destination weddings, where couples choose exotic locations for their celebrations, boosts the tourism sector.
  • Retail: The demand for wedding attire, jewellery, decorations, and other related items fuels the growth of the retail sector. According to media reports, apparel worth US$ 1.2 billion (Rs. 10,000 crores) and gold and jewellery amounting to US$ 7.2 billion (Rs. 60,000 crores) are bought every year for weddings.
  • Technology: Technology has been seamlessly integrated into the wedding space with the arrival of planning apps, immersive 3D virtual venue tours, electronic invitations and matchmaking tools, and the emergence of virtual wedding experiences.
  • Logistics: The logistics industry benefits from weddings due to increased demand for transportation services, including shipping wedding-related goods. This trend also creates opportunities for specialised services in event setup, ensuring timely supply deliveries. The growing popularity of destination weddings further expands logistics prospects for transporting guests and materials to diverse locations.

Overall, the Indian wedding industry's economic impact is undeniable. It not only generates substantial revenue and creates employment opportunities but also plays a crucial role in driving the growth of allied sectors, contributing significantly to the nation's economic well-being.

The government's push for the wedding industry

Wedding tourism campaign

Aligned with Prime Minister Narendra Modi's vision of ‘Developing Tourism in Mission Mode’, the Ministry of Tourism unveiled a comprehensive campaign to position India as a prominent global wedding destination.

 This initiative aims to strategically enhance tourism in India by promoting the country as an attractive venue for weddings on an international scale. Employing a collaborative approach, the campaign has been developed in consultation with industry experts, associations, and experienced wedding planners to shape a narrative highlighting India's appeal as a wedding tourism destination, addressing diverse preferences and showcasing the nation's multi-dimensional offerings. The campaign commences with the profiling of approximately 25 key destinations across the country, illustrating how India aligns with various wedding aspirations. From scenic landscapes to sacred traditions, culinary delights to advanced infrastructure, the campaign captures India's grandeur, inviting couples to choose India as the backdrop for their wedding celebrations. It celebrates the fusion of India's ancient heritage with modern elegance, enticing the global audience to embark on a memorable journey of love and celebration.

Implementing a comprehensive 360-degree approach, the campaign will leverage digital marketing, social media initiatives, strategic partnerships with wedding planners, collaborations with influencers, and various offline and online activations. The objective is to redefine India's perception beyond wealthy weddings, incorporating themes, such as beach, nature, royal or Himalayan weddings, allowing couples to plan their ideal celebration in India's embrace.

This groundbreaking initiative aims to showcase India's beauty and diversity as a premier wedding destination globally. By highlighting captivating locales, vibrant rituals, rich gastronomy and world class infrastructure, the campaign has the potential to attract couples from around the world. It signifies the initial step in the strategic endeavour to establish India as a prominent wedding tourism destination, with additional initiatives planned to engage the domestic market.

Wed in India

Prime Minister Narendra Modi initiated a campaign like 'Make in India,' termed 'Wed in India.' This initiative encourages affluent industrialists to organise at least one destination wedding per year in Uttarakhand, aiming to position the state as a notable wedding destination.

This strategy, inspired by the 'Make in India' campaign, aims to redirect approximately US$ 12.1 billion (Rs. 1,00,000 crore) to the country, funds that are currently spent on destination weddings abroad.

The CAIT praised this visionary initiative as a strategic move to prevent the outflow of currency from India. Over the years, India has cultivated a comprehensive ecosystem within the wedding industry, contributing considerably to the economy through wedding-related goods and services.

CAIT leadership highlighted the benefits of hosting destination weddings in India, including the preservation of Indian values and a substantial boost to the nation's economy and businesses. CAIT National President BC Bhartia and Secretary Praveen Khandelwal noted that India is home to over 2,000 suitable locations for grand destination weddings across approximately 100 major cities in various states, with notable examples being Goa, Mumbai, Jaipur, Udaipur, Chennai, and Delhi.

The 'Wed in India' initiative is designed to retain wealth within India, promote economic growth, and create sizeable employment opportunities.

From rituals to riches: The unstoppable growth of India's $75 billion wedding sector

The Indian wedding sector, historically characterised by its largely unorganised nature due to vendors limited online presence and small-scale operations, has demonstrated considerable resilience and growth potential. As per a KPMG report released in 2016, the market was valued at US$ 44.4 billion (Rs. 3,68,000 crore). The advent of technology is poised to revolutionise wedding planning, with digital services ranging from electronic invitations to dedicated apps for idea sharing and social media playing an increasingly major role in the celebration process.

Traditionally reliant on personal networks, friends, and offline planners, this multi-billion-dollar industry has been fragmented, with no dominant market players and a minimal digital footprint. However, according to a report published by Business Outreach, the industry is recovering, showcasing an impressive annual growth rate of 7-8%, and is projected to reach a market size of US$ 75 billion in the 2023-24 wedding season. This growth is driven by factors such as rising consumer spending power and the expansion of the luxury market segment, alongside a demographic trend that sees a substantial portion of the population entering marriageable age within the next five years.

Endorsed by initiatives like Prime Minister Narendra Modi's appeal for 'Wed in India,' the industry is anticipated to witness over 42 lakh weddings in the season spanning from January 15, 2024, to July 15, 2024, generating an estimated expenditure of US$ 66.4 billion (Rs. 5,50,000 crore). Delhi alone is expected to host over 4 lakh weddings, contributing to the sector's economic impact with an estimated US$ 18.1 billion (Rs. 1,50,000 crore) in business. This period signifies not only recovery from pandemic-led downturns but also underscores the industry's role as a major economic driver. Between these developments, the Indian wedding industry is poised for growth and evolution, establishing itself as a key component of the national economic framework.