Dhanteras significantly boosts India's economy through a massive surge in consumer spending across multiple sectors. Anchored by the auspicious tradition of buying new items for prosperity, the festival drives high demand, stimulates retail trade, and creates a positive market sentiment.
Key economic impacts of Dhanteras
Stimulates retail trade
Dhanteras is one of the most important shopping days of the year, marking the beginning of the Diwali festival. The Confederation of All India Traders (CAIT) has estimated total festive trade can surpass ₹1 lakh crore.
Jewellery: The bullion market is the primary beneficiary, with consumers buying gold and silver items like coins, bars, and jewellery. This demand can account for a significant portion of annual revenue for many jewellers. In 2025, gold and silver sales alone were expected to exceed ₹60,000 crore.
Electronics and appliances: A culture of upgrading household items during the festival drives strong sales of consumer electronics, gadgets, and kitchen appliances.
Automobile industry: Dhanteras is a popular time for purchasing new vehicles, including cars and bikes, with many manufacturers offering special promotions to attract buyers.
Boosts small and medium enterprises (SMEs)
The festive surge in demand extends beyond large retailers to support smaller businesses and local artisans.
Increased demand for local products: Small businesses and artisans who create traditional products like clay lamps (diyas), idols, and handicrafts see a significant increase in orders.
Supports local artisans: This helps sustain the livelihoods of craftspeople and manufacturers, particularly through initiatives that promote indigenous products.
Influences market dynamics
The huge volume of sales on Dhanteras can set market trends and influence overall economic indicators.
Gold market: As a major importer of gold, India's festive demand can impact international bullion markets and the country's import-export dynamics. When gold prices are high, consumers may buy smaller quantities or switch to digital gold, but the total value of sales remains robust.
Consumer sentiment: The high levels of spending reflect positive consumer confidence in the economy. Economists often monitor Dhanteras sales as a barometer of household sentiment.
Modern investment trends: In addition to physical purchases, many people make new investments in financial products like gold exchange-traded funds (ETFs), mutual funds, and stocks on Dhanteras, seeing it as an auspicious time to grow wealth.
Generates employment
To meet the increased demand, the festival season creates short-term employment opportunities across various sectors, including retail, logistics, and manufacturing.
Factors influencing the festival's economic impact
The overall economic effect can vary depending on several factors:
Gold prices: While high gold prices don't deter all buyers due to the cultural significance, they can shift purchasing behavior. Some consumers may opt for lightweight jewellery or gold investment products rather than heavy ornaments.
Incentives: Reductions in GST rates and marketing campaigns that promote local products can boost festive trade and benefit local businesses.
Global factors: Geopolitical tensions and fluctuations in the global economy can drive up demand for gold as a "safe-haven" asset, further influencing purchasing behavior.
Gold has offered positive returns over the last four Dhanteras in a row, with the last fall of 5% witnessed in 2020-21. This year, Dhanteras falls on Saturday, October 18. And analysts anticipate another year of winnings despite gold's record rally to new highs.
Consumer spending during Diwali has a substantial economic impact. Diwali often leads to the highest levels of consumer spending, driven by cultural significance and aggressive marketing strategies. The impact on the retail sector is profound, with many businesses reporting significant revenue increases.
On the day of Dhanteras, Hindus also offer prayers to Goddess Lakshmi, who is the goddess of wealth and good fortune. Dhanteras marks the start of the Diwali festival and is considered the most auspicious day for new purchases, especially Gold on Dhanteras, silver or new …
Diwali, along with Dhanteras - a smaller festival that falls on Saturday this year - are believed to be auspicious occasions to buy precious metal, with hundreds of thousands of Indians flocking the markets to buy gold and silver coins, bars and jewellery, which they believe bring wealth and luck.
Gold rates increase due to a combination of factors including geopolitical uncertainty and safe-haven demand, inflation concerns, expectations of lower interest rates, and a weakening U.S. dollar. Other contributing factors include increased central bank buying, fluctuations in the global supply and demand balance, and steady demand from the jewelry and technology sectors. Macroeconomic and financial factors Geopolitical tensions and uncertainty: During times of political instability or conflict, gold is seen as a safe-haven asset, leading to increased demand and higher prices as investors seek to protect their wealth. Inflation and currency devaluation: Gold is often used as a hedge against inflation. When the value of fiat currencies is expected to decrease due to rising inflation, demand for gold rises, pushing up its price. Lower interest rates: Gold prices tend to rise when interest rates are low. This is because holding gold has a lower opportunity cost compared to other interest-bearing investments like bonds, making gold more attractive to investors. Weakening U.S. dollar: When the U.S. dollar weakens against other currencies, the price of gold (which is priced in U.S. dollars) tends to increase, as it becomes cheaper for buyers holding other currencies to purchase gold. Supply and demand dynamics Central bank purchases: When central banks buy large quantities of gold for their reserves, it increases demand and can drive prices higher. Industrial and jewelry demand: A strong appetite for gold in the jewelry sector or for industrial use, such as in technology and electronics, can boost overall demand and contribute to price increases. Investment demand: Investor sentiment plays a crucial role. Factors like rising inflows into gold-backed Exchange Traded Funds (ETFs) can significantly increase demand and prices. Other contributing factors Mining and production costs: The costs associated with mining and producing gold can also impact its final price. Global economic outlook: A general sense of global economic uncertainty or a fear of recession can cause investors to flock to gold, raising its price.
Commerce world with Professionals and Economy
Dhanteras significantly boosts India's economy through a massive surge in consumer spending across multiple sectors. Anchored by the auspicious tradition of buying new items for prosperity, the festival drives high demand, stimulates retail trade, and creates a positive market sentiment.
Key economic impacts of Dhanteras
Stimulates retail trade
Dhanteras is one of the most important shopping days of the year, marking the beginning of the Diwali festival. The Confederation of All India Traders (CAIT) has estimated total festive trade can surpass ₹1 lakh crore.
Jewellery: The bullion market is the primary beneficiary, with consumers buying gold and silver items like coins, bars, and jewellery. This demand can account for a significant portion of annual revenue for many jewellers. In 2025, gold and silver sales alone were expected to exceed ₹60,000 crore.
Electronics and appliances: A culture of upgrading household items during the festival drives strong sales of consumer electronics, gadgets, and kitchen appliances.
Automobile industry: Dhanteras is a popular time for purchasing new vehicles, including cars and bikes, with many manufacturers offering special promotions to attract buyers.
Boosts small and medium enterprises (SMEs)
The festive surge in demand extends beyond large retailers to support smaller businesses and local artisans.
Increased demand for local products: Small businesses and artisans who create traditional products like clay lamps (diyas), idols, and handicrafts see a significant increase in orders.
Supports local artisans: This helps sustain the livelihoods of craftspeople and manufacturers, particularly through initiatives that promote indigenous products.
Influences market dynamics
The huge volume of sales on Dhanteras can set market trends and influence overall economic indicators.
Gold market: As a major importer of gold, India's festive demand can impact international bullion markets and the country's import-export dynamics. When gold prices are high, consumers may buy smaller quantities or switch to digital gold, but the total value of sales remains robust.
Consumer sentiment: The high levels of spending reflect positive consumer confidence in the economy. Economists often monitor Dhanteras sales as a barometer of household sentiment.
Modern investment trends: In addition to physical purchases, many people make new investments in financial products like gold exchange-traded funds (ETFs), mutual funds, and stocks on Dhanteras, seeing it as an auspicious time to grow wealth.
Generates employment
To meet the increased demand, the festival season creates short-term employment opportunities across various sectors, including retail, logistics, and manufacturing.
Factors influencing the festival's economic impact
The overall economic effect can vary depending on several factors:
Gold prices: While high gold prices don't deter all buyers due to the cultural significance, they can shift purchasing behavior. Some consumers may opt for lightweight jewellery or gold investment products rather than heavy ornaments.
Incentives: Reductions in GST rates and marketing campaigns that promote local products can boost festive trade and benefit local businesses.
Global factors: Geopolitical tensions and fluctuations in the global economy can drive up demand for gold as a "safe-haven" asset, further influencing purchasing behavior.
Gold has offered positive returns over the last four Dhanteras in a row, with the last fall of 5% witnessed in 2020-21. This year, Dhanteras falls on Saturday, October 18. And analysts anticipate another year of winnings despite gold's record rally to new highs.
Consumer spending during Diwali has a substantial economic impact. Diwali often leads to the highest levels of consumer spending, driven by cultural significance and aggressive marketing strategies. The impact on the retail sector is profound, with many businesses reporting significant revenue increases.
On the day of Dhanteras, Hindus also offer prayers to Goddess Lakshmi, who is the goddess of wealth and good fortune.
Dhanteras marks the start of the Diwali festival and is considered the most auspicious day for new purchases, especially Gold on Dhanteras, silver or new …
Diwali, along with Dhanteras - a smaller festival that falls on Saturday this year - are believed to be auspicious occasions to buy precious metal, with hundreds of thousands of Indians flocking the markets to buy gold and silver coins, bars and jewellery, which they believe bring wealth and luck.
Gold rates increase due to a combination of factors including geopolitical uncertainty and safe-haven demand, inflation concerns, expectations of lower interest rates, and a weakening U.S. dollar. Other contributing factors include increased central bank buying, fluctuations in the global supply and demand balance, and steady demand from the jewelry and technology sectors.
Macroeconomic and financial factors
Geopolitical tensions and uncertainty: During times of political instability or conflict, gold is seen as a safe-haven asset, leading to increased demand and higher prices as investors seek to protect their wealth.
Inflation and currency devaluation: Gold is often used as a hedge against inflation. When the value of fiat currencies is expected to decrease due to rising inflation, demand for gold rises, pushing up its price.
Lower interest rates: Gold prices tend to rise when interest rates are low. This is because holding gold has a lower opportunity cost compared to other interest-bearing investments like bonds, making gold more attractive to investors.
Weakening U.S. dollar: When the U.S. dollar weakens against other currencies, the price of gold (which is priced in U.S. dollars) tends to increase, as it becomes cheaper for buyers holding other currencies to purchase gold.
Supply and demand dynamics
Central bank purchases: When central banks buy large quantities of gold for their reserves, it increases demand and can drive prices higher.
Industrial and jewelry demand: A strong appetite for gold in the jewelry sector or for industrial use, such as in technology and electronics, can boost overall demand and contribute to price increases.
Investment demand: Investor sentiment plays a crucial role. Factors like rising inflows into gold-backed Exchange Traded Funds (ETFs) can significantly increase demand and prices.
Other contributing factors
Mining and production costs: The costs associated with mining and producing gold can also impact its final price.
Global economic outlook: A general sense of global economic uncertainty or a fear of recession can cause investors to flock to gold, raising its price.
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