One major event that caught almost the whole of India’s attention was Anant Ambani’s wedding with Radhika Merchant. A month-long celebration from pre-wedding party to actual marriage in July continues to create buzz in social media, as celebrities across social spectrum — politicians, film and sports and business tycoons both domestic and international — graced the occasion. Rough estimates suggested that the billionaire businessman may have spent upwards of ₹5,000 crore on the wedding.
When it comes to weddings, even middle-class and upper middle-class families are no less than Ambanis, as they stretch their budgets. According to global investment advisor Jefferies, the current average expenditure per wedding in India is around $14,500, which is around five times India’s per capita GDP of $2,900 and more than three times the average annual household income. India’s wedding spending-to-GDP ratio is significantly higher than that of other countries.
A recent report from PL Capital (Prabhudas Lilladher) indicated ₹4.25 lakh crore expected to be spent on 35 lakh weddings from November to mid-December 2024.
Booming market
India conducts approximately 10 million weddings each year, making its wedding industry the second largest in the world. Quoting The Economist, the brokerage said this sector is the fourth largest industry in India, with the annual spending reaching $130 billion and creating millions of jobs.
In 2024, from January 15 to July 15, the industry has already seen more than 4.2 million weddings, resulting in an estimated expenditure of $66.4 billion (₹5.5 lakh crore), according to a survey by the Confederation of All India Traders (CAIT).
Going forward, the wedding industry is set to grow on the back of the appetite of India’s middle-class and upper middle-class to showcase their once-in-a-lifetime-event. GenZ is not afraid to spend for the special occasions, whether it is by way of pre-wedding photo shoots, exotic locations, variety of foods, etc.
Capitalising on this sentiment, last year, Prime Minister Modi had called for “Wed In India” to boost domestic economy.
Sectors that may gain
Prabhudas Lilladher said the Indian stock market often experiences a surge during the festive and wedding seasons, primarily driven by increased consumer spending. Sectors such as retail, hospitality, jewellery and automobiles benefit significantly from this robust demand, it said.
However, It may be difficult for individuals to identify stocks that have good valuation, given the diversity of sectors from hotels to jewellers; travels to foods and beverages, etc that benefit from large events. Another big problem is the industry is highly unorganised — wedding cards to cooks; second tier hotels to photography, etc.
Besides, each and every sector whether hotels, jewellery, travels, hospitality, food & beverages, has a host of listed companies and it would be difficult for common investors to select from them. The time may, therefore, be ripe to have an index and passive funds tracking the wedding theme. Exchanges and fund managers will help investors who wish to bet on matchmaking.