Diwali: Festival of Lights, Gold and Shopping

Preparations for Diwali are well underway in India. The multi-day festival and shopping extravaganza is set to see the equivalent of $13 billion spent online this yea. According to a report by the India Brand Equity Foundation, this surge is being fuelled by repo rate cuts, higher disposable incomes, improved rural earnings and pent-up demand. Retailers Flipkart and Amazon are expected to account for nearly two-thirds of festive transactions. According to a survey by YouGov, 54 percent of urban Indians plan to spend more this Diwali, especially on sweets, clothing and accessories.

Gold is a popular item purchased during the festive season as it is considered a favorable way to welcome the blessings of Goddess Lakshmi, a purveyor of wealth and success, with many people buying gold on the day of Dhanteras, the first day of festivities. While demand usually rises during the festive season, the India Bullion and Jewellers Association warns that gold ornament demand may drop up to 27 percent in volume terms compared to the same three-week festive period as last year. This is due to record-high gold prices, driven by safe-haven demand amid geopolitical and tariff uncertainties. Some shoppers are moving away from buying more expensive and ornate jewellery, in exchange for gold coins or bars, which are cheaper.

Last year, a record number of earthenware lamps called diyas were lit at the same time in Ayodhya, Uttar Pradesh at 2,512,585. This year, Ayodhya is set to illuminate the Saryu River ghats with even more of the lamps, aiming for 2.8 million on 58 ghats, with the help of some 30,000 volunteers, according to the Times of India.

In terms of travel, India has seen a spike in interest from holidaymakers around the Diwali festive season in 2025. Data from digital travel platform Agoda, reported by CNBC, shows that domestic holiday searches for the festive week rose by 18 percent year-on-year, while interest from travelers outside the country is up 67 percent. Domestic travel continues to drive the majority of holiday plans. Goa is the top-searched destination, while the cities of Udaipur and Jaipur saw increases in search volume of 49 percent and 46 percent, respectively.

According to CNN, more than one billion people celebrate Diwali around the globe, mainly on the Indian subcontinent. While interpretations on the story behind the celebration vary, the day is marked by lighting decorative lamps called diyas, creating rangoli patterns with colorful powders and gathering with family.