India's Festival Economy
Kites, Sweets and Seasonal Micro-Businesses
How festivals create short-lived business opportunities, from Uttarayan kite makers in Ahmedabad to rakhi sellers and sweet shops, and the economics of seasonal enterprises.
Festivals create seasonal business opportunities.
Examples
- Uttarayan in Gujarat: kite and manja (string) makers, with Ahmedabad hosting a famous kite market.
- Raksha Bandhan: rakhi makers and sellers.
- Diwali: diyas, lanterns and rangoli colours.
- Holi: colours and water guns.
- Sweets: mithai shops see huge demand.
Characteristics
- Short selling windows.
- Informal producers, often families.
- Low capital needs.
Risks
- Unsold stock after the festival.
- Competition from Chinese imports, which fell after anti-China sentiment and import curbs from 2020.
Safety
Glass-coated Chinese manja was banned in 2016 by the National Green Tribunal after injuries to people and birds.
Economic view
Seasonal micro-businesses supplement household income.
The kite family
A family in Ahmedabad makes kites for months before Uttarayan, earning a large share of their annual income in one week of sales.
Thinking festival goods are all factory-made
Many are made by families in informal businesses.
Key takeaways
- Festivals create short-lived business opportunities.
- Kite, rakhi, diya and sweet makers benefit.
- Unsold stock and competition are risks.
- Glass-coated Chinese manja was banned in 2016.
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