Indians allocate double the amount of money for weddings compared to education expenditures: Report
According to a recent report by Jefferies, an investment banking and capital market firm, Indians spend nearly twice as much on weddings compared to their expenditures on education.
The Indian wedding industry is valued at approximately $130 billion (about Rs 10.7 lakh crore), making it the second-largest market after food and groceries. Jefferies’ study, which involved extensive data analysis and visits to key industry hubs, reveals that while the Indian wedding market exceeds that of the US, it falls short of China’s market size.
The report highlights that the average Indian wedding costs around $15,000 (approximately Rs 12.5 lakh), nearly double the amount spent on education from preschool through graduation.
Seen as a significant driver of discretionary spending, the Indian wedding sector wields considerable economic influence across various sectors. On average, Indians allocate five times their per capita GDP of $2,900 (over Rs 2.4 lakh) towards weddings, which surpasses three times the average annual household income of about Rs 4 lakh.
Luxury weddings, ranging from Rs 20 lakh to Rs 30 lakh, represent a substantial segment of the market. These budgets typically cover expenses for multiple functions hosted at upscale venues, luxurious accommodations, extravagant catering, and elaborate decor and entertainment. However, costs related to jewellery, wedding attire, and travel are not included in these estimates.
The wedding industry in India comprises numerous small businesses and independent service providers, each catering to diverse regional traditions. This diversity allows local businesses to customize their offerings to meet specific wedding needs.
Several sectors directly benefit from Indian weddings:
- Jewellery: Bridal purchases account for over half of jewellery sales.
- Apparel: More than 10% of clothing expenditures are allocated to weddings.
- Catering and Events: Catering constitutes 20% of wedding expenses, while event management services make up 15%.
Prime Minister Narendra Modi has encouraged more weddings to be held within India rather than abroad, aiming to stimulate the local economy through increased domestic wedding expenditures.
