The Economic Impact of Durga Puja on West Bengal: A Vibrant Celebration Driving Growth and Employment

By Susmita Mandal, Sarthak Bose

With only one day left for the commencement of Durga Puja, the excitement is in the air, filling our hearts with anticipation and Puja vibes. Step into the enchanting world of Durga Puja, where joy, celebration, and economic prosperity intertwine in a mesmerizing dance of colors and lights. This captivating topic captures the vibrant and enchanting spirit of Durga Puja, evoking a sense of awe and wonder. Explore how this magnificent festival not only fills our hearts with joy but also uplifts the economy of West Bengal, creating a ripple of hope and prosperity. Delve into the magical realm where traditions, culture, and economic growth converge, painting a picture of resilience and community spirit. Get ready to immerse yourself in the grandeur of Durga Puja and discover the fascinating interplay between tradition, celebration, and economic vibrancy.

Understanding the Economic Impact

To understand how Durga Puja catalyzes economic growth, we need to view this festival from an economist’s perspective. According to Economist Debayan Sarkar, the contribution of Durga Puja in West Bengal’s economy is at par, if not bigger than the contribution of Rio de Janeiro carnival to the Brazilian City’s economy and the contribution of the cherry blossom festival in Japan.

A study conducted by the British Council reveals that the total estimated economic value of creative industries associated with Durga Puja amounts to INR 32,377 Crores (for the fiscal year 2019–20), which is roughly 2.6% of West Bengal’s GDP. Furthermore, this festival of joy bestows economic prosperity upon numerous households, creating employment opportunities for nearly 3 lakh individuals. This phenomenon can be attributed to the significant surge in consumption demand during Durga Puja, which creates a multiplier effect on the state’s gross domestic product. This concept can be elucidated effectively through the following diagram and example.

Starting from the prior two months of the actual festival to the day of Dashami (the last day of Durga Puja), foreign individuals and Indian residents living abroad visit West Bengal to enjoy the festive season and purchase goods and services. This initial direct expenditure stimulates economic activity and creates additional business turnover, employment, household income and government revenue. If we simply assume that individuals spend their money at four different types of establishments (restaurant, retail, hotel and others), then each of these establishments could disburse the money in five possible ways shown in the diagram. Retail is used to illustrate the process, but the pattern would be the same for each establishment.

The money which has not leaked out from the state’s economy, constitute income for local and non-local households and savings. The local economic agents (Industries, households and government in West Bengal) then will continue to spend this money in the successive rounds following the same pattern as before. These subsequent rounds of economic activity is the indirect impact of the initial expenditure. The direct and indirect effects all contribute to the total impact of an initial injection of money by the visitors. In this way, the initial expenditure continues to increase the level of state GDP through successive rounds of income and expenditure, which we call the multiplier process.

The Cultural and Creative Economy Surrounding Durga Puja

To gain a deeper understanding, let’s explore how this festival influences various sectors of the economy, particularly the creative economy.

The creative economy surrounding Durga Puja in India is a vibrant and multifaceted ecosystem that encompasses a wide range of artistic expressions, cultural innovations, and economic activities. These sectors provide a unique lens through which we can explore the festival’s profound influence on both culture and commerce.

1. Shopping Extravaganza

Durga Puja is a shopaholic’s paradise! The bustling markets and vibrant stalls offer a wide array of traditional clothing, accessories, and puja essentials. This surge in shopping not only brings joy to the buyers but also boosts the local economy. The retail sector contributes INR 27,364 crore (FY 2019–20) to the overall creative economy. Retail store owners report a 100% boost in sales due to the special offers and bonuses offered during Puja.

A significant number of blue-collar workers and state government employees receive Durga Puja bonuses and strategically plan their purchases during this festive season. This period witnesses the highest boost in sales in the apparel, jewelry, and electronics sectors, with retailers introducing festive offers to attract consumers. Numerous small retailers in markets such as Gariahat and Hatibagan depend on Puja sales to boost their annual income significantly.

2. Artisans and Craftsmen

The Puja season provides a platform for skilled artisans and craftsmen to showcase their talent. From intricately designed idols to stunning pandal decorations, which are temporary structures created to house the beautifully crafted idols of Goddess Durga.

Idol-making is a traditional profession passed down through generations among the idol-making community. The present population of idol-makers includes not only the traditional groups but also artists who have graduated from Art College with formal training. The idol-making market in the Kumartuli area alone is valued at approximately INR 35 Crores, while the entire Kolkata region accounts for a total of INR 120 Crores. These idols also play a significant role in exports, with around 70–80 idols being shipped to countries such as the USA, UK, New Zealand, Sri Lanka, Bangladesh, and more each year. The average price for idols falls within the range of INR 1.5 to 2.3 lakhs, but idols crafted by renowned idol makers can command prices as high as INR 4 lakhs.

Pandal-making activities during Durga Puja contribute a substantial INR 860 crore to West Bengal’s economy. Of this, Pujas registered with authorities account for INR 700 Crores, while unregistered Pujas contribute INR 160 Crores. In the segment of registered Pujas, Kolkata constitutes 15% of the total pandal expenditure, with the remaining 85% attributed to the rest of West Bengal.

“Dhaki”s play a crucial role in providing employment opportunities during festivals and cultural events. Their rhythmic beats and performances contribute to the festive atmosphere and create job opportunities for themselves.

3. Tourism Boom

Durga Puja brings a wave of excitement and joy, attracting tourists from far and wide. The streets are adorned with colorful decorations, and the air is filled with the aroma of delicious food and the sound of dhakis’ rhythmic beats.The stunning pandals, artistic idols, and vibrant cultural events create a unique experience that draws visitors year after year. This influx of tourists boosts the hospitality industry, including hotels, restaurants, and transportation services, generating revenue and employment opportunities. According to the Airports Authority of India, Kolkata experienced a remarkable 13.3% annual growth in foreign tourist arrivals during April-December 2019, marking the highest growth rate among all metropolitan cities in India. Additionally, they reported that passenger arrivals and departures at Kolkata airport during each of the 5 days of the festival reached approximately 70,000–72,000 passengers. This figure is nearly 10,000 passengers more than the usual daily count.

4. Transportation services

The streets of Kolkata come alive during Durga Puja, with beautifully decorated pandals at every corner. This calls for an increased demand for transportation services, including taxis, buses, and rickshaws. Drivers and transportation workers play a crucial role in ensuring that people can travel around the city to experience the Puja festivities. A spike in train traffic of 10.67% compared to non-festive days has been seen during the 5 days of Durga Puja.The number of passengers arriving in Kolkata during 5 Durga Puja days through buses is close to 47,093, representing a significant surge of 25,673 passengers during this festive period.

5. The Culinary Delights

Durga Puja is a gastronomic extravaganza that tantalizes taste buds and creates an aromatic symphony that entices the senses and leaves you craving for more. Food stalls and street vendors offer a plethora of mouth watering delicacies, from traditional Bengali sweets like rosogollas and sandesh to savory treats like phuchka (pani puri) and kathi rolls. This culinary extravaganza not only satisfies cravings but also supports local food vendors and stimulates the food industry.

As per industry stakeholders and key F&B operators, F&B sales during the month of Durga Puja spike approximately 30% as compared with non-festive months. The spike is particularly prevalent during the 2 weeks leading into Dashami (the last day of the puja), rising as much as 65–70% over the previous two weeks.

This is very important for the F&B industry in West Bengal which holds a 6.3% share of India’s total F&B Market. Consequently, West Bengal’s annual F&B spend was calculated at INR 26,705.7 Crores (2019-’20). The annual figure was assumed to be distributed uniformly across all months of the year except for the Durga Puja month, in which the above stakeholders stated that sales rose by 30%.

6. The Cultural Showcase

Durga Puja acts as a cultural bridge, attracting people from different backgrounds and communities. It is a celebration of art, music, and dance. Cultural events, including traditional performances, music concerts, and dance recitals, take center stage during the festival. These events not only entertain the masses but also provide a platform for local artists, musicians, and performers to showcase their talent, contributing to the cultural and creative industries fostering their growth and recognition.

The “Pujabarshiki” or periodicals — the editions of Bengali magazines timed with Durga Puja also known as the annual Durga Puja special magazine, plays a significant role in the cultural and literary landscape of West Bengal. It showcases a diverse range of articles, stories, poems, and artwork from renowned authors and artists. It provides a platform for creative expression and fosters a sense of community among readers and contributors. They are a major source of income for all publishers during Durga Puja. Five major publishing groups release 7–8 periodicals/magazines (such as Desh, Anandamela, Anandalok, Kishore Bharati, Sananda, Suktara, Nabakallol, etc.). These groups collectively hold a substantial market share, accounting for approximately 80–85% of the total market. Notably, the ‘Pujabarshiki Anandamela’ alone generates revenue of INR 4.3 Crores.

7. Philanthropic Activities and Social Impact

During Durga Puja, the Puja committees in Kolkata and other parts of West Bengal unite to make a positive impact on their communities. Many Puja committees organize a wide range of philanthropic activities that have a positive social impact. One of the notable initiatives is the blood donation drives. These drives are incredibly important as they help save lives and provide a vital resource for those in need. In fact, according to data from the West Bengal State Government, around 10,000 blood donation camps are organized during Durga Puja. As a result, approximately 1 lakh units of blood are collected.

In addition to the blood donation drives, the Puja committees also engage in other charitable activities. They distribute food and clothing to the needy, ensuring that everyone has a warm meal and clothing during the festive season. These acts of kindness address societal needs and foster a sense of community and compassion. The Puja committees play a significant role in bringing people together and creating a positive impact on society.

Conclusion

As Durga Puja gains more and more global recognition, its contribution to the economy of West Bengal continues to increase. In 2013, the Associated Chambers of Commerce and Industry in India (Assocham) released a report titled “West Bengal Cashing in on Durga Puja Celebrations.” The report estimated the creative industry surrounding Durga Puja to be Rs. 25,000 crores in 2013, with an annual CAGR of 35%. If this growth rate persisted into 2022, even after adjusting for economic downturns during the Covid-19 pandemic, activities related to Durga Puja would contribute at least 5% to West Bengal’s GDP.

Beyond the economic aspect, Durga Puja is deeply rooted in the cultural fabric of West Bengal. The essence of Puja lies in the celebration of the goddess Durga’s triumph over evil, symbolizing the victory of good over bad. The festival brings people together, fostering a sense of unity, joy, and togetherness. The streets are adorned with artistic decorations, vibrant lights, and the beats of dhak fills the air, creating a festive and energetic atmosphere. It stimulates tourism, generates employment, supports local businesses, and promotes the cultural and creative industries. Beyond its economic significance, Puja also fosters social cohesion and philanthropy. It’s truly a celebration that brings joy, prosperity, and togetherness to the vibrant state of West Bengal. Let’s celebrate the Puja vibes and the economic vibrance hand in hand!