Indian weddings are yards ahead of any other country in terms of their display of opulence and grandeur. With multi-day celebrations full of colorful rituals, scrumptious food, and intricate decorations. How much money all this pomp and show costs is rarely taken into account. Contrary to the general belief, India does not lead the list when it comes to spending on weddings across the world. China holds the title for the world’s largest wedding industry, at approximately $170 billion, outpacing India’s $130 billion industry, according to a recent Jefferies report. At the same time, however, the Wedding Industry is an enormous economic force in India. The spends at these events impact family budgets and market trends more than is desirable.
The Big Fat Indian Wedding Spends ?
The cost of an average Indian wedding is about ₹12.5 lakh, which is very much in strong contrast to the actual expense of raising and educating a child until the completion of 18 years of schooling. To put that into perspective:
₹12.5 lakh is five times India’s per capita GDP of more than ₹2.4 lakh. It crosses more than three times the average annual household income, which comes to approximately ₹4 lakh. An Indian could spend as much as 20% of his lifetime wealth on a wedding. And now the question is how do average households afford weddings that could run into multiple times their annual incomes?
The Toll of Wedding Bells on Pockets
Indian weddings could be broadly classified, on the basis of the costs Incurred, as:
Court Marriages: These are the cheapest, in the range of ₹250 – ₹ 25,000.
Middle-Class Weddings: These range from an expense of ₹2 lakh to ₹25 lakh. Destination Weddings: These form the most high-end ones, whose cost is estimated between ₹10 lakh and more than ₹1 crore. A Goa wedding will cost anywhere between ₹1 crore–₹5 crore, while a wedding in Jaipur may cost ₹1.5 crore to ₹2 crore.
These costs are rising, and India’s wedding industry is growing yearly by 25-30%, according to KPMG. Another growing trend is the concept of destination weddings. While it stood at 18% in 2022, in 2023, this figure increased to 21%, a survey done by WedMeGood said after speaking to more than 2,400 urban couples.
Mid-level weddings, accounting for 1% of the total, contribute 51% to the expenditure on Indian weddings, while 63% are in this category and cost between ₹10 lakh and ₹25 lakh.
Where Is This Wedding Money Coming From?
The new trend that young couples are coming up for is having intimate weddings with a maximum number of guests reaching 100. Unlike the traditional large gathering of more than 250 people. A recent survey conducted across 24 Tier 1 and Tier 2 cities among nearly 2,100 middle-class respondents aged 21-35 years by IndiaLends shows changing trends in wedding financing. This change in behavior can be linked partly to the increasing trend of self-funding of weddings by couples rather than dipping into the savings of their parents.
This changing mindset has spurred the growth of wedding loans and other financing options. A survey conducted found that:
- 54% will prefer mid-size loans in the range of ₹1 lakh – ₹5 lakh.
- 40% of young adults are ready to spend up to ₹10 lakh for wedding-related expenses.
- 35% were comfortable with spending from ₹5 lakh to ₹10 lakh.
- For wedding loans, 57% of the respondents prefer digital lending platforms over banks.
It is a demand that banks and other financial institutions are responding to. Marrying now and paying later is the latest rage in the personal loan market, with wedding loans coming at interest rates of 10% – 36% per annum depending on the borrower’s CIBIL score. Demand for wedding loans has seen a rise not only in major banks like IDFC First Bank, State Bank of India, HDFC, ICICI, Kotak, Axis Bank, etc., but also in digital lending platforms like CASHe; it is more so in cities such as Bangalore, Hyderabad, Delhi, Pune, and Mumbai.
An Economic Goldmine
Be it for the richness of culture or the sheer splendor, Indian weddings are celebrated the world over. This is also an area of immense economic potential. The Prime Minister, Narendra Modi, last year, called for ‘wed in India’ if it generates jobs and economy. India’s wedding industry, with its associated industries like jewelry, textiles, and floriculture, if exploited properly. Has the potential to become an important economic driver.
The cost of a “happily ever after” in high-end India, hence, comes at a price changing trends and new financial strategies for an industry that boomed. As couples in their young ages strive to balance between keeping tradition and finance management. in finding happiness together, the future of this sector is sure to change.
