How Durga Puja revitalises economy of West Bengal

In the bustling streets of Kolkata and across West Bengal, Durga Puja is far more than a religious observance—it's a colossal economic engine that pulses through the region each autumn. As the festival is ongoing, estimates suggest it will inject between ₹46,000 crore and ₹50,000 crore into the state's economy, a rebound of 10-15% from the previous year's ₹42,000 crore, which had dipped amid inflation and subdued sentiment. 

This surge, equivalent to roughly US$5.2 billion to US$5.6 billion at current exchange rates of about ₹88.8 per US dollar, underscores how the celebration of Goddess Durga's triumph over evil revitalises multiple sectors, from retail to handicrafts, while creating seasonal jobs and stimulating consumer spending. Recognised by UNESCO as an intangible cultural heritage, Durga Puja not only preserves traditions but also acts as a seasonal multiplier, contributing significantly to West Bengal's GDP — around 2.58% based on pre-pandemic studies. 

The festival's economic footprint has grown steadily, with variations in estimates reflecting differing methodologies and scopes of analysis. A 2019 British Council report estimated the creative economy around Durga Puja at ₹32,377 crore, with a focus on artistic and cultural elements. 

More recent media and stakeholder figures have pushed higher, with some reports citing up to ₹84,000 crore for 2023, encompassing broader retail and tourism spillovers. 

This year, the projected ₹46,000-50,000 crore range accounts for a post-2024 recovery, buoyed by corporate sponsorships, GST rationalisations and increased discretionary spending. 

This variability arises from factors such as inflation, weather and public mood; yet, the overall impact remains transformative, supporting livelihoods and fostering community investments.

Retail, shopping surge

At the heart of Durga Puja's economic revival is the explosive growth in retail, which forms the largest slice of the festival's financial pie. In the weeks leading up to the festivities, markets are brimming with shoppers seeking new sarees, kurtas, jewellery, and home decor, turning the period into Bengal's equivalent of a Black Friday bonanza. Organised retailers report double-digit sales increases, with jewellery up 25%, footwear up 20%, apparel up 22% and food and beverage up 18% in recent seasons. 

E-commerce platforms have accelerated this trend, logging 23-25% year-over-year growth in early festive sales for 2025, driven by the adoption of digital payments and the use of discounts. 

This shopping frenzy extends beyond big brands to thousands of small shops and street vendors, who set up temporary stalls selling everything from imitation jewellery to puja essentials. For many, this 2-3 month window provides the bulk of their annual income, with household spending averaging ₹33,000 on clothes, gifts and offerings. 

The British Council's 2019 mapping highlighted retail as the dominant sector in the Puja economy, dwarfing others in scale and reach. 

 In 2025, despite challenges for hawkers—who report a 40% decline in income due to online competition—the overall retail boom is expected to contribute substantially to the ₹46,000-50,000 crore total, with ripple effects felt in the supply chains for textiles, gems and accessories.

Idol-making, artisan livelihoods

The creation of Durga idols is a cornerstone of the festival's economic vitality, sustaining year-round livelihoods for artisan communities. Months before Puja, workshops in areas like Kumartuli in Kolkata hum with activity as sculptors mould clay figures of Durga and her attendant deities—Ganesha, Lakshmi, Saraswati and Kartikeya. These idols, ranging from modest household versions to grandiose theme-based installations, command prices from thousands to crores of rupees, depending on size and intricacy.

Artisan families, known as kumors, rely on advance orders that provide steady income, with the British Council estimating idol-making and related installations as key contributors to the creative economy. 

This sector not only employs sculptors but also stimulates demand for raw materials such as clay, bamboo, paints, and jute, creating backward linkages to suppliers and transporters. In 2023, the festival reportedly generated over 3 lakh jobs, many of which were in idol-making and allied crafts. 

For 2025, with economic rebound, this artisanal chain is poised for growth, underscoring how Puja preserves cultural heritage while bolstering rural and urban economies.

Pandal design, installation art

No Durga Puja is complete without the elaborate pandals—temporary pavilions that house the idols and double as artistic spectacles. These structures, often themed around global landmarks or social issues, employ a cadre of designers, carpenters, painters and project managers. Contracts for large pandals can run into crores, generating seasonal employment for welders, scenic artists, and prop makers.

The British Council classified installation art as a distinct sector with substantial economic input, highlighting its role in the festival's creative industries. 

In West Bengal's 45,000 Puja committees, the construction of pandals drives demand for materials such as plywood, scaffolding and fabrics, which involves logistics firms for transportation and setup. 

This year, state government grants of ₹1.1 lakh per committee—up from ₹70,000 in 2023—further fuel these projects, circulating funds into local communities and amplifying fiscal multipliers. 

Illumination, electrical innovations

The dazzling lights that adorn pandals and streets are a hallmark of Bengali Puja, particularly those crafted in Chandannagar, a hub for specialised illumination. Artisans here produce animated LED panels and mechanical displays that are rented out across the state, employing electricians, technicians and rental services in a niche seasonal industry.

Electricity demand spikes dramatically during Puja, projected to hit 12,050 MW in 2025, up from 9,912 MW the previous year, prompting utilities to offer concessions and temporary connections. 

This not only boosts revenue for power companies but also supports generator rentals and infrastructure upgrades. The illumination trade, with its artisanal cottage-industry status, makes a meaningful contribution to the earnings of its practitioners, blending tradition with modern technology.

Food, hospitality, tourism boost

Durga Puja transforms West Bengal into a gastronomic paradise, with street food stalls, sweet shops, and restaurants experiencing a massive surge in business. Food and beverage emerges as a significant sector, with catering for VIP events and bhog offerings adding to the tally. The British Council valued this at several hundred crores, a figure that is likely higher now, amid the post-pandemic recovery. 

Tourism amplifies this, drawing domestic visitors and a trickle of internationals to pandal-hopping trails and cultural shows. Hotels, homestays, and transport services are reporting higher occupancy, with app-based cabs and intercity buses experiencing significant growth. In 2024, Bengal welcomed over 18.5 crore visitors, a trend expected to continue in 2025, thereby injecting revenue into the hospitality and allied services sector. 

Carnival events further boost foot traffic, benefiting small businesses.

Advertising, sponsorship, media

Corporate involvement peaks during Puja, with brands sponsoring pandals, hoardings and experiential campaigns. Advertising spends surge, with average rate hikes of 15% this year, as firms launch products amid the festive buzz. 

The British Council noted advertising as a measurable contributor, in the hundreds of crores. 

Media coverage and gate ads contribute to this, making the festival a marketing powerhouse.

Supporting sectors: Logistics, waste, finance

Behind the scenes, logistics firms handle idol transport using trucks and cranes, while rental businesses for chairs, PA systems and stages see spikes. Waste management contracts for post-immersion clean-ups employ temporary workers, alongside security services. 

Financial flows intensify as well, with banks and NBFCs offering microloans for pandal budgets, thereby boosting cash circulation and merchant transactions.

Creative and Cultural Performers

Musicians, dhakis (drummers), photographers and videographers find gigs aplenty, with many casual workers depending on Puja for income. This creative services sector, including folk performers and sound technicians, sustains year-round livelihoods tied to the festival cycle.

Government role, multiplier effects

State interventions, such as grants to 45,000 committees, act as economic levers, with ₹1.1 lakh per group this year, injecting funds that multiply through local spending. 

These subsidies, alongside electricity concessions, enhance the festival's ripple effects, estimated to account for a third of West Bengal's GDP contribution from Puja-related activities. 

Intangible benefits, future outlook

Beyond numbers, Durga Puja fosters intangible benefits, sustaining artisan communities and cultural pride. The British Council likened its creative economy to that of small nations, emphasising its role in livelihoods. 

As West Bengal's consumer economy is projected to grow to ₹18.74 lakh crore by 2025, the festival remains a resilient force, adapting to challenges such as rain or economic downturns while driving inclusive growth.

In essence, Durga Puja's economic revitalisation is a testament to how culture and commerce intertwine in Bengal, creating a vibrant, multi-sector ecosystem that benefits millions annually.