Raksha Bandhan 2024: A Cultural Tradition with Economic Impact

Raksha Bandhan, a festival that celebrates the sacred bond between siblings, has always been deeply rooted in Indian culture, traditions, and customs. However, in recent years, the economic dynamics surrounding this age-old festival have evolved significantly. What was once a simple exchange of rakhis and sweets has now transformed into a bustling commercial event, reflecting broader shifts in consumer behaviour, market trends, and economic patterns.

Rise of E-commerce and Digital Influence

The rise of digitisation and the booming e-commerce market have significantly altered consumer behaviour. Online shopping platforms have made purchasing rakhis and gifts more convenient and accessible than ever before. The sale of online rakhis increased from 1.5% in 2018 to more than 7% in 2022, with metros and Tier 1 and Tier 2 cities driving the bulk of this demand.

Value of the Raksha Bandhan Market

The Raksha Bandhan market has experienced sustained growth, showcasing the continued emotional connection people have with the festival. According to the Confederation of All India Traders (CAIT), rakhi sales have consistently increased, with total sales rising from Rs 7,000 crores in 2022 to over Rs 12,000 crores in 2023.

Impact on Small Businesses and Artisans

While large corporations and online platforms dominate the festivities, Raksha Bandhan remains a crucial period for small businesses, artisans, and farmers. Traditional markets, particularly in rural areas, still see a surge in demand for handmade rakhis, sweets, and other festive items. These small-scale producers often rely heavily on Raksha Bandhan sales to sustain their livelihoods.

New Trends in Raksha Bandhan

New companies have emerged, focusing solely on natural and organic rakhis. Additionally, rakhis that depict the cultural and historical heritage of different regions have gained popularity. Companies are employing local artisans and craftsmen specialising in traditional art forms. Some of the new variants include:

• Khadi Rakhis from Nagpur
• Silk Rakhis from Mumbai
• Jute Rakhis from Kolkata
• Madhubani and Maithili Art Rakhis from Bihar
• Tea Leaf Rakhis from Assam
• Sanganeri Kala Rakhis from Jaipur
• Kundan Rakhis from Gujarat

Businesses are also capitalising on trending events, producing curated rakhis that resonate with the emotional and enthusiastic fervour of the masses. In 2023, Chandrayaan and Vasudhaiva Kutumbakam rakhis were in high demand, driven by the excitement surrounding India’s moon landing and its hosting of the prestigious G-20 summit.

Thoughtful Gifts for Your Loved Ones This Rakhi

Consider these thoughtful and unique gifting ideas to secure the future of your loved ones:

Mutual Funds: Instead of giving cash, invest in a mutual fund scheme in your sister’s name. You can invest through a SIP or lump sum payment, offering her decent returns.

Stocks: If you want your sister to benefit from India’s booming stock market, consider transferring some stocks from your portfolio to hers. This transaction is tax-free and can be easily done via any online brokerage platform.

Health Insurance: Secure your sister’s future by purchasing comprehensive health insurance for her, ensuring she is protected from rising medical costs and unforeseen events.

Raksha Bandhan continues to adapt to modern trends while preserving its cultural essence, reflecting the festival’s enduring significance in both traditional and economic contexts. As the festival evolves, it remains a testament to the enduring bond between siblings and the vibrant economic landscape of India.

That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!

This article is for informational purposes only. This is not investment advice. Disclaimer: Teji Mandi Disclaimer