Diwali gifts lose lustre

– For Indian executive Bibhas Chakraborty, Diwali used to mean shiny expensive gifts from business associates keen to use the auspicious Hindu festival to deepen ties. Now, it’s mostly sweets and nuts.

As Asia’s third-largest economy battles waning consumer demand, extravagant corporate gifts risk becoming a thing of the past, leaving many worried that this weekend’s festival of lights – and presents – is losing its lustre.

“Earlier, the quality of gifts often included gold and silver-plated picture frames or bowls. But now, with the economic slowdown, that’s all changed,” Chakraborty, a Mumbai-based 48-year-old, said.

“The joy of opening wrappers to find surprising items has been replaced with the usual sweets ... which has taken the sheen off the festival somewhat.”

India’s corporate gift industry usually works overtime in the run-up to Diwali to meet a surge in demand – with the annual ritual seen as a convenient way to nurture business relationships while avoiding accusations of outright bribery.

But in Mumbai’s busy Mangaldas market, a street lined with shops offering festive discounts, third-generation entrepreneur Jatin Shah is a worried man.

The owner of Rainbow Dry Fruits, an 80-year-old gift packaging firm, Shah added 20 temporary workers to his staff of 15 to account for the anticipated Diwali rush. But orders have yet to materialise.

“In previous years... we would work till two in the morning. Now, since the orders are lower in size and scale, we finish work and pull down the shutters by 10pm,” Shah said.

Even orders for the cheapest items – small boxes of Indian almonds, walnuts, and cashews – have fallen by more than half, he said, bringing down the firm’s annual turnover by 35%.

“Diwali is not only the festival of lights but also represents economic prosperity,” Shah said.

Hindus mark Diwali with prayers to Lakshmi, the goddess of wealth, and the weeks leading up to it usually see an uptick in consumer spending.