Diwali 2025: Festival of Lights ACTDIVATE projects ₹200B ($2.4B) in Economic Uplift Across India and the ROW.
Diwali, the iconic Festival of Lights, is celebrated by millions across India and worldwide. According to ACTDIVATE Event Intelligence analysis, the 2025 Diwali season is projected to generate over ₹200 billion ($2.4 billion USD) in direct economic activity, fueled by spending on food, gifts, decorations, travel, and entertainment.
Mumbai – September 2025 — Diwali, the iconic Festival of Lights, is celebrated by millions across India and worldwide. For 2025, Diwali falls on Wednesday, 22 October, with associated celebrations spanning 20–26 October across major cities and towns. According to ACTDIVATE Event Intelligence analysis, the 2025 Diwali season is projected to generate over ₹200 billion ($2.4 billion USD) in direct economic activity, fueled by spending on food, gifts, decorations, travel, and entertainment.
Key Facts (ACTDIVATE estimates):
Festival Dates: 20–26 October 2025
Expected Total Participation: 150 million people actively celebrating in India, with additional millions worldwide participating in diaspora communities.
ACTDIVATE Estimated Average Spend Per Person: ₹1,333 ($16 USD) in direct festival-related spending.
ACTDIVATE Estimated Total Economic Impact: ₹200 billion ($2.4 billion USD).
Projected Uplift to Local Businesses — Diwali 2025
ACTDIVATE Event Intelligence projects the incremental uplift in consumer spending during Diwali 2025 across key sectors in India.
| Category | Projected Uplift vs Non-Festival Week | Projected Incremental Spend (₹ billions) | Projected Incremental Spend (USD millions) | Notes |
|---|---|---|---|---|
| Retail & E-commerce | +45% | ₹36B | $432M | Boost from gifts, sweets, clothing, and online shopping. |
| Food & Beverage | +35% | ₹17.5B | $210M | On-site restaurants, street food, sweets, and catering. |
| Accommodation / Hospitality | +25% | ₹12.5B | $150M | Hotels, homestays, and short-term rentals in festival cities. |
| Transport | +30% | ₹6B | $72M | Taxis, rideshare, public transport, and intercity travel. |
| Entertainment & Cultural Events | +40% | ₹6B | $72M | Local fairs, concerts, community events, and religious programs. |
| Fireworks & Decorations | +50% | ₹17.5B | $210M | Additional demand for decorative items and pyrotechnics. |
| Total Projected Uplift | — | ₹95.5B | $1,146M | Represents incremental economic activity captured by local businesses. |
Source: ACTDIVATE Event Intelligence — Diwali 2025 Economic Impact Model. Figures are indicative and based on projected spending patterns.
Notes / Assumptions:
Baseline spending is derived from ACTDIVATE’s total Diwali economic impact estimates (₹200B / $2.4B USD).
Uplift percentages are based on historical festival-week vs normal-week sales data across categories in India.
Categories represent direct spend impacting local business ecosystems; indirect impact (e.g., supply chain, ancillary services) could increase total economic benefit further.
Fireworks & decorations have the highest uplift because Diwali sees spikes in seasonal demand, often doubling normal weekly sales.
Diving deeper into ACTDIVATE’s Demand Intelligence Engine, here’s an estimate of inbound international visitors to India for Diwali 2025, along with their origin markets:
Inbound Visitors to India — Diwali 2025
Estimated international arrivals during Diwali 2025 by origin market, based on ACTDIVATE Tourism & Events Intelligence projections.
| Origin Market | Estimated Number of Visitors | Key Destinations in India | Comments |
|---|---|---|---|
| United States | 35,000–40,000 | New Delhi, Goa, Mumbai | Leading source market; strong interest in cultural experiences. |
| United Kingdom | 25,000–30,000 | New Delhi, Goa, Jaipur | Significant diaspora presence; high engagement in festive tourism. |
| Singapore | 15,000–20,000 | New Delhi, Goa, Mumbai | Proximity and cultural ties contribute to increased travel. |
| Malaysia | 12,000–15,000 | New Delhi, Goa, Chennai | Growing interest due to cultural and economic connections. |
| Japan | 10,000–12,000 | New Delhi, Goa, Jaipur | Rising interest in cultural tourism and heritage experiences. |
| United Arab Emirates (UAE) | 8,000–10,000 | New Delhi, Goa, Mumbai | Strong travel ties and significant Indian diaspora. |
| Saudi Arabia | 6,000–8,000 | New Delhi, Goa, Mumbai | Increasing number of visitors due to cultural and religious interests. |
| Thailand | 5,000–7,000 | New Delhi, Goa, Chennai | Enhanced connectivity and cultural affinity. |
| South Korea | 4,000–6,000 | New Delhi, Goa, Mumbai | Notable rise in interest; fastest-growing source market. |
| Others | 15,000–20,000 | Various cities | Includes visitors from Canada, Australia, Qatar, Oman, and other countries. |
Source: ACTDIVATE Tourism & Events Intelligence — Diwali 2025 International Visitor Forecast Model. Estimates are indicative and based on projected flight, visa, and tourism trend data.
Key Insights:
Total Estimated Visitors: Approximately 120,000 to 140,000 international travelers are expected to visit India during the Diwali 2025 period.
Top Destinations: New Delhi, Goa, and Mumbai are the most searched and visited cities, known for their vibrant Diwali celebrations and cultural heritage.
Rising Markets: Countries like South Korea and Thailand are showing significant growth in interest, reflecting broader regional engagement with India's cultural festivals.
Diaspora Influence: The Indian diaspora in the UAE, Saudi Arabia, and Malaysia continues to play a pivotal role in driving travel during Diwali.
Diving further still….
At ACTDIVATE we are uniquely able to further explore economic uplift and expected footfall Diwali celebrations will drive at a market, city or district level. Here we have provided you with an example of this focusing on Diwali celebrations in the UAE, by providing demand and spend projections and what opportunity this event brings for businesses operating in the city during this time.
If you are interested in finding out more about a specific event or list of events in a city or destination, please arrange a demo by clicking on the link at the bottom of this article.
Indian Diaspora in UAE — Diwali 2025
ACTDIVATE Event Intelligence summary of the Indian expatriate community and estimated participation during Diwali 2025 in the UAE.
| Metric | Value | Source / Notes |
|---|---|---|
| Indian expatriate population in UAE (2025) | 4.36 million | The Arabian Stories News |
| % of UAE population this represents | 38–40% | Using UAE total population ~11–11.5 million |
| Diaspora likely celebrating Diwali | 80–90% | Estimate: most Hindus, Sikhs, etc. among Indian expats participate; dependent families included. |
Source: ACTDIVATE Event Intelligence — UAE Indian Diaspora Insights 2025.
From this, we assume of the 4.36 million Indian residents, about 3.5 to 4 million are likely to actively celebrate Diwali in UAE
ACTDIVATE Projected Uplift Impact for Diwali in the UAE:
ACTDIVATE projects that Diwali will bring a measurable uplift to local business across several categories. The following table shows estimated incremental spend by category over a typical non-festival period, based on the expat population, average spend behavior, and previous festival uplift benchmarks.
Projected Uplift to Local Businesses — UAE Diwali 2025
ACTDIVATE Event Intelligence projects the incremental uplift in consumer spending during Diwali 2025 across key sectors in the UAE.
| Business Category | Projected Uplift over Normal Period (%) | Estimated Incremental Spend (AED millions) | Estimated Incremental Spend (USD millions) | Notes / Drivers |
|---|---|---|---|---|
| Retail (clothing, jewellery, décor) | +35% | 1,050 | 286 | Gift & festive shopping spike; gold/jewellery strong segments. |
| Food & Beverage (restaurants, sweets, catering) | +30% | 800 | 218 | Family gatherings, dining out, sweets, special festive menus. |
| Gifts & Decorations | +50% | 600 | 163 | High spend on decorative items. |
| Transportation | +25% | 400 | 109 | Extra travel to gatherings, mall visits, inter-emirate travel, rideshares. |
| Entertainment / Cultural Events | +40% | 250 | 68 | Tickets for shows, community events, special programming. |
| Accommodation | +10% | 100 | 27 | Mostly visiting family, a few short-stays; modest uplift. |
| Total Projected Incremental Spend | — | 3,200 | 873 | Sum across categories. |
Source: ACTDIVATE Event Intelligence — UAE Diwali 2025 Economic Impact Model. Figures are indicative and based on projected spending patterns.
Interpretation & Opportunity for businesses operating in UAE during Diwali:
Total uplift: Diwali in the UAE could generate an incremental AED 3.2 billion (USD 870 million) in spending among Indian expatriates over the festival period, above what would typically be spent in a comparable off-season week.
Retail & F&B dominate uplift: these two categories alone account for nearly 60-65% of expected incremental spend.
Gifts & decorations show the highest percentage uplift (50%), though from a smaller base.
Transportation and entertainment also see meaningful increases, tied to social gatherings and events.
Accommodation uplift is mild, as many diaspora are local residents; only a small number travel or host overnight guests.
What is the Opportunity for Businesses during this Diwali period - what does this mean for your business & how to prepare:
Retail & E-commerce: Diwali drives the largest seasonal surge in consumer goods and online sales in India. Businesses leveraging real-time demand forecasting can optimize stock, delivery slots, and pricing to maximise revenue opportunities.
Hospitality & Travel: Hotels, transport operators, and airlines see spikes in domestic travel. Predictive demand intelligence can help optimize the pricing and capacity planning. Don’t just price based on what you see, compliment and validate with demand data.
Entertainment & Cultural Programming: Local events, fairs, and cultural programs attract crowds; dynamic scheduling and ticketing improve engagement and revenue. Market around relevant events to drive awareness and interest of your event to drive additional ticket sales.
City Management & Public Services: Traffic, safety, and crowd control are significant challenges. Event intelligence can guide public transport scaling, emergency readiness, and urban planning during peak festival days.
"Diwali is not just a festival of lights; it’s a concentrated engine of economic and cultural activity," said Ian Clark, Director of Partnerships at ACTDIVATE. "Our platform helps businesses anticipate demand, manage operations, and maximize revenue during this critical period."
About ACTDIVATE
ACTDIVATE provides real-time Demand Intelligence for businesses and cities worldwide. By integrating event calendars, movement data, and transactional proxies, ACTDIVATE enables companies to identify demand, in turn allowing businesses to optimize staffing, inventory, pricing, and marketing to maximise peak-season opportunities.
Interested to know how you can integrate Demand Intelligence for planning optimization?
For more information or to book a demo, visit: https://actdivate.com/book-a-demo
