Elation and Disappointment: The Story of Bengal's Durga Puja Economy

Kolkata: As Bengal's Durga Puja kicks off in earnest today, it is time to recognise that along with being a cultural extravaganza, it is an economic powerhouse in its own right. The festival brings together diverse communities and, in the process, fosters a financial ecosystem that involves transactions of significant amount across the state. 

In the weeks preceding each Puja, the traditional shopping destinations such as Hatibagan, Gariahat, and New Market in Kolkata extend their operating hours well into the night. Last week, the Kolkata Police had to shut a vital thoroughfare to vehicular traffic to contain the pre-Puja shopping rush. 

In Kolkata's Dharmatala, Farhan Sheikh, a retailer of readymade garments said that uptick in business is largely due to the timing of people receiving their salary bonuses. 

"This is the time when many government and non-government employees, as well as labourers, do their festive shopping. Our sales reached their peak during the last one week," he says.

Ajay Gupta has been selling readymade clothes on the footpath of Gariahat in south Kolkata for the past 20 years. He says, “There was a time when people from both religions, Hindu and Muslim, used to kickstart their Puja shopping after August 15. The entire market revolved around the festival throughout the year. However, after 2014, the market experienced a series of setbacks, starting with the chit-fund scams, followed by the impact of COVID and subsequent lockdowns." 

Also read: Kolkata's Durga Puja Is Social, Cultural and Never Adequately Religious

The West Bengal chit fund scam, one of the largest Ponzi schemes in Indian history, continues to have a devastating impact on the lives of millions of people. An estimated 2 million investors, mostly from poor and lower middle-class backgrounds, lost over Rs 20,000 crores in it. Many investors lost their life savings and the reputation of the and its investment climate took a beating.

Gupta feels that the scams and the impact of the lockdowns might explain why the shopping picks up much later now.

At odds with the sellers on the footpath, the upmarket malls are upbeat. “Compared to last year, this year's Puja market is thriving. We have seen an increase in footfall and sales. Our primary estimate suggests that the business in our malls has grown by 30% since last year,” said Ramesh Pandey, director at Ambuja Reality, who manages two malls in Kolkata.

Retail is widely understood to be the primary driving force behind financial activity during the Puja season, contributing to a chunk of the total business. For small-scale retailers though, the July fire at Malangala Hat, one of the largest garment markets in eastern India, dealt a severe blow. While the market has since reopened, a segment of retailers shifted towards direct business with Delhi and Surat, worsening the challenges faced by wholesalers.

Shoppers ahead of the Durga Puja in Bengal's Kolkata. Photo: Aparna Bhattacharya

But while Kolkata may have seen retail activity, the picture has been grim in handicrafts hubs across the state. At Shantipur and Fulia in Nadia district, the heart of the handloom industry in the state, declining product demand and insufficient government support plague artisans. Both regions have thousand-year-old heritages and both grapple with reduced product demand.

Somen Pal, a Shantipur businessman connected to the industry, says, "In our area, 57 handloom units have closed down since the lockdown in 2020. The traditional weaving community now confronts the threat of extinction, as weavers disassemble their looms en masse and seek migrant labour opportunities. The younger generation shows minimal interest in weaving, as they have discovered more financially rewarding prospects in other fields, where their hard work leads to significantly higher earnings compared to the modest returns from weaving."

Economist Abhiroop Sarkar notes that the lockdown has two sides.

"One group faced a loss of income, while another group, driven by unmet demand, ventured into the market. Consequently, the market is on the path to becoming relatively prosperous, although not entirely restored to its previous economic conditions. Nonetheless, this shift has had an impact on those who lost their jobs or income,” Sarkar adds.

Also read: Durga Puja Washed Out for Kolkata’s Idol Makers

In 2019, a British Council study estimated the puja economy at approximately Rs 32,000 crore, contributing to 2.6% of the state domestic product. West Bengal Chief Minister Mamata Banerjee has estimated the figure will reach Rs 60,000 crore this year.

In a state starved of jobs, this “Durga Puja economy” is the lifeline for thousands of families, serving as their primary source of income. From crafting intricate idols to illuminating the city and creating stunning designs, families across generations are heavily involved in the preparations. The Pujas' essence thrives throughout the year.

In recent years, there has been a notable shift in the landscape of business operations, particularly with a marked increase in locally-owned businesses, predominantly led by women, owing to the influence of social media.

Just one year ago, Trinanka Poddar, fresh out of college, launched her handbag venture from her residence in Habra in the North 24 Parganas, with an initial investment of Rs 10,000. Leveraging social media platforms, she initially focused on a local customer base but gradually expanded her reach. Just ahead of the Puja season, Trinanka ventured into offline retail with the opening of her first physical store.

Similarly, Amrita Biswas, a resident of Nadia's Badkulla, has been running a clothing business for the past six years from her home. This time, she has invested nearly Rs 8 lakhs to open her own store.

“In small towns, not everyone has a lot of money in hand. However, during the Puja season, it's a must to buy new clothes, especially saris, so people are purchasing them. While sales happen throughout the year, Puja sales are particularly significant,” says Amrita.

(Translated from the Bengali original by Aparna Bhattacharya)

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