Despite heavy rains and uncertainty over the GST 2.0 rollout, the Durga Puja economy in West Bengal has touched an estimated Rs 65,000 crore this year, with Kolkata contributing nearly 70% of the total business. According to the economists, the festive economy has grown by around 8-10% compared to last year.
Kolkata leads the festive boom
Economist Ajitava Raychaudhuri noted that while overall business growth slowed slightly due to bad weather and market confusion over new GST rules, the Puja economy still showed strong momentum.
An earlier British Council study (2019) had valued Kolkata’s Durga Puja economy at around Rs 33,000 crore. In 2023, the figure rose to about Rs 55,000-57,000 crore, and this year it climbed further.
The 2019 study had put economic activity during puja in and around Kolkata at 2.6% of Bengal's GSDP; overall it was 4% of the state's GSDP.
Across 2,500 Durga Puja committees in Kolkata, nearly Rs 200 crore was spent this year on idols, decorations, lights, and rituals. For the entire state, the total spending on pujas is estimated at Rs 450 crore. These expenditures support thousands of artisans, decorators, labourers, and small traders, who depend on this season for most of their yearly income.
Food & beverage sector sees record demand
The food and beverage (F&B) sector emerged as the biggest winner this year. Restaurants across Kolkata reported a 20-25% increase in footfall, with revenues between Rs 1,200 crore and Rs 1,500 crore, according to Sudesh Poddar, president of the Hotel and Restaurant Association of Eastern India (HRAEI).
Restaurateurs Anjan Chatterjee and Siddharth Kothari said that their outlets saw record crowds during the five days of Durga Puja, with long queues and packed tables even during late hours.
Malls report strong but delayed growth
Kolkata’s eight major malls together recorded around Rs 900 crore in sales, marking 8-10% growth over last year. Mall operators said that the rain and the early start of the puja season slowed pre-festival shopping, which clashed with end-of-season sales.
"The growth in business was respectable this year due to the spurt in demand in late Sept," TOI quoted Ramesh Pandey of Ambuja Neotia, which operates the two City Centre malls, as saying.
Acropolis Mall recorded a 10%-15% increase in footfall compared to last year and a proportional rise in sales. "We expect higher footfall and stronger sales next puja," said Merlin Group corporate GM (hospitality and mall) Subhadip Basu. South City Mall executive director Amit Kumar said the mall had witnessed record footfall and sales over the past month.
Traditional markets face slowdown
Traditional markets such as Gariahat, Hatibagan, and New Market suffered a 20% dip in sales, with total earnings of around Rs 800 crore. Continuous rain and the growing popularity of online shopping kept many customers away.
"In the beginning of Sept, there was a lull as many people deferred their purchases to avail of the new GST benefits," said Sushil Poddar, president of Confederation of West Bengal Trade Associations.
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