By: Kuhuo Bajaj; Edited by: Shagun Khetan
Why do weddings in India defy the general notion of pragmatism? Consider the case of a modest household that spends an astronomical amount on a daughter's wedding, often going beyond their financial means. Such events highlight how deeply ingrained cultural traditions and social expectations are, taking precedence over economic constraints.
Weddings in India have always held a social reverence that defies economics and pragmatism. Even households below the poverty line allocate a substantial portion of their income, often up to 30% on average, which translates to an approximate figure of INR 5,00,000. A middle-class wedding, on average costs INR 15,00,000-25,00,000. Conversely, the top 1% wealthiest households spend a comparatively modest 5% of their income, yet the absolute expenditure is staggering, reaching INR 5 crores. This economic dichotomy is exemplified by recent extravagant celebrations such as the wedding paraphernalia of multi-billionaire Mukesh Ambani’s son Anant Ambani, the pre-wedding celebrations of which have been estimated to amount to INR 1200 Crore.
The economics literature has largely ignored these expenditures, perhaps because they fall into the realm of "non-rational" behavior. However, given their pervasiveness, and the dominant role accorded to economics in the formulation of policy, this omission can have serious consequences for the design of policy interventions. Money spent on celebrations is, after all, money not spent on food, education, health, and other productive inputs. Interestingly, an average Indian couple spends about twice as much on weddings compared to education, from pre-primary to graduation. This is a stark contrast to countries like the US, where wedding expenses are less than half of educational costs.
This disparity highlights a critical issue: the opportunity cost of lavish celebrations. While weddings and other celebrations have cultural significance, the financial burden they impose can divert resources from essential investments in human capital. This concern is not merely academic; it has real-world implications for development and economic growth. The funds directed towards one-time events could otherwise support sustained improvements in education, health, and overall quality of life. Policymakers need to recognize this trade-off and consider ways to balance cultural practices with economic realities.
Some critics argue that these opulent weddings serve as the driving force behind India’s burgeoning "wedding industry." It has now emerged as the fourth largest sector in the country, propelled by factors like urbanization, increasing disposable income, the emergence of wedding technology, and the pervasive influence of social media. In 2023 alone, the industry amassed a staggering Rs 4.74 trillion in revenue, marking a substantial 26.4% surge from the previous year.
The wedding industry is a conglomerate of various large and small sectors that collectively shape its dynamics. Catering and venue occupy a 30% share, followed by gifts and decorations at 19% and 14%, respectively. The industry assumes a pivotal role as a significant job creator, offering employment opportunities across various domains. It is estimated that nearly 15 million jobs are sustained by the wedding industry in India, encompassing roles ranging from wedding planners, photographers, caterers, and decorators, to makeup artists, hair stylists, musicians, and entertainment professionals, as well as artisans and craftspeople. Moreover, the industry's ripple effect extends beyond its immediate confines, catalyzing growth in allied sectors such as hospitality, tourism, retail, and technology.
On the other hand, it is true that the bulk of economic opportunities generated by the wedding industry are seen in tier 1 or tier 2 cities, through wedding ceremonies of the affluent middle and high-income groups. In semi-urban or rural areas, for the poor and marginalized households, there is a darker picture behind the wedding festivities.
In a paper titled “The Economic Lives of the Poor,” Banerjee and Duflo document that, in their sample from Udaipur, more than 99 percent of the poor households* spend on festivals, with their median expenditures on festivals being 10 percent of their annual household consumption. Rao, in his paper “Poverty and Public Celebrations in Rural India”, examines this paradox of very poor households spending large sums on celebrations. By using quantitative and qualitative evidence from South India, he argues that publicly observable celebrations have two functions: they provide a space for maintaining social reputations and webs of obligation, and they serve as arenas for status-making competitions. The first role is central to maintaining the networks essential for social relationships and coping with poverty. The second is a correlate of mobility that may become more prevalent as incomes rise.
Researchers also highlight expected dowry payments as a prominent alternative motive for savings in predominantly rural, dowry-paying societies. Often these households don't have enough savings to bear the entire cost of ceremonies and dowries, so they borrow from informal sources at high interest rates. A survey by IndiaLends in 2019 suggested that 20% of all loan applications received from young Indians aged 20-30 years in 2018-19 were for marriage with the average ticket size at ₹4.13 lakh. Typically, one could borrow anywhere between ₹10,000 and ₹40 lakh as a marriage loan. Interest rates vary from 10.5% to 37% per annum and loan tenures range from 3 months to 5 years.
Marriage payments, in the form of dowry, are widely prevalent in developing countries and often amount to several years of household income. Despite being illegal since 1961, dowry was paid in 95 percent of marriages during 1960-2008. In India alone, Chiplunkar et al. estimate that the total value of dowry payments between 1950 and 1999 was nearly USD 250 billion. Although there has been a decrease in outright dowry payments since the 2000s, it is still prevalent in its modern forms as “gifts” from the bride’s family to the groom’s. Data from the National Crime Records Bureau (NCRB) shows that 13,479 instances were reported in 2022 under the Dowry Prohibition Act, 1961. Moreover, 6,450 dowry deaths were reported during the same period. These reported figures are suspected to be only a small fraction of the total (reported and unreported) instances of dowry payments and dowry deaths in India.
Weddings are not just associated with crimes like dowry but also have direct correlations with female foeticide and infanticide. According to the National Family Health Survey (NFHS) and analysis from Pew Research Centre, at least 9 million girls are ‘missing’ in India as a result of female infanticide and foeticide from 2000 to 2019. Researchers argue that this is due to traditional son preference and intrinsically linked to the dowry system (technically illegal since 1961). The dowry system effectively commodifies women, so they come to be seen as expensive, as well as less powerful in the economic exchange within the joint family system. There is also a positive correlation between dowry and the age of the bride, where a higher dowry is demanded for an older bride. This contributes to the prevalence of child marriage, where the daughter is betrothed at an early age to save on dowry costs.
The economic and social complexities of Indian weddings defy simple categorization as mere celebrations. With an average wedding expenditure of around five times India's per capita GDP of INR 2.4 lakh and more than three times the average annual household income of INR 4 lakh, these events underscore a profound tension between tradition and pragmatism. The cultural significance of weddings and the social expectations they embody cannot be overlooked, yet the staggering costs raise critical questions about resource allocation and economic priorities. In a country striving for equitable development, reconciling these competing demands is essential.
Policymakers need to recognize this trade-off and consider ways to balance cultural practices with economic realities. 3 Private Member Bills have been introduced in the Parliament since 2015 to frame policies that can find a middle path between the two. The bills have aimed to prevent and prohibit excessive expenditure on weddings and related ceremonies across the country by seeking to restrict the number of wedding guests and dishes served. One bill also proposed that those spending above Rs 5 lakh on a wedding contribute 10% of the amount to support marriages of girls from poor families. However, due to lobbies, religious sentiments and concerns about social status, these bills were not passed.
In a country striving for equitable development, reconciling these competing demands is essential. The path forward requires a nuanced approach, balancing respect for cultural traditions with a pragmatic assessment of their social acceptance, economic impacts, and implementation.
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