Global research firm Jefferies estimated that Indians' current average expenditure per wedding stands at over three times the average annual household income.
According to Jefferies, Indian weddings attract an average expenditure of about $14,500 ( around ₹12 lakh), which is three times the country's average annual household income of around $4,500 (around ₹4 lakh) and five times India's per capita gross domestic product of around $2,900 (around ₹2.4 lakh).
Analysts at the firm said that despite being an otherwise price-conscious society, Indians disproportionately spend on weddings compared to their income or wealth. The Indian wedding industry, valued at a whopping $130 billion (₹10.9 lakh crore), sees twice as much spending on weddings as compared to education, it added.
To meet the requirements, Indians often resort to various financial plans. Considering the significant financial investment required, planning begins very early on. Families often save for wedding costs years in advance. The report also focused on emerging trends in wedding financing.
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While families still largely contribute to wedding expenses, couples are also increasingly pitching in a larger share from their savings. Loaning out money from banks and lending platforms has been on the rise. Key lenders in the category identified by the research firm include ICICI Bank, HDFC Bank, Kotak Bank and Axis Bank among others and the interest rate typically ranges from 10% to as high as 36% per annum, depending on the credit history of the borrower.
The note cited a press release by the digital lending platform, IndiaLends, to highlight the increasing propensity among youth to loan out money for wedding financing. According to IndiaLends, from 2018-19, about 20% of the applications it received from Indians aged 20-30 years were for financing their marriage.
The brokerage further forecasted that wedding expenses are expected to rise steadily, and even disproportionately as household incomes continue to grow in India.
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