From Gigs to GDP: How India’s Cultural Festivals Are Fueling Economic Growth

The entertainment and experiential economy is the new sunshine industry. As per the EY FICCI Entertainment report 2025 the sector grew 15% to cross INR 100 billion on the back of significant growth in ticketed events, government and corporate spending. The segment is predicted to grow at 18% to reach INR 167 billion by 2027.

The experience economy which includes; Travel and Tourism, Food and drink, arts and culture, events and festivals, is transforming the way business operate, creating new opportunities for growth and innovation across different economic segments. Apart from the top 10 metro cities, it’s the 40 additional B and C towns which is expected to see phenomenal growth in the coming years with a growing middle class and a larger proportion of disposable income or accessible credit. The gap between Rural and Urban per – capita income has reduced to 70% down from 84% and the rise in women in the workforce which has increased to 42% from 30% means a whole lot of new consumers reaching out for new experiences.

New venues, an opening up of heritage spaces and the post Covid era of wanting an experience beyond visiting a mall or going to the movies is what’s driving this segment. Influencers posting reels breathlessly, of their ever so charmed lives have created a sense of FOMO for anyone and everyone not enjoying that insta moment and taking that must take photograph.

The EY 2025 report states that there has been a 25% growth in the registration of IP’s this last financial year with a slew of concerts, festivals, art events, food festivals and craft platforms burgeoning across the country and seeing exponential growth in ticketing income. Teamwork Arts has experienced a 30% increase in ticketing, delegate and other non-sponsorship driven revenue across its many festivals including the Jaipur Literature Festival, Mahindra Kabira Festival and Sleepwell presents The Sacred Amritsar festival.

Traditional events like Kolkata’s famed Durga Puja have become organized with experiential walks through pandals to experience the most amazing art installations that come up in temporary spaces pre the religious ceremonies. As per the British Council report, Durga Puja contributes 2.58% to Bengals GDP amounting to INR 32.377 billion and provides employment for over 1 million gig workers.

While Vivid Sydney and Lyon Fete de Lumiere’s - City of Lights have annual light festivals, India has a multitude of occasions from weddings and family celebrations to traditional and religious occasions including Diwali, Kali Puja, Onam, Dusshera and so many more to light up their cities in a democratic way where citizens take on the onus of creating beautiful imaging rather than this being a responsibility of the state or of art curators. The lone Chandernagar lighting craftsperson has given way to enhanced LED gates and fantastical projections which light up streets, buildings and entire cities. This proliferation of creativity with millions of people taking their own initiative depending on their budgets provides an opportunity for innovation and creation of new experiences which can be experienced by millions of people. 

Experiential marketing is a powerful tool to help brands stand out and allow for brand recall among key target audiences. While TV and film placement may be good for mass brands to reach the low income level, luxury goods and products for the mid-size segments can be driven through creating a buzz and helps brand differentiate themselves and builds on their brand image.

The Mahindra Group 20 years ago began their foray into rebuilding their brand and looking at ways to build trust. They began with META – Mahindra Excellence in Theater Awards in Delhi and from there have grown to 7 branded arts festivals including the Mahindra Blues, Mahindra Kabira Festival and Mahindra Roots Festivals. Today they are seen as amongst India’s most trusted brands not just in India but across the world including by the Wall Street Journal in 2020. The Aditya Birla Group, Reliance Foundation, Kiran Nadar Foundation, Prestige and Sleepwell Groups are a few major brands who have invested into the arts and the experiential sector and are looking to long term benefits from this partnership.

Much of these changes can be tracked by following advertising spend and trends. TV advertising decreased by 20% in 2025 while digital advertising grew to 56% off the total ad spent. 67% of EY’s respondents have said they will increase their spend in events and experiential marketing in the coming years.

Consumers have increasingly begun valuing immersive experiences and are willing to try out new destinations, experience new ideas and pay a premium for that unforgettable experience which can be recorded and shared.