How Ramadan boosts the Economy of India!

https://www.tbsnews.net/features/tbs-ramadan/how-ramadan-makes-economy-stronger-604874?amp This is the Business Standard report that provides the detail of how Ramadan makes the Bangladeshi economy stronger. Due to the lack of research in India regarding the economic impact of the Ramadan in India, I decided to corroborate this report and juxtapose it with the Indian Economy.

Bangladesh has the Muslim population of almost 150 million while India boasts 200 million Muslim Citizens. Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) estimated the economy during Ramadan and Eid at Tk3 lakh crore. Thus in India, with similar Muslim population base, would also be around ₹2 Lakh crores or $25 Billion which is almost 2.5% of the India's quarterly GDP!

Ramadan month upto Eid holidays includes sales of Iftar products, Fashion Sales, the zakat economy, tourism and transportation sectors, consumer goods and ironically even Bollywood Entertainment! For Iftar alone, 450,000 permanent restaurants, at least 200,000 temporary selling spots of 'iftar items' emerge during Ramadan in the country. If 10 crore people Iftars in India daily by spending ₹50 each, it alone accounts to whooping 15000 crores! This is substantiated by the managing partner of PwC Bangladesh who had conducted a survey on the Iftar economy in 2014.

Apart from that president of the Bangladesh Textile Mills Association (BTMA) states that cloths worth Tk50000 crores is sold during the Eid-ul-Fitr. President of Bangladesh Footwear Manufacturers Association states that Footwears worth Tk18000 crores is sold during Eid. In addition to the business of shoes, cosmetics, fashion items, crockeries, home appliances, etc also sees a boost during Ramadan. A leading fashion brand in the country, said products worth at least Tk5,000 crore are sold during Eid, which is around 60% of the entire year's sales. According to Bangladesh Jewelers Association (BAJUS), jewellery products worth Tk200 crore will be traded during this month.

Assuming just 2% rich Muslims gives Zakat or Charity of modest ₹10000 each will account to ₹4000 crores. Mosques repair and capital expenditures in the Madarsas throughout India happens in Ramadan. During Ramadan, almost all the Muslim private sector employees gets Bonuses and the massive Indian Muslim diaspora in Gulf Nations send enormous remittances during Ramadan, which provides Muslims in India more disposable income and thus purchasing power for spending in consumption as well as Investment. This can be seen during Eid, when Muslims in India take week-long holidays and spends it on Tourism or by visiting their hometowns in countryside. The most visible of it is the Bollywood! Blockbuster movies which are released mostly on Eid weekends to exploit this spree.

If we corroborate it with the empirical evidences that we get from the equally-sized Bangladeshi Economy, the Ramadan festival and Eid boosts India's economy by ₹200000 crore that provides a good stimulus as well as Indirect Tax collection to the Government as well! And then Wedding season follows after Eid too.....