The festive season is fast approaching, and across India, preparations are gathering momentum. Homes, markets and communities are getting ready to embrace the celebrations, bringing with them a familiar sense of joy, colour and anticipation.

For a large section of rural India, the festive season is much more than a period of celebration. It is also one of the most important business periods of the year. From Durga Puja, Dussehra and Diwali to regional festivals, weddings and the year-end celebrations, these months can bring a sharp rise in demand for garments, food, sweets, handicrafts, decorations, gifts, footwear and household goods.

For many micro-entrepreneurs, therefore, the festive calendar is closely linked to the business calendar.

Though it is difficult to establish that most microbusinesses earn the bulk of their annual revenue during festivals, as reliable national data does not measure seasonality at that level, it is safe to assume the pattern for consumer-facing businesses such as retail, apparel, food processing, handicrafts and other local services.

The Confederation of All India Traders (CAIT) estimated that the 2024 festive season generated around Rs 4.25 lakh crore of trade across India. Its study covered 70 major trading centres and considered buying around festivals including Raksha Bandhan, Ganesh Puja, Navratri, Durga Puja, Dussehra and Diwali.

A year later, CAIT estimated ₹5.40 lakh crore in retail trade during the 2025 Diwali season, approximately 25% higher than its 2024 estimate. Significantly for small businesses, CAIT reported that around 85% of the 2025 festive trade came through mainline retail, which includes the traditional, non-corporate marketplace where smaller traders have a substantial presence.

The composition of the 2025 festive business is equally revealing. According to CAIT, grocery and FMCG accounted for 12% of sales, gold and jewellery 10%, electronics and electrical goods 8%, consumer durables 7%, ready-made garments 7%, gifts 7%, home décor 5%, sweets and namkeen 5%, textiles and fabrics 4%, and pooja articles 3%.

These are categories in which thousands of small and micro enterprises participate—as retailers, manufacturers, artisans, distributors and service providers.

But why are we discussing these numbers? Because we cannot talk about the business performance and growth of micro-enterprises while leaving the most dynamic business season aside. Let us discuss the different aspects over the next few weeks.