Diwali gifting budget slashed by 35-40%, says Assocham

In sync with low-key overall Diwali festivities due to slowdown concerns, Corporate India has slashed its festive gifting budget by 35-40% and is going rather lukewarm in gifting to associates, networked partners, employees, and others, according to a survey conducted by Assocham.

According to the industry body, demonetisation and issues related to roll out of Goods and Services Tax (GST) have affected the overall sentiment.

"Consequent to lower sales for Diwali gifting, FMCG companies are reporting less than normal sales. The case with consumer durable firms is also similar. Even festive sale of high-end smartphones seems to have been hit," Assocham secretary general DS Rawat said.

"The survey endorses the generally low key mood of trade and industry with considerable trimming of the festive budget," he said.

Assocham said its findings are based on a telephonic survey of 758 companies in Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Jaipur, Kolkata, Lucknow, and Mumbai in the run-up to Diwali. As per the survey, online shopping vouchers, gift cards, dry fruits, chocolate, wearable devices such as fitness trackers, are among the top choices for Diwali gifting for both employees and clients.

"The reduction in gifts is more for outside connects than employees," it added.