Eid Al-Fitr 2025: Economic Impact On Indian Businesses

Eid Mubarak! As India celebrates Eid al-Fitr 2025, the joyous end of Ramadan is marked not only by prayers and feasting but also by a nationwide surge in economic activity. From bustling bazaars in Old Delhi and Lucknow to crowded markets in Hyderabad and Kozhikode, the festival has unleashed a wave of consumer spending on clothing, food, travel and more. Early estimates and on-ground reports indicate that Eid festivities this year are providing a significant boost to local businesses and key industries, making Eid al-Fitr 2025 a major economic event across the country.

Surge in Festive Spending Across States

Markets across India have been packed with shoppers in the lead-up to Eid. In Uttar Pradesh, cities and small towns alike are witnessing vibrant commerce. Lucknow’s historic retail hubs – Nakkhas, Akbari Gate, Yahiyaganj, Aminabad – reported “cash registers… ringing” as people flocked to purchase festival necessities. Even in smaller towns like Sambhal (UP), traders are jubilant. “Markets are bustling with people due to Eid. Business is thriving, and sales have been excellent,” said Ehtesham Ahmad, president of a local trade board. After two subdued pandemic years, traders note that shopper turnout in 2025 has rebounded to near pre-Covid levels in many areas.

In Maharashtra, the story is similar. Mumbai’s famed sweet shops and apparel stores have been doing brisk business, with some popular outlets seeing a 30–50% jump in sales during the Eid week. Markets in largely Muslim neighborhoods of Mumbai such as Bhendi Bazaar and Mohammed Ali Road are teeming with customers buying sheer khurma ingredients, new clothes and gifts. “Eid is our peak season. Sales go up by nearly 60–70%,” said Abdul Raheem, who runs a garment shop in Hyderabad but speaks for many small retailers across India. This sentiment of booming sales is echoed by traders in Pune and other Maharashtrian cities where Eid shopping has picked up markedly.

In West Bengal, Kolkata’s traditional Eid shopping district around Nakhoda Masjid (Zakaria Street) is packed shoulder-to-shoulder. Shoppers are snapping up special delicacies like lachha and Banarasi sewai (vermicelli), fried in ghee, which are in high demand for the upcoming “Meethi Eid” feasts. Perfume shops in the area report heavy footfall as customers seek imported itra/attar fragrances for the holiday. Dates and dry fruits imported from the Middle East are flying off the shelves in Kolkata’s markets as families stock up for Eid treats. Local trade associations in West Bengal say this year’s Eid has brought larger crowds than last year, indicating growing consumer confidence.

Down south in Telangana, the capital city Hyderabad has been a focal point of Eid economic activity. Hundreds of thousands thronged the centuries-old bazaars around Charminar, Laad Bazaar and Mehdipatnam for last-minute Eid purchases. The lanes were decked with festive lights as shoppers extended market hours late into “Chand Raat” (the eve of Eid). Many Hyderabad shopkeepers celebrated a banner season, noting “a huge footfall this season compared to last”. Retailers selling traditional Hyderabadi clothing, bangles, and footwear saw brisk sales, and famous eateries were “brimming with biryani and haleem lovers” as locals and tourists alike indulged in Ramadan delicacies. However, not everyone reaped gains – some vendors felt the pinch of inflation. “This year, the sale went only up to ₹2–3 lakh. Last time sewaiyan (vermicelli) was ₹60/kg; now it’s ₹120, so people bought less,” explained one Hyderabad shopkeeper, illustrating how rising input prices tempered volumes.

In Kerala, where Eid is traditionally celebrated a day early in the Malabar region, markets have seen heavy rush as well. Towns like Kozhikode, Malappuram and Kannur experienced massive crowds in the days before Eid. From local garment stores to spice and dry fruit vendors, businesses in Kerala’s Muslim-majority districts report high demand. Remittances from Gulf-based Keralites ahead of Eid have further boosted purchasing power for many families. According to local observers, Malabar’s economy gets a seasonal lift during Eid – with shops extending hours and even non-Muslim merchants joining in with festival promotions. Coastal Kozhikode’s sweet shops sold out of popular Malabar specialities, and bakeries worked overtime to meet Eid orders.

Other states too have their own Eid economic stories. In Bihar, cities like Patna saw bustling malls and crowded traditional markets where people bought new apparel and sweets for the holiday. In Delhi, areas around Jama Masjid and Chandni Chowk were thronged by shoppers and foodies, contributing to a significant spike in old city commerce. Overall, the Eid al-Fitr economy in 2025 has made its presence felt nationwide – energizing both big-city retail and small-town markets alike.

Retail and Apparel – A Fashion Windfall

One of the biggest beneficiaries of Eid spending is the retail and apparel sector. It is customary to wear new clothes for Eid, and this year saw a shopping frenzy for ethnic attire. Across India, stores reported sharp spikes in sales of traditional garments – kurta-pajamas, salwar suits, sarees, sherwanis, hijabs and more. Industry estimates suggest demand for traditional clothing surged by 40–50% in the weeks leading up to Eid. This trend was visible in both urban malls and neighborhood boutiques. In Lucknow’s Chowk market and Aligarh’s Dupatta Gali, for instance, embroidered chikan kurtis and zari work dresses were selling at a frenzied pace. Shopkeepers in these markets confirmed that customer footfall and purchasing of apparel were significantly higher than usual Ramadan times.

Notably, the festive rush has not been limited to brick-and-mortar shops. E-commerce platforms also jumped into the fray, offering Eid sales and discounts on clothing, accessories and gifts. Major online retailers rolled out special Eid collections and one-day delivery promises to entice last-minute shoppers. As a result, “even online sales witnessed a sharp increase during this period,” aided by attractive deals on fashion and electronics. From urban professionals ordering outfits on apps to families in smaller towns using online marketplaces to send gifts, digital commerce has complemented traditional shopping this Eid.

Still, many consumers showed a clear preference for in-person buying. “When it comes to buying clothes, people trust the stores they’ve frequented for years… they want to feel the fabric and try it on,” explained Ashok Motiyani of a UP garment traders’ association, noting that loyal customers thronged physical shops despite the growth of e-retail. Indeed, the tactile experience of shopping – bargaining in bazaars, checking quality up close – remains a cherished part of Eid prep for millions, underscoring that both retail and e-tail sectors enjoyed a festive boom.

Food and Sweets Sectors Taste Success

No Eid is complete without an abundance of food and sweets, and this reality translates into booming business for related sectors. In the final week of Ramadan, the demand for ingredients of the traditional Eid dessert sheer khurma (sweet vermicelli pudding) skyrockets. Sales of milk, sugar, rice, and sevaiyan (wheat vermicelli) rise exponentially as households prepare the special dish for the Eid morning. Confectioners across major cities like Mumbai and Kolkata reported a 30–50% jump in sales of sweets and dry fruits during Eid compared to normal periods. Iconic sweet shops in Mumbai’s Mohammad Ali Road area saw lines of customers buying firni (rice pudding) and sewai packets, while Kolkata’s legendary Haji Allauddin sweet market was flooded with orders for lachcha sewai and date confections – reflecting a nationwide sweet-tooth splurge

This festive demand has also meant a windfall for dairy farmers and milk suppliers. “Households buy extra milk for sweets and desserts. Our sales increase by 20–30% in the days leading up to Eid,” noted Abdul Gani, a milk supplier from Hyderabad. Many dairy cooperatives in Uttar Pradesh and Bihar ramped up supply in late Ramadan to ensure there’s enough milk for vermicelli puddings and tea when families and guests gather. Dry fruit wholesalers similarly did brisk trade; dates, almonds, pistachios and raisins – used generously in Eid treats – sold in bulk in markets from Delhi’s Khari Baoli to Kozhikode’s Valiyangadi.

Meanwhile, those businesses catering to savory palates also thrived. In Hyderabad, the Ramadan-long craze for haleem (a meat porridge speciality) culminated in record sales by Eid eve, with some famous eateries selling out by midnight. Numerous restaurants offered special Eid menus featuring biryani feasts and kebab platters, drawing diners eager to celebrate the end of fasting with lavish meals. Food delivery platforms noted a spike as well, as many opted to order in festive meals from their favorite outlets .

The broader hospitality industry rode this wave: hotels in cities with significant Muslim populations (like Hyderabad, Lucknow, Srinagar) held Eid brunch events and saw higher occupancy from families travelling for reunions. All told, the food & beverage sector experiences one of its busiest periods of the year around Eid – from the raw ingredient supply chain (farms, mills) to the final mouth-watering products at sweet shops and restaurants.

Not everything was perfectly sweet, however. Some consumers felt the strain of higher prices for essentials. Due to general food inflation earlier in the year, items like edible oil, dry fruits, and meats were pricier this season. As one shopper in Delhi remarked, “Prices of many ingredients have gone up since last Eid, but we can’t compromise on our traditions – we just try to buy smartly.” This was evident in Hyderabad where the doubling of sewai prices led some families to buy less quantity than before. Still, despite cost concerns, demand remained robust – with many treating Eid as a time for necessary indulgence after a month of restraint. Even in lower-income neighborhoods, community feasts and charity drives ensured that sweets and meals were distributed widely, translating donations into bulk purchases from local vendors. The net effect for the food sector was decidedly positive: Eid 2025 has been a “meethi” (sweet) one for business.

Travel Rush and Service Sector Upswing

The economic impact of Eid extends beyond shopping into travel and various services. Eid al-Fitr is an occasion for families to come together, prompting millions to hit the road or book tickets to reunite with loved ones. In 2025, this led to a travel rush in many parts of India. Long-distance trains running from metropolitan cities like Mumbai and Delhi toward eastern states (U.P., Bihar, West Bengal) were reportedly fully booked well in advance for the Eid weekend. State transport corporations in South India added extra bus services towards Kerala and Karnataka districts with large Muslim populations to accommodate the holiday demand. Even domestic airlines saw a spike in bookings on routes such as Dubai–Kozhikode and Riyadh–Hyderabad, as expatriates returned home for Eid celebrations. Travel agents described this year’s Eid as the busiest since the pandemic for routes connecting Gulf-based NRIs to their hometowns in Kerala and Telangana.

The hospitality and tourism industry also leveraged the festive moment. Hotels in city centers offered Eid holiday packages, while tourist spots (from Kashmir’s hill stations to Goa’s beaches) welcomed a surge of visitors taking advantage of the long weekend. Restaurant reservations on Eid day were hard to come by in many cities, thanks to families going out for celebratory lunches and dinners. Many establishments hired additional waitstaff and chefs to handle the Eid crowd, effectively creating short-term jobs. Some intercity cab operators and bus companies recorded double the usual bookings for the period, indicating how travel-oriented spending spiked around the holiday.

Beyond travel, numerous other services experienced an Eid-related uptick. Urban areas saw a boom in business for salons and beauty parlors as people groomed for the festivities. Henna (mehndi) artists, for example, had their hands full with clients adorning intricate designs – a trend noted strongly in places like Hyderabad and Mumbai where getting mehndi done before Eid is popular. Local photographers and event planners also had opportunities, as some families held Eid get-togethers and needed professional services.

Street-level services gained too. In many cities, rickshaw pullers and auto-rickshaw drivers reported higher earnings, thanks to the late-night shopping crowds and the frequent trips families made to markets and mosques. “We gave about 40% more rides on Chaand Raat than on a normal day,” estimated a cycle-rickshaw union leader in Old Delhi, highlighting the boost to transport services. Similarly, gig-economy workers like delivery drivers saw increased orders (food deliveries, gift couriering) which translated into more income opportunities during Eid.

Security services were another beneficiary – malls and markets hired extra guards for crowd control, and police departments incurred overtime, injecting money into those services and the local vendors supplying barricades, metal detectors, etc. In essence, the service sector – from travel to personal services – felt the positive ripple effect of Eid celebrations, complementing the surge in retail and food commerce.

Small Businesses Reap Eid Rewards

Perhaps the most heartening impact of the Eid economy is on small businesses and informal workers, for whom this festival season is a lifeline. For many small traders, artisans, and vendors, Eid accounts for a significant portion of their annual earnings. The weeks of Ramzan and Eid bring a flood of customers that can make or break their year. “Eid is more than just a festival – it is an economic engine that fuels businesses, creates temporary employment and sustains livelihoods,” notes an analysis in NewsMeter. This is evident in markets across the country.

Take the case of garment sellers and tailors. In Hyderabad’s General Bazaar, shop owner Abdul Raheem hires extra workers each Ramzan to manage the rush. “Sales go up by nearly 60–70% [during Eid], and we hire extra workers to manage the rush. The entire supply chain – from fabric wholesalers to tailors – benefits from the season,” he told reporters. It’s a similar story in Delhi’s Chandni Chowk and Lucknow’s Aminabad, where small clothing boutiques and tailoring shops run at full tilt to deliver Eid outfits.

Many tailoring shops extended their hours late into the night, and some tailors in Delhi even slept at their worktables to fulfill orders on time. These micro-entrepreneurs often see a few weeks of high demand that generate revenue equal to a few months of business in quieter times.

In the food sector, countless small vendors thrive thanks to Eid. Neighborhood bakers, snack makers, and tea stalls do roaring business especially during the night bazaars of Ramadan. In Hyderabad, women from self-help groups capitalized on the season by making and selling homemade snacks and pickles for Eid parties, earning much-needed extra income.

Across northern India, traditional sevai (vermicelli) makers ramped up production. In Lucknow’s Molviganj area – a hub for fine vermicelli – small-scale factories operated 24×7 to meet soaring demand from across the country. “We are working day and night to meet the increasing demand as Eid approaches,” one artisan said, as orders poured in from multiple states. The thin, handcrafted sevai from these family-run units is sought-after for its quality, and despite rising raw material costs, demand remains consistently high during Eid. Such examples underscore how deeply micro and small enterprises are entwined with the Eid economy’s success.

Street hawkers and temporary stalls also get a share of the pie. Many cities allow special Eid bazaars or melas where traders without permanent shops can sell wares ranging from bangles and cosmetics to toys and religious items. In Telangana and West Bengal, local authorities noted an uptick in temporary vendor licenses issued for Ramadan/Eid markets this year, reflecting growing participation of micro-sellers in the festive trade.

These vendors often invest in stock months in advance, hoping to earn substantial profits in the final days of Ramadan. For example, Hyderabad’s iconic night market at Charminar saw dozens of first-time entrepreneurs (often artisans or homemakers) set up stalls for Eid, providing them a platform to reach thousands of customers in a short span.

Crucially, Eid spending also injects money into rural economies. The festival prompts many city dwellers to send money back home or travel and spend in their native villages. This year, reports from parts of Bihar and Bengal suggest that Eid remittances from urban workers helped boost village markets – whether it’s buying cattle for the ritual sacrifice of Eid al-Adha (later in the year) or upgrading household items during Eid al-Fitr. While exact figures are hard to pin down, experts note that festivals like Eid help circulate urban wealth into rural areas, benefiting farmers and small rural businesses indirectly.

Overall, small businesses ride high on the Eid wave. Marginal entrepreneurs, from tailors to sweet-makers, often earn a large chunk of their yearly income in this season. Eid thus acts as an economic leveller of sorts: shoppers get good deals and unique products, while small-scale producers and traders get a welcome revenue boost. This dynamic reinforces how culturally important events double up as commercial opportunities for the micro economy.

Festival of Faith with an Economic Footprint

While rooted in faith and tradition, Eid al-Fitr’s economic footprint is undeniable. The festival fuels consumer spending, strengthens local economies, and provides employment opportunities on a wide scale. Economists point out that in a country as diverse as India, festivals of all communities contribute to overall economic activity. “Festivals like Eid are a great example of how cultural traditions drive economic activity,” observes Dr. Aarna Mehta, an economist, noting that the benefits range from boosting retail sales to supporting artisans. The Eid economy cuts across various sectors – from retail and food to services and transport – creating a ripple effect of prosperity.

In comparison to previous years, 2025’s Eid spending appears robust. With the pandemic downturn firmly in the past and inflation relatively moderated in early 2025, consumers opened their wallets more freely. Many businesses reported better sales than last year, and some even surpassed their pre-2020 records. That said, certain challenges like rising input costs did pose hurdles for a few vendors, reminding that broader economic factors still influence festive cheer. Industry watchers also note evolving trends: a greater overlap of online and offline shopping, a growing preference for ready-made fashion over custom tailoring among younger buyers, and more conscious spending habits in the face of high prices. These factors slightly tempered the growth in some quarters, but the overall trajectory remained positive.

As the moon of Shawwal ushers in Eid-ul-Fitr 2025, the scenes across India tell a story of celebration and commerce going hand in hand. The joyous cries of “Eid Mubarak!” are accompanied by ringing cash registers and sold-out shop shelves. From big cities to small towns, Eid has proven to be “one of the most commercially significant festivals in India” this year.

It brings together communities – not just in prayer and feasting – but also in marketplaces brimming with activity. In the words of a sweet shop owner in Kolkata, “The happiness of Eid shows in our sales – when our customers are celebrating, we also celebrate through our business.” Indeed, the Eid al-Fitr economy of 2025 has spread wealth and joy in equal measure, underscoring the powerful bond between culture and commerce in India.

Eid Mubarak to all – may the year ahead be as prosperous as this festive season!

Also Read: Holi 2025: Regional Markets Driving India’s Festival Economy

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