Some say many Indians are overspending on lavish weddings abroad.
Indian wedding celebrations in Phuket, Thailand. A high-end wedding can cost millions of dollars. Photo: Shutterstock
Tourism activity in the region is now slowly returning to pre-Covid-19 levels as more wealthy Indian families invite friends and relatives to attend “foreign weddings” across Southeast Asia and even beyond.
In response to such developments, Indian Prime Minister Narendra Modi expressed concern that the trend of overseas weddings would weaken the country's tourism trade. Modi's speech may have been prompted by the decline in the value of the Indian rupee, which has been at a record low against the US dollar in recent months.
"The new trend is that some Indian families will hold weddings abroad. Is this necessary? If the wedding is held domestically, the expenses will still be domestically," said Prime Minister Modi.
Modi's speech comes as India's wedding industry is enjoying a bumper season. During a 23-day period from November to December, about 3.5 million Indian couples tied the knot, generating revenue worth about 5 trillion rupees ($60.2 billion), according to the Confederation of All India Traders (CAIT).
Economists say stemming the currency's slide was a key driver of the Prime Minister's speech, which also falls in line with the "Vocal for Local" campaign, which focuses on getting more Indians to buy goods and spend on services domestically.
India's trade balance - the difference between the value of its exports and imports - is in peril amid a slowing global economy, according to Biswajit Dhar, professor of economics at the Council for Social Development, a New Delhi-based research body.
Although the International Monetary Fund rates India as the fastest-growing major economy, Mr. Dhar also said the rupee's decline is raising costs because much of this growth is supported by imported inputs.
“Above all, anything that causes a drain on foreign exchange can be very serious,” he said, referring to lavish overseas weddings.
However, Indian tourism industry representatives say they are preparing to tighten these rules, possibly through higher taxes on any overseas spending above a predetermined ceiling.
Southeast Asian countries such as Thailand and Indonesia are attracting wealthy Indians looking to get married abroad, with tourism industry insiders saying the trend should be encouraged.
Helicopter Charter and Michelin Star Chef
India's wedding industry is enjoying a bumper season this winter. But wealthy Indians are opting for overseas weddings. Photo: Shutterstock
The ability of wealthy Indians to spend on the finer things in life has been demonstrated by a recent spate of overseas weddings, which have featured everything from gondola rides to Michelin-starred chefs and celebrity singers.
Even middle-class families in India are willing to spend big on luxuries like hiring helicopters to take the bride and groom to the wedding venue. A high-end wedding in India, with designer dresses for the bride and bridesmaids, and expensive gifts for guests – can easily cost $5 million. And Indians are keen to keep up with the trend.
The way for India to recoup some of the money spent on established wedding venues in Thailand or the Maldives is to build its own high-end wedding infrastructure, said Sumit Agarwal, professor of economics at the National University.
“Some countries like Thailand are great wedding destinations because they have capitalized on the strength of wedding tourism in the country.
In the current context, India is developing its tourism industry, but Mr. Agarwal said the country "has not promoted luxury tourism for the wealthy." Sometimes, the need to hold a wedding abroad is to increase the ostentation.
India is blessed with many exotic locations, ranging from the pristine Himalayas and vast deserts to pristine white sandy beaches.
India's remote Andaman and Nicobar Islands, off the coast of Myanmar, or the northern Maldives territory of Lakshadweep, could easily compete with other destinations as high-end wedding event destinations, say industry experts.
But that doesn't mean India hasn't attracted people wanting to get married in the country.
Ekta Sharma, director of Khyaath Design Holidays in Gurugram, said she recently helped a couple from the Philippines organize a week-long wedding in Jaipur, the capital of Rajasthan, booking the wedding reception at old royal palaces and luxury hotels.
However, it is not always possible to meet the wishes of tourists who want to hold weddings here because the demand for high-end hotels in places like Jaipur has far outstripped the supply and there is a waiting period for rooms until the end of February next year./.
