Indian Weddings May Turn Slim & Trim

MAKING IT mandatory to quote the permanent account number for all transactions above Rs. 2 lakh for all modes of payment will help tone down the wedding industry scenario in India. The Income-Tax department has, in line with the government’s firm stand, started conducting raids on suspected tax evaders.

The business of wedding planners in India is at a very nascent stage. As there are no organized companies in the market these mom-and-pop organizations operate with the help of a manager, a wedding planner and associate with tentwallah, caterer, flower suppliers and photographers to conduct their business and charge what they feel like, taking most of the payments in cash.

Currently, the Indian wedding industry is over Rs. 100,000 crore and is growing at 25-30% annually. The estimated cost of a wedding with no expenses spared could be between a modest Rs. 5 lakh to a lavish Rs 5 crore. The country averages about 1 crore marriages every year. Even NRIs, impressed by the palaces and havelis, choose to experience a “fairytale” wedding in India, and contribute to the Indian wedding industry.

Indian weddings are well-defined right from the issuing of invitation cards to guests to organizing of all the religious ceremonies and the obligatory social partying. As a result, wedding planners can claim the credit of the grandeur of scale and bask in the glory. Their charges are even grander, on occasion even crossing the Rs. 1-crore mark. They get what they demand in what has been, so far, a recession-proof business.

After all, we do all love those decibel-filled, jam-packed, multi-layered weddings. They have all one can ask for - music, dance, bright lights, gaudy decorations, family drama and traditionally-observed customs at fixed intervals. The week-long functions include the Pre-wedding Photo-shoots, Bachelor’s party, Shagun, Sagai, Tilak, Mehndi, Sangeet, Wedding Pheras, Bidaai and Post-wedding celebrations.

Some favoured destinations for weddings in India are Goa and Jaipur. A wedding in Goa would cost Rs. 1-1.5 crore while a Jaipur wedding is estimated to cost Rs. 1-2 crore. For an ideal dream wedding an ideal destination is necessary.

Destination weddings are in vogue and people go to exotic foreign locales such as such as Nice, Greece, Thailand or the Caribbean islands. In Monaco’s Casino Square where Formula One cars race, the Indian groom, CEO of a luxury company, rode a white mare at the head of the procession of guests, all making their way to a five-star hotel. Besides race tracks, there have been weddings on cruises, a submarine and a Jumbo aeroplane.

Such weddings are an indicator of the family’s social status, standing and power, with lakhs and even crores of rupees being spent before, during and after the event. The wedding organizer and his client are in a win-win situation as most of the payment is in cash which does not come under the Income-Tax department’s scanner.

The wedding invitation card market in India is worth Rs. 10,000 crore annually. Wedding cards, resembling artistically-designed hard-bound books, each of which costs a few thousands of rupees, are sent along with gifts for each invitee.

The gifts range from packets of hi-quality dates from the Middle East, chocolates from Europe, Indian mithais, silver/gold Ganesha figurines or jewellery, or as a Gujarati businessman did, a car as a gift to each of his 200 invitees. It is not the money but the thought that matters, as the prospective bride or groom’s family are likely to explain.

A different theme is developed for each wedding function, and work is done accordingly on the decorations. The flower arrangements are done with exotic orchids flown in from Thailand or North-East India and tulips from Holland. As a result, the wedding pandal and venue decoration market is valued at Rs 10,000 crore annually.

Catering arrangements are done with Thai, Italian, Continental, Chinese, Vietnamese, Korean and Japanese cuisine on offer. Bringing of the raw ingredients as well as chefs from those countries add to the authenticity of the feast and opulence of the client. Buffets comprise over 100 dishes with a multitude of international cuisines as well as Indian regional culinary specialities.

A considerable amount of money is spent on drink parties which begin on the first day and continue till the last. Guests are served the best brands of liquor varieties such as Single-malt whiskies, Scotch whiskies, Vodkas, Wines, Champagne and liqueurs.

The bride and bridegroom’s costumes, make-up and jewellery are planned in coordination with that of their relatives. The wedding apparel market’s worth is worth Rs. 10,000 crore annually, bridal mehndi Rs. 5,000 crore and gold and diamond jewellery market Rs. 60,000 crore.

A rainbow of colours is added to the Sangeet ceremony with performances by well-known Indian film stars who charge crores of rupees to dance to Bollywood remixes at the venue. Troupes of foreign artistes from Egypt and Russia entertain guests with their professionally choreographed dance performances and charge a bomb. Decorations at the venue are based on settings seen in Bollywood films and TV serials and become a talking point.

Dreams of lavish spending on such weddings are soon to be shattered. The mandatory PAN quotation for transactions above Rs. 2 lakh will impact the money-laundering role of family-run wedding planners, operating as they are mostly on cash-only basis.

Introduction of a cashless economy is where the cash flow within an economy is non-existent and all transactions are routed through electronic channels. This would block the grey economy, prevent money laundering and tax evasion.

Wedding management companies like Ferns N Petals and entertainment-providers such as Wizcraft will gain. Standards of weddings will also improve, with slimmer, trimmer functions and festivities. New institutes will produce professionally-qualified event management executives will systemize the wedding planning business. As a result, organized companies will increase and the wedding industry will move towards a cashless economy. This will help support the national economy and benefit the society at large.