Diwali marks the peak of India’s longest festival season, which begins with lord Krishna’s birthday at the end of the annual torrential rains in August and goes on up to New Year’s Day. It is also the time that the country’s economy receives a huge boost as consumption perks up.

People splurge on clothing, gifts, food, and sweets, among other things. In fact, the four months from September to December contribute a major chunk to the annual sales of consumer durables. Every year, e-commerce majors like Flipkart and Amazon cash in on the euphoria with eye-popping discounts of up to 80% on mobile phones and ethnic clothing.

This year, though, may be a little different, for several reasons.

Reeling under major disruptions like the demonetisation of two high-value notes and the introduction of a new goods and services tax (GST) to replace the erstwhile complex web of levies, the economy is not doing all that well. GDP growth has slowed and private spending isn’t what it used to be, resulting in tough times for small businesses. A recent report by the Confederation of All India Traders, a body of around 60 million merchants, suggests that markets across the country have recorded a 40% decline in sales this festive season. However, as if it were a Diwali gift, there have been signs of a mild revival in the economy, with the effects of demonetisation and GST seemingly beginning to wear off.

Meanwhile, adding to the gloom is a temporary ban on the sale of crackers—translating into major losses for a key seasonal business—in the National Capital Region. The ban, imposed by the supreme court of India, is a measure to avoid worsening the city’s already hazardous air quality. The day after last year’s Diwali, locals in New Delhi woke up to a blanket of smog, leaving citizens as well as animals and birds choked. The revelry had led to a massive spike in particulate matter, pushing the city’s air quality index into the red zone for days, according to the New Delhi-based Centre for Science and Environment.

While other cities of the country are not affected by the ban—though they, too, are equally polluted—increasing awareness over the years has led to more subdued celebrations as far as fireworks are concerned—a trend that is expected to continue this year. In fact, a survey by the Assocham Social Development Foundation shows that Indians in other major cities want the ban expanded to their cities, too.

There are other reasons for the dampened mood. Bengaluru, for instance, is still recovering from the chaos caused by the heaviest downpour in 115 years, and traders there are complaining of a “dramatic reduction” in sales.

But make no mistake, India will still celebrate its festival of lights this year. Just a little quieter, easier, and sober.

A market in Ahmedabad, Gujarat, on Oct. 15, ahead of Diwali.
Image: AP Photo/Ajit Solanki
Lanterns and lamps at a roadside stall in Mumbai.
Image: AP Photo/Rafiq Maqbool
A shopkeeper sells fire crackers in New Delhi.
Image: AP Photo/Tsering Topgyal
Fire crackers are displayed in a shop ahead of Diwali in New Delhi.
Image: AP Photo/Tsering Topgyal
BSE, Mumbai. Indian stock markets function briefly on Diwali in what is called “Mahurat Trading” and deemed auspicious.
Image: Reuters/Shailesh Andrade
A potter makes earthen lamps in Ahmedabad on Oct. 10, 2017.
Image: Reuters/Amit Dave
The term Diwali is a version of Deepavali, meaning row of lights. Lighting earthen lamps at homes is a key part of the celebrations.
Image: AP Photo/Manish Swarup
Workers prepare sweets at a workshop in Jammu for the upcoming Diwali festival.
Image: EPA-EFE/Jaipal Singh
A worker makes candles at a workshop in Kolkata. Candles, too, are used to decorate temples and homes.
Image: Reuters/Rupak De Chowdhuri
Diwali revelers pay tribute to fallen Indian Army soldiers ahead of Diwali 2016 in Chandigarh, India.
Diwali revelers pay tribute to fallen Indian Army soldiers ahead of Diwali 2016 in Chandigarh, India.
Image: Reuters/Ajay Verma
A typical Diwali night in Mumbai.
Image: Reuters/Danish Siddiqui
Delicacies offered to lord Swaminarayan at an Ahmedabad temple as part of Diwali celebrations.
Image: Reuters/Amit Dave
Firecrackers are an essential part of Diwali celebrations.
Image: AP Photo/Tsering Topgyal
Diwali night in Leicester, Britain. The festival is celebrated by Indians abroad, too.
Image: Reuters/Darren Staples
Celebrations at Trafalgar Square, central London, on Oct. 15, 2017.
Celebrations at Trafalgar Square, central London, on Oct. 15, 2017.
Image: Reuters/Tolga Akmen
A family rides through smog in New Delhi a week after Diwali 2016.
Image: EPA/Harish Tyagi
New Delhi a day after Diwali 2016.
Image: Reuters/Adnan Abidi

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