Firecracker Industry of India

The 80 billion-rupee firecracker industry of India is the second-largest in the world after China. Last year, it witnessed a 30% drop, owing to unseasonal rains, slowdown-induced cash crunch and Supreme court’s order to celebrate a Green Diwali, in Delhi particularly.

Sivakasi located in the Virudhnagar district of Tamil Nadu houses over 1320 factories with licenses to sell firecrackers. It accounts for 80% of the country’s firework production, with 30% of its demand coming from Delhi.

With air pollution being a major concern in several Indian cities, Sivakasi has been feeling the heat for quite some years now. But the pandemic that triggered a strict lockdown and barred public celebrations has added on to the problems with current losses worth ₹100 crore. The Sivakasi manufacturers were looking forward to Diwali to get some relief. However, states from Delhi to Karnataka have banned firecrackers, therefore the demand in the ongoing festive season looks as bleak.

The only ray of hope for the firecracker industry is the campaign against Chinese products that were previously smuggled via Bangladesh. Therefore, with people becoming self-aware it might bring back some sparkle in the lives of those who work in Sivakasi.

Contributor: Team Leveraged Growth

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November 13, 2020
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