Diwali brings a surge of spending and promotion in Canada, with businesses and government support tied to the festival’s growing presence.
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Diwali, the Festival of Lights, arrives with a strong push for shopping and promotions in Canada, where the season’s economic impact is increasingly felt beyond the subcontinent.
In Ontario, some retailers and businesses are aligning with the festival’s buying calendar, including car dealers. The car-buying trend associated with Diwali in India has crossed borders to Canada, with a number of GTA dealerships moving toward festive purchase offers and incentives. One example cited is Performance Auto Group in Ontario, which offers participating customers a one-ounce silver coin with the purchase or lease of a vehicle.
Clothing, gifts and sweets were also identified as key categories Canadians buy during the festival. Indo-Canadian cultural commentator Darshan Maharaja said Diwali is visible in Canada’s shopping calendar and compared it to an early start to the Christmas spending season, adding: “In a way, one can say that the Christmas spending season starts one month early because of Diwali.”
The Diwali season is preceded by other celebrations, including Dhanteras, described as the Day of Wealth. Families typically buy gold or silver on that day, and families also share South Asian sweets such as Mithai.
Even with household budgets under pressure, businesses described shifts in what people spend on. Vikram Rana, owner of Rana Jewelers in Brampton, said, “People used to buy bigger products, now they are buying smaller things, but they are buying more of them.”
At the same time, some small businesses reported weaker demand amid broader economic uncertainty. A restaurant operator in downtown Toronto, Soumya, said festive-season orders have declined by “almost gone down 50 per cent,” citing rising costs and changes to immigration, including fewer international students.
Canada’s growing South Asian communities form part of the context. In the 2021 census, about 828,000 people reported Hinduism, about 772,000 reported Sikhism, and 8,300 reported Jainism.
Diwali is a major Hindu festival, while other faiths mark distinct occasions that also involve light. Sikhs observe Bandi Chhor Divas and Jains observe Mahavir Diwas.
Government funding is also linked to Diwali-related events in Ontario. The province’s Ministry of Tourism, gaming and culture said that since 2018, “approximately $520,000 in funding support has been provided through Experience Ontario to Diwali-related festivals and events,” adding that supported festivals help communities attract visitors who stay in local accommodations, dine at restaurants, shop at local businesses and support main street economies.
Festivities in Toronto began weeks before Diwali. At Nathan Phillips Square, the Diwali Festival of Lights featured music, dance and vendors selling food and clothing before closing with fireworks on October 25. Another Toronto celebration at Mel Lastman Square featured 50 vendors and more than 150 performers.
In Brampton—described as the Canadian city with the largest South Asian population—a Diwali Mela is being held on November 8.
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