Tariffs: Indians groove on PM’s “Make in India” tune amid build-up to festive gifting

On a recent trip back from London, a young couple tucked into their suitcase a set of handcrafted items from Delhi-based Nappa Dori, a luxury leather goods and lifestyle brand — not for friends abroad, but as gifts for their own family in Jaipur. A decade ago, they might have chosen an international label. Today, the pride of giving something rooted in India, yet contemporary in design, has become the point. 

Last week, Prime Minister Narendra Modi also urged citizens to prioritise ‘Made in India’ products while making purchases, framing it as a duty to contribute to the country’s self-reliance and economic progress. His call gained new urgency amid the imposition of US tariffs on India over its purchases of Russian oil. 

Across categories—jewellery, beauty, fragrances, gourmet foods, and artisanal décor—home-grown brands are no longer competing with global names purely on price. They are now winning on identity, craft, and what many describe as “premium Indian-ness.” According to the Deloitte India Consumer Survey 2025, 59% of consumers prefer premium soft furnishings that are handcrafted and sustainable, while 37% seek customised or artisanal décor pieces that carry regional artistry and personal meaning. 

The festive season, which runs from Rakhi through Christmas, has become the strongest growth engine for brands. Take Manam Chocolates. Chaitanya Muppala, founder of the Hyderabad-based craft chocolate brand, says gifting isn’t just a seasonal bump but a business driver. “Forty to fifty percent of our business is driven by the consumer behaviour of one-to-one and one-to-many gifting,” he notes. From August to December, sales rise by 50–60%. For consumers, he says, the fact that the products are crafted with intent gives them an edge over “international but mass-produced products.”

"Retailers are increasingly collaborating with local manufacturers to source products tailored to Indian preferences, reducing reliance on imports and enhancing supply chain resilience," says Anand Ramanathan, Partner & Consumer Industry Leader, Deloitte India.

That blend of authenticity and aspiration is visible in beauty too. At Forest Essentials, gifting has transformed from a festive-only play to a year-round revenue stream, contributing nearly 5% of overall sales after clocking a 30% CAGR over the last three years. Executive director Samrath Bedi explains, “Regional festivals are celebrated with tremendous scale and enthusiasm, and this is directly tying into the rise in gifting demand beyond the metros. These markets are mirroring metro consumption patterns, with consumers seeking the same elevated, home-grown luxury experiences.”

The Gift Studio, part of the RPSG Group, has built its business around this shift. Founder Shivika Goenka says demand spikes 10x–15x during the festive season, driven largely by corporates. “Consumers in smaller cities are equally aspirational and discerning—they want the same high-quality, unique, and personalised gifting experiences as their metro counterparts,” she says. Growth in Tier-II and Tier-III cities has been “phenomenal,” she adds, thanks to e-commerce and logistics reach.

Even structured gifting platforms like IGP are thriving amid these changes. “Gifting isn’t just a part of our business, it is our business. Today, it makes up close to two-thirds of our overall sales, and that share has steadily increased over the last 2–3 years,” says Tarun Joshi, founder & CEO of IGP.

He explains the reasons behind this rise: “India has one of the youngest workforces in the world, rising disposable incomes, and a culture where every milestone—from birthdays to promotions to festivals—calls for a celebration.” IGP has seen gifting grow at a 30% CAGR.

“Speed and personalisation are now non-negotiable, which is why our 30-minute delivery feature is such a game-changer,” adds Joshi.

Ramanathan echoes the sentiment, “E-commerce platforms have empowered MSMEs and artisans to access national and global markets, driving innovation in packaging and product formats.”

Isharya, which blends modern silhouettes with traditional techniques, has seen festive sales rise 35–40% year-on-year. CEO Oona Dhabhar points out that gifting accounts for nearly 30% of their growth. “Everywhere, consumers are looking for the same thing—jewelry anchored in Indian-ness, but with a modern, versatile touch,” she says. Co-founder Gauri Tandon adds that even international demand is growing, contributing 15–20% of business.

Silver and lab-grown diamond jewellery, too, are riding the wave. At Giva, festive gifting now accounts for about 40% of purchases. Founder Ishendra Agarwal says lab-grown diamonds contributed nearly 20% of overall revenues in FY25, becoming one of their fastest-growing categories. “We’re seeing strong gifting demand across both metros and smaller cities, but the nature of it differs. In Tier 1 and 2 cities, we’re witnessing a growing surge in demand for affordable yet varied jewellery as more women are going out to work and actively participating in social events,” he explains.

At Aeromé, what started as an organic demand for signature scents in giftable formats has turned into a business vertical growing at 110% year-on-year. Founder Rishi Chhabria says, “Luxury hotels wanted take-home experiences for guests, and brands wanted personalised gifts. That demand led us to build a dedicated gifting team.” For the first time this year, Aeromé offered a flat 15% festive discount, and collections like Sandalwood, Jasmine, and Kashmiri Nargis have been selling across metros and smaller cities alike.

In personal care, Plum BodyLovin’ has noticed that gifting, once a small slice of the business, now contributes 5% of sales in peak months. ₹1,000 gift sets have found surprising traction in Tier-II markets. “Accessible yet aspirational pricing plays a big role here,” says brand lead Stuti Sethi.

“Driven by a combination of consumer sentiment, government initiatives like Make in India, and the rise of e-commerce platforms that actively promote indigenous products,” according to Ramanathan, homegrown luxury has increasingly found its footing. 

Gautam Sinha of Nappa Dori says gifting contributes 35–40% of overall revenue, with corporate and in-store purchases making up 80% of the total. Sales see a 25–30% jump around Diwali, weddings, and Christmas. “When we began, nearly 85% of our customers were expats. Today it’s closer to an even split with Indian clientele,” he says, adding that Chandigarh, Pune, and Hyderabad have emerged as strong markets.

Meanwhile, Amala Earth has found success in corporate gifting with a conscious twist. Founder Shriti Malhotra observes that companies now prefer gifts that are culturally rooted. “While global brands often appeal on the basis of aspirational value, Indian brands have an edge in storytelling, sustainability, and rootedness. Consumers today want gifts that not only delight but also carry a sense of identity and purpose,” she says.

All of this points to a larger cultural shift: gifting is no longer about just giving something “international or luxurious” It’s about giving something recognisably Indian, but with the polish of global quality. Whether it’s a box of artisanal chocolates, a trunk handcrafted by Indian artisans, or lab-grown diamonds shaped for contemporary occasions, home-grown brands are claiming both emotional and economic space in the festive market.