Home ／ Insights on entering the Indian market
2026.03.26
India's gifting industry was a huge market of about $75.1 billion (about 11 trillion yen) as of 2024, and is expected to reach $92.3 billion by 2030. Within that, the corporate gifting segment is about 12,000 crore (₹120 billion, about 204 billion yen), a little under 2% of the whole market. What stands out is that corporate gifting is growing two to three times faster than consumer gifting. Organized players now account for about half the market, and the shift from a traditional unorganized gift culture toward branded, premium products is moving fast. The corporate gift market is forecast to pass 270 billion rupees (about 480 billion yen) by 2030.
Behind this rapid growth are companies' rising awareness of branding as India's economy develops, growing recognition of gifting's importance as an employee engagement strategy, and the rise of corporate gifting services through digital platforms. Demand for employee welcome kits, performance recognition gifts, and festival gifts is structurally increasing, especially among IT companies and startups.
Diwali (the Festival of Lights) is the largest shopping period in India, accounting for 40 to 45% of annual gifting spending. The culture of companies giving gifts to employees, business partners, and customers is deeply rooted, and it carries enough weight that failing to give Diwali gifts can directly hurt employee satisfaction and business relationships.
According to a 2025 Diwali gifting survey, 58% of Diwali gifts are corporate and 42% are personal. Companies' average gift budgets have increased substantially in recent years, expanding to 2,500 to 4,000 rupees per employee (about ¥4,400 to ¥7,000). At premium companies and major IT firms, it is increasingly common to allocate 5,000 rupees or more per employee. For executives and key clients, it is not unusual to choose high-end gifts in the 10,000 to 50,000 rupee range (about ¥17,000 to ¥87,000).
Other important gifting occasions after Diwali include New Year (January), Holi (March), Onam (August-September, in South India), Pongal (January, in Tamil Nadu), and Christmas (December, especially in areas with a large Christian population). Fiscal year-end (March) performance recognition, new-employee onboarding (April), and company anniversaries are also peak periods for corporate gifting. India's cultural diversity must be understood, and a gifting calendar tailored to region and religion needs to be developed.
India's corporate gift market is rapidly diversifying and moving toward higher value-added items, beyond the traditional dried fruit and sweet boxes.
Technology gadgets and electronics top the list with a 22 to 25% market share. Wireless earbuds, smartwatches, portable speakers, and power banks are staple items. Following these, popular categories include personalized and customized gifts (monogrammed items, custom designs), sustainable and eco-friendly products, premium office supplies (high-end notebooks, fountain pen sets), and branded swag packs (apparel and accessory sets with a company logo). Gift vouchers (24%), bags and luggage (16%), and stationery (15%) also rank near the top.
The fastest-growing category is sustainable gifting, expanding at an average annual rate of 9.5%. According to surveys, 80% of individuals prefer environmentally conscious corporate gifts, and 60% prefer corporate gifts made in India. Eco-friendly hampers using reusable packaging materials (jute baskets, bamboo trays) are popular, with herbal tea, handmade soap, organic chocolate, and houseplants as staple contents. More than 50% of Diwali hampers are projected to shift to sustainable packaging by 2027.
A shift from physical gifts to experiential gifts is also a notable trend. "Experience gifts," such as spa and wellness experiences, cooking classes, wine tastings, and adventure activities, are projected to account for a third of urban Diwali gifting by 2030. They hold especially strong appeal for millennial and Gen Z employees.
Reflecting heightened health consciousness since the pandemic, demand for wellness-related gifts has surged. Fitness trackers, yoga mat sets, organic food baskets, and Ayurvedic product sets are popular. Choosing gifts in line with a company's employee well-being strategy is becoming the mainstream approach.
Corporate gifting in India is subject to tax rules. When designing a gifting program, a company needs to accurately understand these regulations.
Income Tax Rule 3(7)(iv) provides that, for gifts in kind from an employer to an employee, the value counted as salary income is zero where the annual total is less than ₹5,000. Put the other way, the moment the annual total reaches ₹5,000, what becomes taxable is not just the excess but the entire amount. Designing a budget on the assumption that only the excess is taxed means under-estimating the withholding, so be careful when setting the budget. Cash gifts are taxable in full whatever the amount.
Gifts to business partners and clients can be deducted as a business expense, but the content and the amount have to be reasonable. Where GST bites is input tax credit. Under CGST Act 17(5)(h), input tax credit is denied on goods given away free as gifts. The often-quoted "₹50,000 per person per year" threshold comes from paragraph 2 of Schedule I to the CGST Act, and it covers gifts from an employer to an employee, not gifts to business partners. Proper record-keeping and tax filing are required.
Digital platforms are rapidly gaining a presence in India's corporate gifting market. Platforms such as Xoxoday, Empuls, Giftcardsindia, and the Amazon Business Gift Store offer one-stop gifting solutions for companies. These platforms integrate features such as bulk-order customization, delivery logistics, budget-management dashboards, and tax report generation, greatly improving the efficiency of HR and marketing departments.
Digital gift cards and gift vouchers are also growing in popularity, valued for the flexibility they give recipients to choose products to their own taste. Gift cards for platforms such as Amazon, Flipkart, Swiggy, and Zomato are especially popular among younger employees.
The corporate gift segment is expanding faster than consumer gifting. The gifting industry as a whole is a massive market, and organized players are gaining a greater presence as branding and premiumization progress.
Diwali is the largest shopping period, when India's annual gifting spending is most concentrated. The culture of companies giving gifts to employees, business partners, and customers is deeply rooted, and it carries enough weight that not giving a Diwali gift can affect employee satisfaction and business relationships.
While technology gadgets and electronics hold a large share, sustainable gifting is the fastest-growing category. There is a growing preference for environmentally conscious corporate gifts and those made in India. Demand for experiential gifts, such as spas and cooking classes, and wellness-related gifts is also increasing.
Under Income Tax Rule 3(7)(iv), gifts in kind are tax-free if the annual total stays under ₹5,000; once it goes above that, it is the entire amount, not just the excess, that becomes taxable. Cash gifts are taxable whatever the amount. Many companies set their budgets with this threshold in mind.
Japanese products have established a brand image in India built on high quality, meticulous craftsmanship, and refined packaging, giving them strong appeal as a differentiator in the premium gift market. Crafts such as matcha and Japanese tea, wagashi, sake, and lacquerware or ceramics are well suited as high-end gifts for executives and key clients.
For food gifts, obtaining an FSSAI license is essential first, and vegetarian compliance is a basic premise as well. Products containing animal-derived ingredients are not accepted in most of the market, so this needs to be addressed at the product design stage. It is also effective to prepare limited-edition Diwali packaging and pricing that also meets corporate demand in Tier 2 cities, combined with B2B marketing and listing on local gifting platforms.
India's corporate gift market offers a promising opportunity for Japanese food and gift companies.
Japanese products have established a brand image in India built on "high quality," "meticulous craftsmanship," and "refined packaging," giving them strong appeal as a differentiator in the premium gift market. Matcha, Japanese tea, premium confectionery (wagashi, high-end chocolate), sake, and crafts (lacquerware, ceramics) are well suited as high-end gifts for a company's executives and key clients.
India Market When entering this market, there are several important considerations. First is FSSAI certification is the first requirement — an FSSAI license is mandatory when selling food gifts. Second is vegetarian compliance: in India's gift market, it is a mandatory condition, and products using gelatin or other animal-derived ingredients are rejected by most of the market.
Third, localization must be thorough — developing products suited to Indian taste preferences (strong sweetness, heavy spice use) and creating limited packaging for festivals like Diwali are both effective. Fourth, middle-class setting a price range that targets a broader customer base. In addition to the premium market, a price range of 1,000 to 3,000 rupees that also serves Tier 2 cities corporate demand in Tier 2 cities is key to expanding your market.
On the marketing side, effective approaches include B2B marketing using Instagram and LinkedIn, listing on India's gifting platforms, and running campaigns timed to the Diwali season. Where businesses go wrong in India To avoid such failures as well, it is essential to develop an entry strategy grounded in a deep understanding of the market's cultural background.
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