India, Oct. 16 -- For over three decades, 73-year-old Subey has set up his modest stall every Diwali season to sell earthen diyas. This year, too, he sits behind a small spread of lamps laid out on a worn cloth, hopeful that someone will stop and buy. "Inflation touches everyone," he said quietly, "but for us, prices have barely moved, just about Rs.100 more in the last 10 years."

As a flood of LED lights, scented candles, lanterns and decorative fixtures dominate festive markets, traditional diya sellers like Subey are finding it increasingly difficult to survive. "Fifteen years ago, 100 diyas would sell for just Rs.40. Now the same number sells for Rs.120," he said. Once a diya maker himself, Subey no longer crafts them by hand. "I use...