New Delhi, Oct. 18 -- This year's festive season is split between the second and third quarters, forcing consumer companies to recalibrate their operational plans and earnings projections.

At the same time, a steep rise in input costs across industries is squeezing margins during a critical sales window, while persistent inflation threatens to deepen a K-shaped recovery by pushing middle-class households to curtail discretionary spending.

So, how crucial is this festive period to India's consumer economy, and how are companies navigating these headwinds to drive growth? Mint explains.

Sales during this period are vital, though the impact varies across product categories. Manufacturers of consumer staples such as packaged food, sweets, ...