In Rajasthan, the towns of Jaipur and Udaipur are beautiful and have a lovely festive atmosphere during that time. You might find local holidays or processions going on. In Punjab, check out Amritsar's Golden Temple—it's especially magical during Christmas week with decorations and music performances.
Instead of bigger tours, talk to guesthouse owners when you arrive places - they often know of low-key festivals, seasonal foods/markets to check out locally. Safe travels and have a wonderful trip exploring off the beaten path!
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