Record-breaking Diwali sales touch Rs 6.05 lakh crore: CAIT Report

Diwali 2025 trade figures indicate a 25 percent rise over last year sales.

India witnessed record-breaking Diwali sales this year with total festive trade touching Rs 6.05 lakh crore, comprising Rs 5.40 lakh crore in goods and Rs 65,000 crore in services, according to the Confederation of All India Traders (CAIT). The data, released in its comprehensive “Research Report on Diwali Festival Sales 2025”, is based on a nationwide survey across 60 major distribution centres, including state capitals and Tier 2 and Tier 3 cities, conducted by the CAIT Research & Trade Development Society.

Delhi’s Chandni Chowk MP and CAIT Secretary General Praveen Khandelwal said the sale highlights that the GST rationalisation and Swadeshi adoption has inspired both the trading community and consumers alike.

He noted that “Vocal for Local” and “Swadeshi Diwali” resonated deeply with the public, as 87 percent of consumers preferred Indian-made goods over imported products, leading to a sharp decline in demand for Chinese items. Traders reported a 25 percent surge in sales of Indian-manufactured products compared to last year.

Khandelwal added that Diwali 2025 trade figures indicate a 25 percent rise over last year’s Rs 4.25 lakh crore sales, with mainline retail – particularly non-corporate and traditional markets – contributing 85 percent of total trade, marking a strong comeback of physical markets and small traders.

Sectoral sales composition and service expansion

CAIT National President B C Bhartia said that sector-wise, grocery and FMCG accounted for 12 percent of total sales, followed by gold and jewellery (10 percent), electronics and electricals (8 percent), consumer durables (7 percent), ready-made garments (7 percent), and gift items (7 percent). Other major categories included home décor and furnishings (10 percent combined), sweets and namkeen (5 percent), textiles and fabrics (4 percent), pooja articles (3 percent), fruits and dry fruits (3 percent), bakery and confectionery (3 percent), and footwear (2 percent), while miscellaneous items made up 19 percent of the total trade.

He added that alongside retail trade, the services sector such as packaging, hospitality, cab services, travel, event management, tent and decoration, manpower, and delivery collectively generated an estimated Rs 65,000 crore, reflecting the ripple effect of the festive economy across multiple sectors.

High consumer sentiment and employment boost

According to the report, 72 percent of surveyed traders attributed higher sales volumes to reduced GST rates on daily-use items, footwear, garments, confectionery, home décor, and consumer durables. Consumers also expressed greater satisfaction with stable pricing, which encouraged sustained festive spending.

Trader and consumer sentiments were reported at a decade high, with the Trader Confidence Index (TCI) at 8.6 out of 10 and the Consumer Confidence Index (CCI) at 8.4 out of 10. Both traders and consumers believe the increased consumption trend is sustainable, driven by stable inflation, higher disposable income, and confidence in the national economy.

Khandelwal said that the non-corporate, non-agriculture sector – comprising over nine crore small businesses and millions of manufacturing units – continues to be the main engine of India’s growth. Diwali 2025 trade created 50 lakh temporary jobs in logistics, packaging, transport, and retail services, he said. Rural and semi-urban India accounted for 28 percent of total trade, confirming deeper economic participation beyond metros.

Policy recommendations for traders

Based on the research report, Khandelwal said CAIT has recommended simplifying GST compliance, enhancing credit access for small traders and manufacturers, developing logistics and warehousing hubs in Tier 2 and 3 cities, promoting low-MDR digital payments and market digitisation, and strengthening urban market infrastructure such as traffic and parking facilities. The association also urged continued promotion of “Swadeshi” through coordinated trade–government messaging.

“This year’s Diwali has been historic – a festival of prosperity, nationalism, and economic confidence,” he said, adding that India’s retail trade sector has proven itself as the backbone of Aatmanirbhar Bharat, symbolising the fusion of tradition, technology, and trust.”