Diwali 2025: Record-Breaking Sales at ₹6.05 trn, Indian goods see 25% rise: Cait

Diwali 2025 marked a record-breaking ₹6.05 trillion in sales, with significant growth driven by the "Vocal for Local" campaign, reduced GST rates, and high consumer confidence. Indian-made goods saw a 25% sales surge, while FMCG, gold, and electronics led sectoral spending. Employment rose with 5 million temporary jobs created. Recommendations include simplifying GST, boosting credit access, and improving logistics to sustain growth, showcasing India's economic resilience and consumer optimism.

This year’s Diwali season brought unprecedented cheer to Indian markets, as nationwide sales surged to an all-time high of ₹6.05 trillion. The Confederation of All India Traders (CAIT) reported this historic feat on Tuesday, marking a 25% year-on-year growth compared to last year’s ₹4.25 trillion. The total comprises ₹5.40 trillion in goods and ₹65,000 crore in services, making it the largest festive business recorded in the country’s trading history.

A Strong Shift Toward Local Products

A significant factor driving this growth was the resounding success of Prime Minister Narendra Modi’s "Vocal for Local" and "Swadeshi Diwali" campaigns. These initiatives encouraged consumers to prioritize Indian-made products over imports. According to CAIT Secretary General Praveen Khandelwal, 87% of shoppers opted for domestically manufactured goods, leading to a notable decline in demand for Chinese products. This shift resulted in a remarkable 25% increase in sales of Indian-made items compared to the previous year.

Sector-Wise Breakdown of Diwali Spending

The festive business boom was evident across various sectors, with fast-moving consumer goods (FMCG) leading the way, contributing 12% of the total sales. Following closely were gold and jewelry at 10%, electronics and electrical products at 8%, and other categories like consumer durables, ready-made garments, and gift items, each accounting for 7% of the sales.

Lower GST and Consumer Confidence Boost Festive Sales

One of the critical drivers behind this record-breaking performance was the recent reduction in goods and services tax (GST) rates. The report highlighted that 72% of traders attributed the sales growth to lower GST rates, which now stand at 5% and 18% for most daily-use items. This tax relief, coupled with stable inflation and rising disposable incomes, helped boost both trader and consumer confidence. The CAIT report noted that the Trader Confidence Index reached 8.6 out of 10, while the Consumer Confidence Index was close behind at 8.4 out of 10.

With this positive sentiment, both groups expressed optimism about sustained consumption trends in the coming months, pointing to a stable economy as a key factor.

Recommendations for Sustained Growth

To build on this momentum, the report recommended several measures to further support small traders and manufacturers. These included simplifying GST compliance, improving access to credit, and developing logistics and warehousing infrastructure, especially in Tier 2 and Tier 3 cities. Such steps could help sustain growth and further strengthen India’s domestic market.

Employment Growth During the Festive Season

The festive season also brought good news on the employment front, with an estimated 5 million temporary jobs created across sectors like logistics, packaging, transportation, and retail services. This employment boost further underscores the wide-reaching economic benefits of this year’s record Diwali sales.

As India celebrates this historic milestone, the success of Diwali 2025 showcases the power of local manufacturing, favorable tax policies, and growing consumer confidence, setting a strong foundation for future economic growth.