India’s festive economy has hit a new record, with Diwali 2025 sales touching ₹6.05 lakh crore ($72.9 billion) — the highest-ever in the country’s trading history — driven by surging demand for Indian-made goods and services, according to a nationwide survey by the Confederation of All India Traders (CAIT).

The “Research Report on Diwali Festival Sales 2025,” prepared by CAIT’s research wing, the CAIT Research & Trade Development Society, found that total goods sales accounted for ₹5.40 lakh crore ($65.1 billion), while services contributed ₹65,000 crore ($7.8 billion). The data was compiled from 60 key distribution hubs, including major metros and Tier-2 and Tier-3 cities.

CAIT Secretary General and Chandni Chowk MP Praveen Khandelwal said the record-breaking trade figures highlight both India’s economic resilience and the growing consumer embrace of the government’s “Vocal for Local” and “Swadeshi Diwali” campaigns.

“Prime Minister Narendra Modi has emerged as a strong brand ambassador for GST rationalization and the Swadeshi movement,” Khandelwal said. “His call for local products resonated across markets, with 87% of consumers preferring Indian-made goods over imported items.”

The report noted a sharp decline in demand for Chinese products, while Indian-manufactured goods recorded a 25% increase in sales compared with last year. Overall, Diwali sales grew 25% from 2024’s ₹4.25 lakh crore ($51.2 billion), with traditional and non-corporate retailers contributing nearly 85% of total business — a strong comeback for India’s physical markets.

CAIT National President B.C. Bhartia said grocery and FMCG items accounted for 12% of total sales, followed by gold and jewelry (10%), electronics and electricals (8%), and consumer durables (7%). Other significant segments included garments (7%), gifts (7%), home décor (5%), furnishings (5%), sweets and namkeen (5%), textiles (4%), pooja articles (3%), fruits and dry fruits (3%), bakery and confectionery (3%), and footwear (2%). Miscellaneous goods made up 19% of total trade.

The services sector also benefited from the festive boom, adding an estimated ₹65,000 crore ($7.8 billion) to total turnover. Hospitality, packaging, logistics, cab services, event management, and delivery operations saw heightened demand as Diwali celebrations spurred spending across multiple industries.

According to the study, 72% of surveyed traders credited rationalized GST rates — particularly on daily-use goods, apparel, footwear, confectionery, and consumer durables — for boosting sales volumes. Consumers also reported greater price stability, which encouraged sustained festive spending.

CAIT’s sentiment indices showed strong optimism, with the Trader Confidence Index (TCI) at 8.6 out of 10 and the Consumer Confidence Index (CCI) at 8.4. The organization said stable inflation, higher disposable incomes, and faith in the national economy were key drivers of the festive surge, which is expected to continue through the winter and wedding season.

The report estimated that Diwali trade activity generated around 5 million (50 lakh) temporary jobs across logistics, packaging, transport, and retail. Rural and semi-urban regions contributed nearly 28% of total sales, underlining deeper economic participation beyond metropolitan markets.

Khandelwal said the findings reinforce the importance of India’s 90 million small businesses — the backbone of the non-corporate, non-agriculture economy — as drivers of national growth.

CAIT’s report recommended simplifying GST compliance, easing credit for small traders and manufacturers, developing logistics hubs in smaller cities, and expanding low-MDR digital payment systems. It also urged continued promotion of Swadeshi products through joint efforts between trade bodies and the government.

“This year’s Diwali has been historic — a celebration of prosperity, nationalism, and economic confidence,” the CAIT Research & Trade Development Society said. “Under Prime Minister Modi’s leadership, India’s retail sector has proven itself as the foundation of Aatmanirbhar Bharat — blending tradition, technology, and trust.”

(an exchange rate of ₹83 per USD)

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