Winning Bizness Desk
Mumbai.This Diwali, the festive trade in India grew by 25 percent compared to last year, reaching a record high of 6.05 lakh crore rupees. Of this total, 5.40 lakh crore came from product sales, while services contributed 65,000 crore. Last year, the total festive trade was 4.25 lakh crore. The data was released on October 21, 2025, in CAIT’s report titled “Research Report on Diwali Festival Sales 2025,” based on surveys across 60 major distribution centers, including state capitals, tier-2, and tier-3 cities.
Indian Products Saw Maximum Demand
According to the report, 87 percent of consumers preferred Indian-made goods over Chinese products, leading to a noticeable decline in demand for imports. Traders confirmed that sales of Indian products were 25 percent higher than last year, highlighting the impact of campaigns like “Vocal for Local” and “Swadeshi Diwali.” Around 85 percent of trade came from non-corporate and traditional markets, while rural and semi-urban areas contributed 28 percent, indicating a strong comeback of physical marketplaces over large malls.
GST Reduction Boosted Consumer Purchases
The report also noted that GST rationalisation played a major role in encouraging purchases. About 72 percent of traders reported increased sales for daily-use items such as footwear, garments, sweets, home décor, and consumer durables due to reduced tax rates. This GST reduction, combined with the festive mood, motivated both traders and consumers, further supporting the sales surge.
Sector-wise Contribution to Total Sales
According to CAIT National President B.C. Bhartiya, grocery and FMCG products accounted for 12 percent of total sales. Gold and jewellery contributed 10 percent, while home décor and furnishings added another 10 percent. Electronics made up 8 percent, consumer durables 7 percent, ready-made garments 7 percent, and gift items 7 percent. Other categories such as sweets and snacks, textiles, puja articles, fruits and dry fruits, bakery, and footwear accounted for the remaining share. Services like packaging, hospitality, cab services, travel, event management, and manpower created business worth 65,000 crore.
Temporary Jobs Generated Across Sectors
The festive season also created around 50 lakh temporary jobs, mainly in logistics, packaging, transport, and retail services. Non-corporate sectors, including 9 crore small businesses and millions of manufacturing units, proved to be a backbone of India’s economic growth. The surge in festive sales reflects the confidence of both traders and consumers in a stable economy with trusted pricing.
High Confidence Levels Among Traders and Consumers
This year, the Trader Confidence Index reached 8.6 out of 10, and the Consumer Confidence Index stood at 8.4, the highest in the past decade. Stable pricing, GST rationalisation, and the push for swadeshi products have encouraged the trading community and buyers alike, creating a positive ripple effect on the festive economy.
Pointers in a Nutshell
1. Diwali festive trade reached 6.05 lakh crore, 25% higher than 2024.
2. 87% of consumers preferred Indian-made products over Chinese goods.
3. 5.40 lakh crore from products and 65,000 crore from services.
4. Rural and semi-urban areas contributed 28% of total sales.
5. GST rate reduction increased sales of daily-use items.
6. Around 50 lakh temporary jobs created in logistics, packaging, and retail.
7. Trader and consumer confidence indexes reached decade-high levels.
