Diwali 2025 sales hit Rs 6.05 lakh crore; 87% of consumers chose Indian-made products: CAIT report

India witnessed a historic festive season this year, with Diwali 2025 generating record-breaking sales worth Rs 6.05 lakh crore, underscoring the resilience of India’s retail sector and the deepening impact of the “Vocal for Local” movement. According to the Confederation of All India Traders (CAIT), total trade comprised Rs 5.40 lakh crore in goods and Rs 65,000 crore in services, marking the highest-ever Diwali business in India’s trading history.

The findings come from CAIT’s comprehensive Research Report on Diwali Festival Sales 2025, based on a nationwide survey conducted by its research arm, the CAIT Research & Trade Development Society, across 60 major distribution centres, including metros, state capitals, and Tier 2 and 3 cities.

Swadeshi Diwali 

CAIT Secretary General Praveen Khandelwal said the report highlights Prime Minister Narendra Modi’s role as a “strong brand ambassador” for GST rationalisation and Swadeshi adoption. “The Prime Minister’s call for a ‘Vocal for Local’ and ‘Swadeshi Diwali’ resonated deeply with consumers,” he said, noting that 87% of buyers preferred Indian-made products, leading to a sharp decline in demand for Chinese goods.

Sales of Indian-manufactured products surged 25% compared to last year, with this year’s Rs 6.05 lakh crore trade marking a 25% increase over Rs 4.25 lakh crore in 2024. Traditional and non-corporate retail markets accounted for 85% of total trade, reflecting a powerful resurgence of India’s small traders and physical markets.

GST boom

CAIT National President B.C. Bhartia shared the sector-wise breakdown of sales: Grocery & FMCG (12%), Gold & Jewellery (10%), Electronics & Electricals (8%), Consumer Durables (7%), Garments and Gifts (7% each), Home Décor and Furniture (5% each), and Sweets & Namkeen (5%). Miscellaneous goods accounted for 19% of total trade.

The service sector also flourished, contributing Rs 65,000 crore through packaging, logistics, travel, hospitality, manpower, and event management services. “The festive economy’s multiplier effect is now evident across both goods and services,” Bhartia noted.

Policy support

Khandelwal said that GST rationalisation has directly boosted consumer demand, with 72% of traders crediting lower GST rates on essentials, footwear, home décor, and durables for driving higher sales. Consumer satisfaction with stable prices further encouraged sustained spending.

Trader sentiment also reached a decade high, with the Trader Confidence Index (TCI) at 8.6/10 and the Consumer Confidence Index (CCI) at 8.4/10. “The buoyancy reflects stable inflation, rising disposable incomes, and growing trust in India’s economic trajectory,” Khandelwal added.

Jobs and other impact

The Diwali trade boom created 50 lakh temporary jobs in logistics, packaging, transport, and retail. Rural and semi-urban India contributed 28% of total sales, underscoring deeper market penetration beyond metros. “The non-corporate sector — over nine crore small businesses — remains India’s true growth engine,” said Khandelwal.

Based on its findings, CAIT recommended steps to simplify GST compliance, expand credit access for small traders, and develop logistics hubs in Tier 2 and 3 cities. It also urged the government to promote low-MDR digital payments, upgrade market infrastructure, and sustain Swadeshi campaigns through coordinated trade–government messaging.