Diwali 2026 shopping boom: Indians set to spend $16 billion online as festive sales jump 25%

India's festive shopping season is witnessing a major surge, with online sales expected to climb 25% to as much as $16 billion (approximately ₹1.4 lakh crore) ahead of Diwali 2026. The projected growth, the fastest in five years, highlights the expanding scale of India's e-commerce market and growing consumer appetite for festive purchases.

According to a Bloomberg report citing Redseer Strategy Consultants, online sales during the run-up to Diwali are expected to rise approximately 25% this year, reflecting strong momentum in India's digital retail ecosystem.

The projections come as millions of Indian households prepare for Diwali on November 8, traditionally one of the country's biggest shopping occasions.

The festival drives purchases across categories, including jewellery, clothing, electronics, home furnishings, gifts and sweets, as consumers prepare for family gatherings and celebrations.

Festive shopping could touch ₹1.4 lakh crore

The projected $16-billion online sales figure underscores the growing importance of digital platforms in India's festive retail market.

A 25% increase would mark the fastest growth in five years, according to Redseer, suggesting a significant acceleration in online festive spending.

The expansion also highlights how online marketplaces have become an important part of India's consumption economy, particularly during major festivals.

Discount campaigns, festive promotions, convenient payment options and expanding delivery networks have helped make digital shopping increasingly accessible.

However, the $16-billion estimate represents projected online sales during the festive run-up, rather than spending on Diwali day alone.

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Luxury gifting gains popularity

Beyond conventional shopping, premium gifting is emerging as a prominent feature of festive consumption.

Bloomberg's Diwali gift guide highlights products ranging from handcrafted home accessories and premium sweets to designer handbags, gold coins and luxury furnishings.

Among the featured products is Khoya's Gold Pista Katli, priced at ₹21,000 for 30 pieces. Each sweet is decorated with edible 24-karat gold leaf, translating into a price of ₹700 per piece.

Tanishq's 2-gram, 24-karat Lakshmi-Ganesha gold coin is listed at ₹31,702, while a handcrafted Savana rug from Jaipur Rugs costs ₹3,45,450.

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Other premium gifting options include a ₹18,995 leather poker box, a ₹30,000 decorative candle stand and a ₹72,500 designer clutch.

These offerings illustrate how brands are positioning traditional festive products within the luxury segment.

What is driving festive demand?

Diwali shopping extends beyond personal purchases to gifting, home decoration and social gatherings.

The tradition of buying new products during the festival, considered auspicious by many households, provides retailers with an important seasonal sales opportunity.

Premium products also allow brands to target affluent consumers seeking distinctive gifts and experiences.

However, the Bloomberg report does not provide category-wise sales projections or data showing how much premium products contribute to overall e-commerce growth.

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What does the spending surge mean?

The projected 25% increase signals robust festive demand and growing digital retail activity.

For retailers, the season offers opportunities to attract customers, expand sales and strengthen brand visibility.

For consumers, however, attractive festive offers also underline the importance of comparing prices and avoiding unnecessary borrowing.

While premium gifting is attracting attention, the broader significance lies in the scale of India's online shopping economy, with festive sales potentially reaching $16 billion this year.

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