India's Diwali Trade Reaches Historic Highs in 2025

India celebrated a record-breaking Diwali season in 2025, with retail trade soaring to Rs 5.40 lakh crore in goods and Rs 65,000 crore in services. A significant 25% growth from 2024, driven by GST adjustments and the 'Vocal for Local' initiative, highlighted increased consumer spending and market confidence.

In an unprecedented festive season, India's Diwali sales soared to a record-breaking Rs 5.40 lakh crore in goods and Rs 65,000 crore in services, marking the highest-ever turnover in the nation's retail history. A comprehensive survey by the Confederation of All India Traders (CAIT) revealed a remarkable 25% surge compared to 2024's numbers.

The CAIT Research & Trade Development Society spearheaded a nationwide survey across 60 major distribution centers, capturing data from Tier 1, Tier 2, and Tier 3 cities during the festive period from Navratri to Diwali. The study assessed sales trends, consumer behavior, and economic impacts, crediting the rationalization of GST rates and the government's 'Vocal for Local' campaign as pivotal factors in the surge.

Prime Minister Narendra Modi was portrayed as a significant advocate for GST relief and indigenous production, with his call to buy local resonating deeply among traders and consumers alike. The survey indicated that 87% of consumers preferred homemade products, leading to a notable decline in demand for Chinese imports as domestic manufacturers experienced a sales boost exceeding 25%.

Traditional retail channels witnessed a resurgence, with brick-and-mortar stores accounting for 85% of Diwali trade. Key segments like gold and jewellery, grocery and FMCG, electronics, and consumer durables showed robust growth. Services related to packaging, travel, and hospitality also flourished, contributing Rs 65,000 crore to the holiday economy.

The upbeat market sentiment was evident in the rise of the Trader Confidence Index to 8.6 and the Consumer Confidence Index to 8.4, reflecting optimism about economic stability and spending power. Traders attributed this boom to GST adjustments and favorable economic conditions, with the festive season creating nearly 50 lakh temporary jobs and witnessing significant participation from rural and semi-urban markets.

Overall, this year's Diwali trade has set a new benchmark, reflecting the strength of India's retail economy supported by nine crore small traders and numerous small manufacturers, laying the groundwork for continued growth.

(With inputs from agencies.)