Diwali sales in 2025 touched a record Rs 6.05 lakh crore led by GST rate cuts and strong demand for local or ‘swadeshi’ products, traders’ body CAIT said on Tuesday, adding this was the highest-ever in India’s trading history. This year’s Diwali sales, which was 25% higher than last year, included Rs 5.4 lakh crore in goods and Rs 65,000 crore in services.
Almost 85% of the total trade in 2025 came from physical markets and smaller traders, CAIT said, marking a comeback for traditional trade that has seen a slowdown in recent years due to the rise of e-commerce and quick commerce. Rural and semi-urban India accounted for 28% of total trade, confirming deeper economic participation beyond metros, the body added.
“Prime Minister Narendra Modi’s call for ‘Vocal for Local’ and ‘Swadeshi Diwali’ resonated deeply with the public — 87% of consumers preferred Indian-made goods over imported products. There was a sharp decline in demand for Chinese items this Diwali,” Praveen Khandelwal, secretary general, CAIT, said. He added that alongside retail trade, the services sector such as packaging, hospitality, cab services, travel, event management, tent and decoration, manpower, and delivery services contributed to the growth seen this year, reflecting the ripple effect of the festive economy across multiple categories.
Khandelwal also claimed that around 5 million temporary jobs were generated during the festive season in various sectors such as logistics, packaging, transport, and retail services.
Among sectors, fast-moving consumer goods (FMCG) accounted for the largest share of total sales at 12%, followed by gold & jewellery and home decor & furnishings at 10% each, electronics & electricals at 8%, and consumer durables, ready-made garments, and gift items each at 7%. Other categories included sweets and namkeen (5%), textiles and fabrics (4%), pooja articles, fruits and dry fruits, bakery and confectionery (all 3%), and footwear (2%).
The data, released Tuesday, was based on a nationwide survey across 60 distribution centres, including state capitals and Tier 2 and Tier 3 cities.
Almost 72% of traders surveyed said that higher sales during Diwali was due to lower GST on daily-use items. Last month, the Centre had reduced GST on most FMCG items to a two-rate structure of 5% and 18% versus a four-rate structure earlier.
CAIT also said that trader and consumer confidence was high during the festive season this year, with the Trader Confidence Index at 8.6 on a scale of 10. While the Consumer Confidence Index was 8.4 on a scale of 10. The traders body also said that the consumption trends visible during the festive season would likely continue in the future, supported by stable inflation, higher disposable incomes and confidence in the national economy.
It further recommended simplifying GST compliance, improving credit access for small traders and manufacturers, and developing logistics and warehousing hubs in Tier 2 and 3 cities, among other measures to support further sales growth.