India's Diwali sales have soared to an all-time high of Rs 5.4 lakh crore, driven by a combination of "Swadeshi" sentiment and the positive impact of Goods and Services Tax (GST) reforms. This marks the highest-ever turnover recorded during the festive period in the country's retail and trading history. The Confederation of All India Traders (CAIT) Research and Trade Development Society reports a 25% increase in sales between Navratri and Diwali, compared to Rs 4.25 lakh crore last year. In addition to the sales of goods, services also saw a boost of approximately Rs 65,000 crore.
The surge in sales is attributed to several factors, including reduced GST rates on key consumer and retail items such as confectionery, footwear, home decor, ready-made garments, consumer durables, and products for daily use. These lower rates improved price competitiveness, fueling consumer demand. Approximately 72% of traders surveyed reported higher sales volumes directly linked to the lower GST. Consumers also welcomed stable prices, which sustained purchasing momentum throughout the Diwali season. The GST rationalization has created a positive consumer sentiment, enabling the middle class to increase their spending.
Adding to the economic boost is the growing "Swadeshi" sentiment, with Prime Minister Narendra Modi urging citizens to be "Vocal for Local" and celebrate with Indian-made products. This call appears to have resonated deeply, with 87% of consumers preferring Indian-made goods, leading to a decline in demand for Chinese products. The sales of Indian-manufactured products have surged by 25% compared to the previous year. This Diwali signifies a growing confidence in local artisans, markets, and people, with the festival becoming a celebration of "Swadeshi" pride.
The Diwali trade boom has also generated temporary employment for nearly 50 lakh people across various sectors, including logistics, transport, retail assistance, packaging, and delivery. Moreover, enhanced spending power in rural and semi-urban areas accounted for almost 28% of total sales, underscoring the broad economic reach beyond metropolitan centers. Mainline retail contributed nearly 85% of total sales, signaling a strong revival of brick-and-mortar stores.
Praveen Khandelwal, Secretary General of CAIT, highlighted Prime Minister Modi's role as a strong brand ambassador for GST rationalization and Swadeshi adoption. He noted that the Prime Minister's call for "Vocal for Local" and "Swadeshi Diwali" resonated deeply with consumers.
The record-breaking Diwali sales reflect India's economic strength and Swadeshi spirit. CAIT stated that Diwali 2025 has set a new benchmark in India's retail economy, reflecting the fusion of tradition, technology, and trust in Indian enterprise and marks a milestone in building an Aatmanirbhar Bharat.
