Festive boom! India's Diwali 2025 trade hits record ₹6.05 lakh cr on GST 2.0, Swadeshi push: CAIT survey

India has recorded an unprecedented ₹5.40 lakh crore in goods and ₹65,000 crore in services traded during the Diwali 2025 season, the highest festive turnover ever in the history of Indian retail, according to the nationwide survey conducted by the CAIT India Research & Trade Development Society.

The survey, covering 60 major markets and thousands of traders across Tier 1, 2 and 3 cities, confirms that amid the government’s call for ‘Swadeshi’, ‘Vocal for Local’, and measures like GST 2.0, India’s business ecosystem has seen renewed market confidence.

Compared to last year’s ₹4.25 lakh crore festive sales, the 2025 Diwali trade marked a 25 per cent rise, a clear reflection of stronger consumer sentiment, improved purchasing power, and the success of GST rate reductions across key categories such as garments, footwear, confectionery, and home décor, the CAIT statement said.

The data shows that 87% of consumers preferred Indian-made goods over imported items, while sales of Chinese products dropped sharply across cities. Indian manufacturers saw an average of 25% growth in sales compared to 2024.

CAIT said the trade boom has generated nearly 50 lakh temporary jobs in logistics, packaging, transportation, hospitality, and delivery services, giving a strong boost to small and medium enterprises. Rural and semi-urban India contributed nearly 28% of the total sales, proving that consumption growth is now truly inclusive and pan-India.

Trader Confidence Index, meanwhile, has also risen to 8.6 (from 7.8 last year) and Consumer Confidence Index to 8.4, underscoring optimism in India’s retail economy. CAIT said it reflects the success of policies that encourage entrepreneurship, simplify compliance, and sustain consumption beyond the festive season.

The CAIT Research & Trade Development Society, the research wing of the Confederation of All India Traders (CAIT), conducted an extensive pan-India survey across 60 major distribution centres representing Tier 1, Tier 2, and Tier 3 cities.

Key Findings of CAIT India Research & Trade Development Society:

Total Estimated Trade Volume

• ₹5.40 lakh crore worth of business was generated during the Diwali season 2025 in the retail trade of India conducted by the non-corporate, non-agriculture sector.

• Marks a 25% increase over 2024 festive sales (₹4.25 lakh crore).

• Mainline retail accounted for nearly 85% of total sales, indicating a strong revival of brick-and-mortar markets.

Impact of GST rate rationalisation

The reduction in GST rates across key consumer and retail categories, such as confectionery, home décor, footwear, ready-made garments, consumer durables, and daily-use items, has significantly improved price competitiveness and increased purchase momentum, according to CAIT data.

•72% of surveyed traders reported higher sales volumes directly attributable to reduced GST.

• Consumers expressed greater satisfaction with stable prices amid festive demand, aiding consumption continuity post-Diwali.

• Nearly 87% of consumers preferred Indian-made goods over imported items.

• A visible decline in demand for Chinese goods was reported across all survey cities.

•Traders noted that Indian manufacturers’ visibility and sales grew more than 25% compared to last year.

Trader & consumer sentiments

• Trader Confidence Index (TCI): 8.6/10 (up from 7.8 in 2024)

•Consumer Confidence Index (CCI): 8.4/10

The CAIT survey showed that consumers view their increased consumption as sustainable, supported by rising disposable incomes and moderate inflation, which will lead to an enhancement of purchasing power among consumers. “Traders expect this buoyancy to extend through the winter and wedding season this year, followed by another spell of festive season from mid-January,” it added.

Economic significance

• The non-corporate and non-agricultural sector has emerged as a central pillar of India’s growth, driven by 9 crore small businesses, crores of small manufacturing units and the largest base of consumers.

• The Diwali trade surge is estimated to have generated temporary employment for nearly 50 lakh people across logistics, transport, retail assistance, packaging, and delivery.

• Enhanced rural and semi-urban purchasing power contributed nearly 28% of overall sales, highlighting deep economic penetration beyond metros.