Diwali 2025 brought not just lights and celebration but also a historic economic surge. According to the Confederation of All India Traders (CAIT), India’s total festive season sales touched an unprecedented Rs6.05 lakh crore, setting a new all-time record for retail and services turnover.
Out of this, Rs5.40 lakh crore came from goods sales, while Rs65,000 crore was generated by the services sector — marking a staggering 25% jump compared to last year’s Rs4.25 lakh crore.
‘Vocal for Local’ Becomes the Festival Mantra
CAIT National Secretary Praveen Khandelwal credited the phenomenal performance to Prime Minister Narendra Modi’s “Vocal for Local” and “Swadeshi Diwali” initiatives.
The campaign struck a powerful chord with consumers — 87% of buyers chose Indian-made products, while the demand for Chinese goods plunged sharply. Retailers witnessed 25% higher sales of Indian brands compared to last year, indicating a strong shift toward economic nationalism and local empowerment.
Sector-Wise Highlights: FMCG, Gold, and Gadgets Shine Bright
India’s festive economy saw remarkable performance across multiple segments:
Sector Share (%)
FMCG & Groceries 12
Gold & Silver 10
Electronics & Electricals. 8
Consumer Durables 7
Ready-made Garments 7
Gift Items 7
Home Décor & Furniture 10
Sweets, Fruits & Dry Fruits. 8
Apparel & Footwear 6
Puja Essentials. 3
Miscellaneous 19
Services Sector Adds Glitter to the Festive Economy
The services segment contributed Rs65,000 crore, powered by high demand in travel, hospitality, event management, packaging, tenting, manpower, and delivery services.
The expansion indicates that India’s festive economy is no longer limited to retail, but has transformed into a comprehensive ecosystem driving growth across industries.
GST Rationalization and Economic Confidence Fuel Demand
Khandelwal noted that GST rate rationalization and stable pricing played crucial roles in boosting consumer confidence.
A recent CAIT survey found that 72% of traders credited GST reforms as a key reason for the surge in sales.
The Trade Confidence Index (TCI) reached 8.6/10, while the Consumer Confidence Index (CCI) hit 8.4/10 — both the highest in a decade, signaling robust optimism among traders and buyers alike.
Rural India Emerges as a Growth Driver
The festive boom wasn’t confined to cities. Rural and semi-urban regions accounted for 28% of total sales, reflecting India’s deepening economic inclusion.
The season also generated 5 million temporary jobs, largely supported by non-corporate, small traders, and MSMEs, reaffirming their role as India’s true economic backbone.
CAIT’s Policy Recommendations
●To sustain the festive momentum, CAIT has urged policymakers to:
●Simplify GST procedures for small businesses
●Enhance credit access and logistics infrastructure in Tier-2 and Tier-3 cities
●Promote digital payments by removing banking commissions
●Improve urban traffic, parking, and encroachment management
●Strengthen the “Swadeshi” campaign through public-private collaboration
The Bigger Picture
Diwali 2025’s record-breaking numbers highlight India’s growing domestic strength, consumer confidence, and commitment to local manufacturing.
Beyond bright lights and celebrations, this year’s Diwali stands as a symbol of self-reliance, economic resilience, and the power of ‘Made in India’ — proving that when the country shops local, the entire economy shines.
