India’s retail sector marked a historic high this Diwali, with total festive trade touching Rs 5.4 lakh crore in goods and an additional Rs 65,000 crore in services,
reflecting a 25% surge over last year’s Rs 4.25 lakh crore turnover. According to a nationwide survey by the Confederation of All India Traders (CAIT), the record-breaking numbers were driven by lower GST rates, a strong ‘Vocal for Local’ push, and robust consumer confidence across Tier 1 to Tier 3 cities. The survey found that 87% of consumers preferred Indian-made products, leading to a steep decline in demand for imported, particularly Chinese, goods. Indian manufacturers reported a 25% jump in sales, reflecting the continued success of the Aatmanirbhar Bharat initiative. Traditional brick-and-mortar stores accounted for 85% of total festive sales, with gold and jewellery (10%), FMCG (12%), electronics (8%), and consumer durables (7%) among the top-performing categories. The service sector, including logistics, travel, packaging, and hospitality, added Rs 65,000 crore to the festive economy and helped generate nearly 50 lakh temporary jobs. The Trader Confidence Index rose to 8.6 from 7.8 in 2024, while the Consumer Confidence Index climbed to 8.4, reflecting improved optimism amid stable prices and moderate inflation. Jewellery markets also witnessed record-breaking demand, with Dhanteras sales estimated at Rs 85,000 crore over two days. Total jewellery turnover through Diwali and Bhai Dooj is projected to reach Rs 1–1.35 lakh crore. CAIT noted that the 2025 festive season has set a new benchmark for India’s retail economy, powered by nearly nine crore small traders and local manufacturers, reaffirming the strength of India’s non-corporate retail sector.
