Diwali Sales Hit Record ₹6.05 Lakh Crore: CAIT Report

Diwali Sales Hit Record ₹6.05 Lakh Crore: CAIT Report

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India witnessed record-breaking Diwali sales this October 2025, as the Confederation of All India Traders (CAIT) reported business worth ₹6.05 lakh crore. The festival season sparked massive consumer enthusiasm across markets. Traders experienced overwhelming demand for gifts, electronics, apparel, and festive goods.

Key Highlights from the Confederation of All India Traders (CAIT) “Research Report on Diwali Festival Sales 2025”

• The CAIT report shows that the total festive trade during Diwali 2025 reached ₹ 6.05 lakh crore, with goods contributing approximately ₹ 5.40 lakh crore and services about ₹ 65,000 crore. This figure marks a strong increase of ~25 % compared to the previous year’s total of ~₹ 4.25 lakh crore.
• According to the survey data covering 60 major distribution centres spanning metros, state capitals, Tier 2 and Tier 3 cities, the share of non-corporate physical retail markets was estimated to be about 85 % of the total trade. Rural and semi-urban regions together contributed around 28 % of the total sales.
• The data suggests that 87 % of consumers preferred Indian-made products over imports during the festival period. Sales of Indian-manufactured goods grew by about 25 % compared to last year. 
• The breakdown of goods sold across different product categories reveals the following shares: Grocery and FMCG – 12 %, Gold & Jewellery – 10 %, Electronics & Electricals – 8 %, Consumer Durables – 7 %, Garments – 7 %, Gifts – 7 %, Home Décor & Furniture – 5 % each, Sweets & Namkeen – 5 %. Miscellaneous items made up 19 % of the goods trade. 
• In the services sector, segments such as packaging, logistics, travel, hospitality, event management and delivery together produced an estimated ₹ 65,000 crore, creating 50 lakh temporary jobs uplift during the Diwali period.
• Trader and consumer confidence recorded decade-high levels, with the “Trader Confidence Index” (TCI) at around 8.6 out of 10, and the “Consumer Confidence Index” (CCI) at about 8.4 out of 10.

Reasons Behind the Record Diwali Sales 2025

• Strong Consumer Confidence: In 2025, India witnessed a sharp rise in consumer confidence, backed by stable inflation and higher disposable incomes. According to the Reserve Bank of India’s Consumer Confidence Survey (September 2025), the index improved to 92 points, the highest in three years. The rise in rural incomes and increased government focus on employment generation contributed to higher spending across all income groups.

• “Vocal for Local” Campaign: A major factor behind this year’s record sale was the growing preference for Indian-made products. CAIT data shows that 87 percent of buyers chose local goods over imported ones during Diwali 2025. This trend reflects the success of the government’s ongoing “Vocal for Local” initiative launched in 2020 to promote indigenous industries. The increased trust in local brands and improved product quality helped Indian manufacturers capture a larger market share.

• Tax Rationalisation Measures: The government’s consistent GST rationalisation and policy measures played a vital role in driving festive sales. Between 2023 and 2025, the GST Council reduced rates on several mass-consumption goods such as footwear, household appliances, and packaged foods. This made high-demand items like home décor, small electronics, and gift goods more accessible to middle-income families.

• Digital Commerce Integration: The 2025 festive season saw the strongest integration between offline markets and digital commerce in India’s retail history. Hybrid retailing—where traders used online payment systems and social media marketing—expanded business reach. According to industry estimates, digital payment transactions grew during the Diwali week compared to 2024.

• Local Market Ecosystems: Post-pandemic recovery and supportive credit schemes revived micro, small, and medium enterprises (MSMEs) across India. By 2025, more than 1.2 crore small traders had gained access to institutional credit, enabling them to increase inventory for the festive season. Local markets, especially in Tier 2 and Tier 3 cities, recorded heavy footfall, supported by better infrastructure and marketing. 

Government Policies to Support Market Growth

• Pradhan Mantri Mudra Yojana (PMMY): The Pradhan Mantri Mudra Yojana (PMMY) launched in 2015 has played a major role in boosting small business growth. Under this scheme, micro and small traders can access collateral-free loans up to ₹10 lakh from banks and financial institutions. The scheme has improved liquidity in local markets and encouraged entrepreneurship in Tier 2 and Tier 3 cities.

• Emergency Credit Line Guarantee Scheme (ECLGS): The Emergency Credit Line Guarantee Scheme (ECLGS) introduced in 2020 during the pandemic provided a major boost to small traders and service providers. The scheme offered government-backed loans to businesses affected by lockdowns and reduced sales. The scheme helped more than 1.2 crore MSMEs stay operational during a difficult economic phase.

• PM Vishwakarma Yojana: The PM Vishwakarma Yojana, launched in September 2023, aims to support traditional artisans and craftsmen across 18 trades such as carpentry, blacksmithing, tailoring, and goldsmithing. The government allocated ₹13,000 crore for this scheme up to FY2028. Each registered Vishwakarma worker receives training, toolkits, and collateral-free credit of up to ₹3 lakh at low interest. 

• Digital India Mission: The Digital India mission, launched in 2015, has transformed the retail sector through technology-driven inclusion. The rapid rise of Unified Payments Interface (UPI) and digital banking has made transactions faster and safer. As per the National Payments Corporation of India (NPCI), UPI processed over 19.63 billion transactions in September 2025, amounting to ₹24.90 lakh crore in value. 

• Make in India: The Make in India programme, launched in 2014, continues to strengthen domestic manufacturing and reduce import dependence. It has encouraged both small and medium industries to produce goods locally. Between 2014 and 2025, India’s manufacturing sector contribution to GDP increased from 15.6 percent to nearly 18 percent. Complementing this, the Start-Up India scheme launched in 2016 has created jobs and boosted innovation in retail, logistics, and e-commerce.

• PM Gati Shakti: The PM Gati Shakti National Master Plan, introduced in October 2021, focuses on improving logistics, infrastructure, and market connectivity. It integrates 16 ministries to plan and execute transport and supply-chain projects through a single digital platform. In 2025, over 600 projects worth ₹11 lakh crore had been approved under Gati Shakti. Better road, rail, and port infrastructure has reduced delivery times for goods and lowered transport costs by nearly 10 percent, according to government data.

Significance of Record Diwali Sales 2025

• Indicator of Strong Economic Recovery: The record Diwali sales reflects improved consumer confidence and higher purchasing power across both urban and rural areas. According to government data, India’s GDP growth for FY 2024-25 is projected at 7.2 percent, one of the fastest among major economies. This trend confirms that India’s economic fundamentals are stable and that household spending continues to sustain national growth momentum.

• Strengthening of Domestic Trade: The sales report highlights a clear preference for Indian-made products. This supports the government’s Atmanirbhar Bharat initiatives. Increased demand for local goods reduces import dependency and encourages production within the country. This strengthens India’s manufacturing base, supports MSMEs, and builds self-reliance in consumer goods.

• Reflection of Social Optimism: Diwali, a festival associated with prosperity and renewal, encourages people to spend confidently after years of uncertainty. The massive participation across states symbolised unity, optimism, and social resilience. The blending of tradition with modern market systems shows India’s ability to turn cultural strength into economic opportunity.