CAIT survey finds Rs 5.40 lakh crore in Diwali 2025 sales, with 85 per cent from offline retail and rising demand for Indian-made products
India’s festive retail sales during Diwali 2025 rose 25 per cent year-on-year to Rs 5.40 lakh crore, the highest recorded festive turnover, according to a nationwide survey by the Confederation of All India Traders (CAIT). Brick-and-mortar stores accounted for about 85 per cent of the total sales, suggesting that physical retail remains dominant despite the growth of ecommerce.
CAIT attributed the increase in spending to a combination of GST rate rationalisation and a stronger consumer preference for locally made products. According to the report, 72 per cent of traders said their sales rose following lower GST rates on consumer goods such as footwear, ready-made garments, confectionery, and household items.
Spending was broad-based across product categories. Gold and jewellery made up 10 per cent of total Diwali sales, followed by grocery and FMCG (12 per cent), electronics and electricals (8 per cent), and consumer durables (7 per cent). Other major contributors included ready-made garments (7 per cent), gift items (7 per cent), home decor (5 per cent), sweets and namkeen (5 per cent), and furnishings (5 per cent). Smaller shares came from pooja articles, dry fruits, and confectionery.
The report noted that 87 per cent of consumers preferred Indian-made products over imported ones, with demand for Chinese goods declining across most markets. This shift, CAIT said, reflected a continued response to the government’s “Vocal for Local” appeal.
The survey showed higher consumer and trader confidence this year. The Trader Confidence Index rose to 8.6, up from 7.8 in 2024, while the Consumer Confidence Index was recorded at 8.4. Respondents cited price stability and moderate inflation as supporting factors.
Rural and semi-urban markets contributed about 28 per cent of total festive sales, indicating wider participation beyond metropolitan areas.
The report estimated that the Diwali trade generated temporary employment for nearly 50 lakh people, mainly in logistics, packaging, delivery, and retail support. The service sector added an estimated Rs 65,000 crore in business from hospitality, travel, event management, and related activities.
CAIT recommended policy measures to build on the festive momentum, including simpler GST compliance for small businesses, improved access to credit, expansion of logistics and warehousing in smaller cities, and continued promotion of domestic goods.
