India Records Its Biggest Festive Sale in History: ₹6 Lakh Crore Business During Diwali, Chinese Goods Lose Demand
New Delhi (The Uttam Hindu): The Confederation of All India Traders (CAIT), through its research wing CAIT Research & Trade Development Society, has released its “Comprehensive Diwali Festival Sales 2025” report. Based on surveys conducted across 60 major distribution centers including state capitals and Tier-2 and Tier-3 cities the report revealed that total Diwali sales in India reached ₹6.05 lakh crore this year. This includes ₹5.40 lakh crore in goods trade and ₹65,000 crore in services marking the largest festive business in India’s trade history.
Indian Products Dominate, Chinese Goods See Sharp Decline
Member of Parliament from Chandni Chowk and CAIT National General Secretary Praveen Khandelwal stated that Prime Minister Narendra Modi’s campaigns “Vocal for Local” and “Swadeshi Diwali” had a major impact on consumer behavior. About 87% of consumers preferred Indian-made products over foreign goods, leading to a significant drop in demand for Chinese items. Compared to last year, sales of Indian-made goods increased by 25%.
Khandelwal added that the report shows PM Modi’s image as a “strong brand ambassador of indigenous products”, who inspired both traders and consumers. The “Swadeshi Diwali” appeal deeply resonated with people nationwide, causing Chinese imports to decline sharply while boosting local manufacturing and retail.
25% Growth Compared to Last Year
According to Khandelwal, Diwali 2025 sales rose 25% from last year’s ₹4.25 lakh crore figure. Non-corporate and traditional markets contributed nearly 85% of the total business, showcasing the remarkable revival of India’s retail and small-scale trade sector.
CAIT National President B.C. Bhartia shared detailed sector-wise data:
Kirana & FMCG: 12%
Gold & Silver: 10%
Electronics & Electricals: 8%
Consumer Durables: 7%
Ready-made Garments: 7%
Gift Items: 7%
Home Décor: 5%
Furnishings & Furniture: 5%
Sweets & Snacks: 5%
Textiles: 4%
Pooja Items: 3%
Fruits & Dry Fruits: 3%
Bakery & Confectionery: 3%
Footwear: 2%
Miscellaneous: 19%
Service Sector Also Sees a Boost
The service sector witnessed robust growth with a total business of ₹65,000 crore. Industries such as packaging, hospitality, taxi services, travel, event management, tents and décor, manpower, and delivery saw a major rise in activity, expanding the overall festive economy.
Khandelwal said that rationalized GST rates played a key role in boosting consumer demand. About 72% of traders surveyed agreed that lower GST directly helped increase their sales. Consumers also expressed satisfaction with stable pricing, which kept festive spending consistent.
High Confidence Among Traders and Consumers
According to the report, Trader Confidence Index (TCI) reached 8.6/10, while the Consumer Confidence Index (CCI) stood at 8.4/10 — the highest in a decade. Experts believe this surge in consumption is sustainable, supported by controlled inflation, rising incomes, and strong trust in the national economy. The report further predicts that this momentum will continue through the winter, wedding, and upcoming festive season starting mid-January.
Employment and Economic Impact
Khandelwal stated that the non-corporate and non-agriculture sectors, including 9 crore small traders and thousands of manufacturing units, continue to drive India’s economic growth. The Diwali 2025 sales generated around 50 lakh temporary jobs. Rural and semi-urban areas contributed 28% to the total trade, showcasing economic empowerment beyond metros.
Based on the findings, CAIT has recommended several measures to the government — simplifying GST compliance for small traders, improving access to credit, establishing logistics and warehousing hubs in smaller cities, eliminating bank commission on digital payments, and strengthening traffic, parking, and encroachment management in urban markets. The organization also urged for continued joint promotion of the “Swadeshi” campaign by the government and the business community.