Diwali 2025 turned out to be India’s most prosperous festive season yet, with total sales touching a record ₹6.05 trillion (US$ 68.77 billion), according to the Confederation of All India Traders (CAIT). This represents a 25% year-on-year growth from last year’s ₹4.25 trillion, signaling strong consumer sentiment and a surge in domestic demand.
GST Cuts and Economic Confidence Power Growth
The report attributed this remarkable rise to recent reductions in GST rates, which lowered costs for daily-use goods and boosted affordability. Nearly 72% of traders credited the tax cuts for higher sales volumes. Stable inflation, improved disposable incomes, and growing confidence in India’s economic direction also played a major role in driving consumption across urban and rural regions alike.
‘Vocal for Local’ and the Shift Away from Imports
Prime Minister Narendra Modi’s ‘Vocal for Local’ and ‘Swadeshi Diwali’ campaigns struck a powerful chord this year, as 87% of consumers preferred Indian-made products over imported goods. The result was a sharp decline in demand for Chinese items and a 25% jump in sales of domestically manufactured products. This shift highlights a growing sense of national pride among consumers and a renewed focus on supporting local industries and MSMEs.
Sectoral Highlights and Employment Boost
The FMCG sector led with a 12% share of total sales, followed by gold and jewellery (10%), electronics (8%), and garments and gift items (7%). The festive rush also generated around 5 million temporary jobs across logistics, packaging, retail, and transport, providing a timely boost to the employment market.
The Trader Confidence Index (8.6/10) and Consumer Confidence Index (8.4/10) reflected strong optimism on both sides, suggesting that India’s consumption momentum is likely to continue well into 2026.
Building on the Festive Momentum
Experts recommend simplifying GST compliance, improving credit access for small traders, and developing logistics hubs in Tier-II and Tier-III cities to sustain growth. As India’s domestic market continues to expand, Diwali 2025 will be remembered as the turning point where local enterprise and consumer patriotism together powered a new phase of economic confidence.
Summary (60 words)
India’s Diwali 2025 sales touched a record ₹6.05 trillion, marking 25% growth over last year. The surge was driven by GST rate cuts, strong consumer confidence, and the success of the ‘Vocal for Local’ campaign, with 87% of shoppers choosing Indian-made goods. Rising domestic demand, job creation, and high trader optimism reflect India’s robust economic recovery.
