India's Diwali sales in 2025 reached an unprecedented Rs 6.05 lakh crore, marking a significant increase of 25% from last year's Rs 4.25 lakh crore. This surge was driven by reduced GST rates and a strong preference for local products, as reported by the Confederation of All India Traders (CAIT). The total sales comprised Rs 5.4 lakh crore in goods and Rs 65,000 crore in services, highlighting a robust festive economy.

CAIT's findings were based on a nationwide survey conducted across 60 distribution centres, including major cities and smaller towns. The report revealed that traditional markets and small traders accounted for 85% of the total trade, indicating a revival of physical retail amidst the growing e-commerce sector. Notably, rural and semi-urban areas contributed 28% of the total trade, showcasing broader economic engagement beyond metropolitan regions.

Praveen Khandelwal, CAIT's Secretary General, noted that Prime Minister Narendra Modi's initiatives like "Vocal for Local" resonated with consumers, with 87% opting for Indian-made products over imports, particularly from China. The festive season also saw a significant boost in the services sector, which added Rs 65,000 crore through various industries such as packaging, hospitality, and travel, generating around 5 million temporary jobs.

Among the top-performing categories, fast-moving consumer goods (FMCG) led with 12% of total sales, followed by gold and jewellery at 10%, and electronics at 8%. The report highlighted that 72% of traders attributed the sales increase to lower GST rates on essential items, which were simplified to a two-rate structure of 5% and 18%.

The positive sentiment was reflected in the Trader Confidence Index, which rose to 8.6, while the Consumer Confidence Index reached 8.4. CAIT anticipates that the consumption trends observed during Diwali will continue, supported by stable inflation and rising disposable incomes. The organisation also recommended measures to enhance GST compliance and improve access to credit for small traders to sustain this growth in the future.