India’s retail sector recorded its highest-ever festive turnover during Diwali 2025, with total trade in goods and services surpassing the Rs 6 lakh crore mark. According to a nationwide survey conducted by the Confederation of All India Traders (CAIT), the total trade was recorded at ₹6.05 lakh crore, including Rs 5.40 lakh crore in goods and Rs 65,000 crore in services. This monumental achievement reflects a remarkable 25% rise compared to the previous year’s festive sales of Rs 4.25 lakh crore.
The CAIT survey, conducted by its research arm across 60 major distribution centers, including Tier 1, Tier 2, and Tier 3 cities, credits this record-breaking performance to a powerful combination of consumer confidence, government policy, and national sentiment.
Swadeshi Spirit and Policy Impact
A major driver of the historic sales figure was the deepening impact of the ‘Swadeshi’ and ‘Vocal for Local’ movements. The data shows that 87% of consumers preferred Indian-made goods over imported items, leading to a sharp decline in demand for Chinese products across all major markets. Sales of Indian-manufactured goods surged by an average of 25% compared to 2024.
Praveen Khandelwal, CAIT Secretary General and Member of Parliament, affirmed the economic significance of this trend: “These figures demonstrate that the Swadeshi sentiment is no longer just emotional — it is now a powerful economic force driving Aatmanirbhar Bharat.”
Another key factor was the impact of recent government policies. Nearly 72% of traders surveyed attributed higher sales volumes directly to the GST rate rationalization on key consumer categories such as garments, footwear, confectionery, home décor, and consumer durables. Consumers expressed greater satisfaction with stable pricing and lower tax burdens, which encouraged sustained festive spending.
Sectoral Growth and Economic Ripple Effect
The consumption boom was broad-based, with traditional non-corporate retail markets contributing nearly 85% of the total trade, signaling a powerful comeback for India’s physical marketplaces.
Sector-wise, the largest contributors to total sales were:
- Gold and Jewellery at 10%.
- Electronics and Electrical Items at 8%.
The service sector added Rs 65,000 crore to the overall festive economy through activities like packaging, hospitality, transport, event management, and delivery services, demonstrating a strong multiplier effect. This trade boom generated nearly 50 lakh temporary jobs in logistics, packaging, and transportation. Furthermore, rural and semi-urban India contributed nearly 28% of the total sales, proving that consumption growth is now truly inclusive and pan-India.
The buoyant sentiment is reflected in the confidence indices, with the Trader Confidence Index rising to 8.6 (from 7.8 last year) and the Consumer Confidence Index reaching 8.4. This historic Diwali trade is seen as a testimony to the resilience of India’s retail sector and a reaffirmation of the vision that, under Prime Minister Modi’s leadership, India’s festivals are becoming festivals of growth, merging tradition with transformation.
