Festive cheer: India records historic Rs 5.4 lakh crore Diwali trade; services add Rs 65,000 crore boost

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 India records historic Rs 5.4 lakh crore Diwali trade; services add Rs 65,000 crore boost

India’s retail sector witnessed its highest-ever festive season sales this year, with Diwali trade reaching an unprecedented Rs 5.40 lakh crore in goods and Rs 65,000 crore in services, as per a nationwide survey by the Confederation of All India Traders (CAIT). The figures reflect a 25 per cent rise from 2024’s Rs 4.25 lakh crore turnover, underscoring the strong rebound in consumer spending and retail activity during the 2025 festive season, reported news agency ANI.The survey, conducted by the CAIT Research & Trade Development Society across 60 major distribution centres between Navratri (September 29) and Diwali (October 20) across Tier 1, Tier 2, and Tier 3 cities, assessed sales trends, consumer sentiment, and the effect of GST rationalisation and the government’s ‘Vocal for Local’ campaign. CAIT credited the record-breaking performance to lower GST rates on key consumer goods and the widespread adoption of Swadeshi products.According to ANI, the report described Prime Minister Narendra Modi as a “brand ambassador” for GST relief and Indian-made products, noting that his call to buy local goods resonated across the country. Nearly 87 per cent of consumers surveyed preferred Indian products over imported ones, leading to a steep decline in demand for Chinese goods.

Indian manufacturers’ sales jumped by over 25 per cent compared to last year, reflecting growing momentum under the government’s Aatmanirbhar Bharat initiative. Traditional brick-and-mortar stores accounted for nearly 85 per cent of total festive trade. Gold and jewellery made up around 10 per cent of sales, followed by grocery and FMCG (12 per cent), electronics (8 per cent), and consumer durables (7 per cent). Sectors like apparel, home décor, furnishings, and sweets also registered strong double-digit growth.The service industry, including packaging, logistics, hospitality, travel, event management, and delivery networks, added another Rs 65,000 crore to the overall festive business, helping generate close to 50 lakh temporary jobs. The report said rural and semi-urban areas contributed nearly 28 per cent of sales, signalling growing market penetration beyond metros.Market optimism surged, with the Trader Confidence Index (TCI) rising to 8.6 from 7.8 in 2024, and the Consumer Confidence Index (CCI) improving to 8.4. Traders attributed the surge to stable prices, moderate inflation, and rationalised GST rates that enhanced purchasing power.As per ANI, jewellery markets too saw record demand during Dhanteras, with the All India Gem and Jewellery Domestic Council estimating sales worth Rs 85,000 crore over two days. With festive buying continuing through Diwali and Bhai Dooj, the total jewellery market value is projected to touch Rs 1–1.35 lakh crore.CAIT noted that the 2025 festive season has set a new benchmark for India’s retail economy, powered by nearly nine crore small traders and local manufacturers forming the core of the non-corporate sector.

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