Diwali Sales Touch Historic High, GST Reforms & Strong Demand Fuel ₹5.40 Lakh Crore Festive Boom

New Delhi: Diwali 2025 proved to be a game-changer for India’s retail economy, with sales hitting an unprecedented Rs 5.40 lakh crore in goods and an additional Rs 65,000 crore in services, according to data released by the CAIT Research and Trade Development Society.

This 25 percent increase over 2024’s festive sales figure of Rs 4.25 lakh crore marks the highest-ever turnover during the Navratri to Diwali period, reshaping expectations for future festive seasons.

GST Reforms Power Purchase Momentum

A major contributor to this surge was the reduction in GST rates across key consumer categories. Lower taxes on products such as confectionery, ready-made garments, home decor, footwear, daily essentials, and consumer durables made goods more affordable, sparking widespread consumer enthusiasm. As many as 72 percent of surveyed traders linked their increased sales volumes directly to GST reductions.

This move not only boosted affordability but also revived footfall in physical retail stores, with mainline retail contributing 85 percent to total festive sales.

Rural and Semi-Urban India Fuel Expansion

Another striking feature of this Diwali season was the strong rural and semi-urban market participation, which contributed nearly 28 percent of overall sales. Enhanced purchasing power in these regions points to deeper economic penetration and rising aspirations beyond metro cities, a crucial element in India’s broader growth story.

Massive Job Creation and Economic Ripple Effect

The festive boom also had a significant impact on employment. Temporary hiring across logistics, packaging, delivery, retail assistance, and transportation saw a surge, generating an estimated 50 lakh temporary jobs during the Diwali season. This reinforces the growing role of India’s non-corporate, non-agricultural sector, comprising 9 crore small businesses and crores of micro-manufacturers, in driving employment and consumption.

A New Era for Indian Trade

Calling Diwali 2025 a “benchmark year”, the Confederation of All India Traders (CAIT) hailed the season as a reflection of "tradition, technology, and trust" working together to build a resilient, self-reliant India under the leadership of Prime Minister Narendra Modi.

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