India’s traders and retailers have much to celebrate this festive season. The Confederation of All India Traders (CAIT) announced that Diwali 2025 generated a record-breaking ₹5.4 lakh crore in goods trade, alongside ₹65,000 crore in services — marking the most prosperous festival season in the country’s recent history.
Consumer confidence back with a bang
According to CAIT, sales across categories — including electronics, jewellery, fashion, home décor, and sweets — saw an unprecedented 22% jump compared to last year. “The festival season has revived India’s retail energy,” said Praveen Khandelwal, CAIT’s National Secretary-General. “From small traders to large brands, everyone witnessed footfall like never before.”
Markets across Delhi, Mumbai, Ahmedabad, Jaipur, and Lucknow were brimming with shoppers, with retailers reporting that consumer sentiment has reached pre-pandemic highs.
E-commerce and offline synergy
Interestingly, both online and offline platforms benefited equally. Amazon, Flipkart, and Meesho reported strong sales, while local markets saw record physical turnout. Experts believe this hybrid shopping pattern will define India’s future retail landscape.
“Indians have embraced both traditional shopping and digital convenience,” said economist Ritu Arora, noting that even Tier-2 cities contributed significantly to total sales.
What drove the record sales?
Stable inflation and rising incomes gave consumers more spending power.
Aggressive festive discounts and easy EMIs attracted young buyers.
Sentimental value of Diwali — especially post-pandemic — boosted gifting and social gatherings.
‘Vocal for Local’ campaigns encouraged buyers to support Indian-made goods.
Economic impact
The trade surge adds momentum to India’s GDP outlook for Q4 2025. Analysts project that retail growth will contribute nearly 0.6% to overall GDP this quarter.
“A ₹6 lakh crore-plus Diwali trade is more than just business; it’s a statement of national economic resilience,” said financial expert Ajay Bagga.
Looking ahead
With the festive season continuing through Govardhan Puja and Bhai Dooj, retailers expect another ₹1 lakh crore in additional trade. The government may also witness an indirect boost in GST collection and manufacturing output.
