Festive trading is at its greatest level ever because to Swadeshi mood and the rationalization of the GST; small dealers control the majority of the market.
According to the Confederation of All India Traders (CAIT), India had record-breaking Diwali sales this year, with total festive commerce reaching Rs 6.05 lakh crore, consisting of Rs 65,000 crore in services and Rs 5.40 lakh crore in products. In its extensive “Research Report on Diwali Festival Sales 2025,” the CAIT Research & Trade Development Society published statistics from a countrywide study of 60 significant distribution centers, including state capitals and Tier 2 and Tier 3 cities.
Praveen Khandelwal, the CAIT Secretary General and MP for Chandni Chowk in Delhi, said the sale demonstrates how the adoption of Swadeshi and the rationalization of the GST have motivated both the trade community and consumers.
He pointed out that the public responded strongly to “Vocal for Local” and “Swadeshi Diwali,” with 87 percent of buyers preferring Indian-made goods over imported ones, which resulted in a steep drop in demand for Chinese goods. Compared to the previous year, traders reported a 25 percent increase in sales of items made in India.
According to Khandelwal, Diwali 2025 trade numbers show a 25% increase over the Rs 4.25 lakh crore sales of the previous year. Mainline retail, especially non-corporate and traditional marketplaces, accounted for 85% of overall commerce, indicating a significant resurgence of small merchants and physical markets.
Composition of revenues by sector and development of services
According to CAIT National President B C Bhartia, the supermarket and fast-moving consumer goods (FMCG) sectors contributed for 12 percent of total sales, with gold and jewelry (10 percent), electronics and electricals (8 percent), consumer durables (7 percent), ready-made clothing (7 percent), and gift products (7 percent) following closely behind. Miscellaneous items accounted for 19 percent of the total trade, while other significant categories included home furnishings and décor (10 percent combined), sweets and namkeen (5 percent), textiles and fabrics (4 percent), pooja articles (3 percent), fruits and dry fruits (3 percent), bakery and confectionery (3 percent), and footwear (2 percent).
Together with retail trade, he said, the services sector—which includes packaging, hospitality, taxi services, travel, event management, tent and decoration, labor, and delivery—generated an estimated Rs 65,000 crore, demonstrating the festive economy’s impact on a number of industries.
Positive consumer sentiment and an increase in employment
Seventy-two percent of the merchants polled said that lower GST rates on consumer durables, footwear, clothing, confections, home décor, and everyday products were responsible for increased sales volumes. Additionally, consumers were more satisfied with consistent prices, which promoted continued holiday buying.
The Consumer Confidence Index (CCI) was 8.4 out of 10, and the Trader Confidence Index (TCI) was 8.6 out of 10, reflecting the highest levels of consumer and trader mood in a decade. Because of steady inflation, rising disposable income, and confidence in the national economy, merchants and consumers alike think that the trend of increasing spending is sustainable.
With over nine crore small enterprises and millions of industrial units, the non-corporate, non-agricultural sector remains the primary driver of India’s development, according to Khandelwal. According to him, the Diwali 2025 trade generated 50 lakh temporary jobs in retail, packaging, transportation, and logistics. Rural and semi-urban India contributed for 28 percent of overall commerce, demonstrating greater economic engagement outside metros.
Suggestions for dealers’ policies
According to Khandelwal, the research report’s recommendations from CAIT include streamlining GST compliance, improving small business and manufacturer credit access, creating logistics and warehousing hubs in Tier 2 and Tier 3 cities, encouraging low-MDR digital payments and markets, and fortifying urban market infrastructure like parking and traffic. Through coordinated trade-government messaging, the group also called for the ongoing promotion of “Swadeshi.”
The retail trade sector in India has established itself as the foundation of Aatmanirbhar Bharat, signifying the combination of tradition, technology, and trust, he said. “This year’s Diwali has been historic – a celebration of prosperity, nationalism, and economic confidence,” he said.