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Diwali Sales Hit Record Rs 5.40 Lakh Crore on GST Reforms

Diwali Sales Smash Records at Rs 5.40 Lakh Crore

India’s Diwali festival season generated a historic Rs 5.40 lakh crore in goods sales and approximately Rs 65,000 crore in services, marking the highest-ever retail turnover in the country’s trading history.

Key Takeaways

  • Total Diwali sales hit record Rs 5.40 lakh crore (goods) + Rs 65,000 crore (services)
  • 25% growth over previous year’s festive sales
  • Traditional retail dominated with 85% market share
  • GST reforms boosted consumer spending significantly

Unprecedented Growth in Festival Sales

The Confederation of All India Traders (CAIT) reported a 25% increase compared to 2024’s festive period sales of Rs 4.25 lakh crore. This surge demonstrates robust consumer confidence and economic momentum.

Traditional Retail Makes Strong Comeback

Mainline retail accounted for nearly 85% of total sales, indicating a powerful revival of brick-and-mortar markets across India. The survey shows consumers returning to physical stores in large numbers.

GST Reforms Fuel Consumer Spending

Reduced GST rates on key categories including confectionery, home decor, footwear, ready-made garments, and consumer durables significantly improved price competitiveness. About 72% of traders reported higher sales volumes directly linked to GST reductions.

Consumers expressed greater satisfaction with stable prices during the festive season, supporting continued consumption even after Diwali celebrations.

Employment and Rural Economy Boost

The Diwali trade surge generated temporary employment for approximately 50 lakh people across logistics, transport, retail assistance, packaging, and delivery sectors.

Enhanced rural and semi-urban purchasing power contributed 28% of overall sales, highlighting deep economic penetration beyond metropolitan areas.

“Diwali 2025 has set a new benchmark in India’s retail and trading economy – symbolising the fusion of tradition, technology, and trust in Indian enterprise,” said CAIT.

The organization noted this year’s Diwali stands as a major milestone in building an , driven by 9 crore small businesses and the country’s vast consumer base.

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