Key Takeaways
- UPI hit a record ₹1.02 lakh crore in single-day transactions on October 18
- Diwali sales reached an all-time high of ₹6.05 lakh crore, up 25% from previous year
- 72% of traders reported higher sales directly due to GST rate cuts
- Mainline retail accounted for 85% of total sales, showing brick-and-mortar revival
India’s Unified Payments Interface (UPI) achieved a historic milestone on October 18, processing 754 million transactions worth ₹1.02 lakh crore – the highest single-day value recorded, Finance Minister Nirmala Sitharaman announced. The surge came as GST rate cuts boosted consumer spending during the festive season.
Festive Spending Momentum
During the three-day period between Dhanteras and Diwali, average UPI volumes reached 736.9 million transactions, significantly higher than the 647.46 million recorded in the corresponding period a month earlier. “It has been a cracker of a Diwali for retailers this year as GST rate cuts have boosted consumption, enabling the middle class to add more items to their shopping bags this festive season,” Sitharaman observed.
The Finance Minister noted that both mass and premium market segments showed strong growth, spanning from lab-grown diamonds to casual wear and home decoration products.
GST 2.0 Impact on Economy
Sitharaman emphasized that the rollout of Goods and Services Tax (GST) 2.0 has injected fresh momentum into India’s growth story by enhancing household purchasing power, easing business operations, and simplifying tax administration. “By rationalising slabs and lowering rates across a range of consumer goods, the reform has delivered tangible savings for households, freeing up disposable income and helping stimulate demand,” she added.
Record-Breaking Diwali Sales
According to the Confederation of All India Traders (CAIT), Diwali sales soared to an unprecedented ₹6.05 lakh crore this year. This represents a 25% increase over the 2024 festive sales of ₹4.25 lakh crore recorded from Navratri to Diwali period, making it the highest-ever sales in India’s trading history, as per CAIT’s Research and Trade Development Society.
The survey revealed that mainline retail accounted for nearly 85% of total sales, indicating a strong revival of brick-and-mortar markets. The GST rate reductions across key categories including confectionery, home decor, footwear, ready-made garments, consumer durables, and daily-use items significantly improved price competitiveness and accelerated purchase momentum.
Trader and Consumer Response
About 72% of surveyed traders reported higher sales volumes directly attributable to reduced GST rates. Consumers expressed greater satisfaction with stable prices amid festive demand, supporting continued consumption even after Diwali celebrations.
The non-corporate and non-agricultural sector has emerged as a central pillar of India’s growth, driven by 9 crore small businesses, numerous small manufacturing units, and the country’s vast consumer base.
