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India’s festive market saw an extraordinary rise this Diwali, with total sales reaching an all-time high of Rs 6.05 lakh crore, according to data released by the Confederation of All India Traders (CAIT). This remarkable surge showed the strength of India’s consumer spending and the revival of traditional markets after years of challenges caused by inflation and global economic uncertainty.

Of the total sales, Rs 5.40 lakh crore came from goods and Rs 65,000 crore from services. This is a massive jump from last year’s Rs 4.25 lakh crore trade, marking almost a 42 per cent increase in festive spending.

Traditional markets lead the way

The biggest highlight of this year’s Diwali sales was the comeback of traditional and non-corporate retail markets. According to CAIT, these physical markets contributed around 85 per cent of the total trade. This means that small shopkeepers, local traders, and traditional marketplaces across cities and towns dominated India’s festive sales.

The success of these markets points to growing consumer trust in local businesses. After several years of increasing dominance by e-commerce platforms, this year’s figures prove that India’s retail economy still largely depends on physical stores and small business owners.

Major trading hubs such as Delhi’s Chandni Chowk, Mumbai’s Zaveri Bazaar, Kolkata’s Burrabazar, and Chennai’s T Nagar witnessed heavy footfall. Similar trends were seen across Tier-II and Tier-III cities, where families preferred to shop locally instead of online.

CAIT National President BC Bhartia said that this year’s Diwali sales were supported by strong consumer confidence and the government’s recent GST reforms. The report showed that 72 per cent of traders linked the higher sales to the reduction of GST on essential and popular festive items.

Items like daily-use products, footwear, garments, confectionery, home décor, and consumer durables became more affordable after the GST cuts. This encouraged consumers to spend freely during the festive period without worrying about price hikes.

The CAIT report also highlighted that most consumers were satisfied with the stability in prices compared to last year. The combination of steady prices, improved product availability, and attractive festive discounts created a positive buying atmosphere across the country.

Sector-wise sales show diverse demand

The Diwali shopping boom covered a wide range of sectors. According to the CAIT data, grocery and FMCG items made up about 12 per cent of total sales, while gold and jewellery accounted for 10 per cent. Electronics and electrical items contributed 8 per cent, followed by consumer durables and ready-made garments, each with 7 per cent.

Gift items, home décor, and furnishing and furniture each represented around 5–7 per cent of the total. Meanwhile, sweets and namkeen also saw strong demand, taking up 5 per cent of sales. Other festive essentials such as textiles, fabrics, pooja articles, fruits, and dry fruits together made up another 10 per cent.

This wide distribution of spending shows how Diwali continues to influence nearly every sector of India’s economy — from goldsmiths to garment sellers, and from electronics stores to sweet shops.

Apart from goods, the services sector also received a strong boost during the festive season. The CAIT report estimated that services contributed about Rs 65,000 crore to the total Diwali trade.

This growth was mainly driven by high demand for event management, packaging, hospitality, travel, decoration, cab services, and manpower support. The surge in festive gatherings, weddings, and family functions created fresh opportunities for small service-based businesses.

As people travelled more, booked venues for celebrations, and used online and offline delivery services, service providers across urban and semi-urban regions benefited from this festive wave.

One of the most positive outcomes of the record Diwali sales was the creation of employment. According to CAIT, nearly 50 lakh temporary jobs were generated across the country during the festive period.

The retail, logistics, packaging, transport, and hospitality industries witnessed the highest demand for manpower. Workers were hired to manage store operations, pack goods, deliver orders, and assist in festive events. Many of these short-term roles are expected to continue through the upcoming winter and wedding season.

Bhartia noted that such employment spikes are not only good for the economy but also provide income opportunities for daily wage workers and youth seeking seasonal jobs.

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Rural and semi-urban India show strong participation

Another significant observation from the CAIT report was the active participation of rural and semi-urban India in this year’s trade. Nearly 28 per cent of the total Diwali business came from these regions, highlighting the growing purchasing power outside big cities.

Improved connectivity, better digital payment options, and expanding retail networks have helped small towns and villages become important contributors to India’s overall trade. From local sweet shops to rural jewellery stores, businesses across these areas reported strong sales growth.

The festive sales boom is expected to continue beyond Diwali. CAIT predicts that the ongoing winter and wedding season — followed by festivals from mid-January — will maintain strong sales momentum.

Experts believe that the Diwali 2025 performance sets a positive tone for India’s retail economy, showing that consumer confidence remains high and local markets remain resilient. The rise in spending and employment during this festive period underlines the strength of India’s domestic market, which continues to be one of the most dynamic in the world.

In summary, Diwali 2025 brought record-breaking trade worth Rs 6.05 lakh crore, led by local markets, GST-driven price relief, and high consumer enthusiasm. With 50 lakh jobs created and strong participation from both urban and rural areas, this year’s Diwali proved to be not just a festival of lights but also a festival of economic growth for India.