India witnesses biggest-ever Diwali business, Know what CAIT report says

CAIT National General Secretary Praveen Khandelwal stated that Prime Minister Narendra Modi’s “Vocal for Local” and “Swadeshi Diwali” campaigns have driven trade to new heights this year.

New Delhi: On the occasion of Diwali 2025, the country recorded its largest trade ever. According to a report by the Confederation of All India Traders (CAIT), this Diwali, sales across the country totaled ₹6.05 lakh crore, including goods trade worth ₹5.40 lakh crore and services trade worth ₹65,000 crore. The report, prepared by CAIT's research arm, CAIT Research and Trade Development Society, includes data from 60 major distribution centers, state capitals, and tier-2 and tier-3 cities across the country.

CAIT National General Secretary Praveen Khandelwal stated that Prime Minister Narendra Modi's "Vocal for Local" and "Swadeshi Diwali" campaigns have driven trade to new heights this year. According to the survey, 87% of consumers preferred Indian goods, leading to a sharp decline in demand for Chinese products. Traders report a 25% increase in sales of Indian goods, indicating a boost to local manufacturing.

Delhi AQI reaches severe level post-Diwali, AAP asks why artificial rain has not been implemented

Grocery and FMCG accounted for the largest share of Diwali sales, accounting for 12%. This was followed by gold and silver (10%), electronics and electricals (8%), consumer durables and readymade garments (7%), and other sectors such as gift items, home decor, sweets and snacks, furniture, puja items, fruits and dry fruits. According to the report, 85% of total trade this year came from non-corporate and traditional markets.

The service sector also saw a turnover of ₹65,000 crore this Diwali. Sectors such as travel, packaging, taxi services, event management, manpower, hospitality, and delivery saw strong demand. This clearly demonstrates that festive business is no longer limited to products; the role of the service sector has also grown rapidly.

Relaxed GST rates have also been cited as a major reason for the increase in business. 72% of traders surveyed agreed that the reduction in GST rates has boosted consumer demand. Consumers also expressed satisfaction with price stability and improved options, leading to an increase in spending.

Diwali 2025: Top 10 most-polluted areas in Delhi day after the festival of lights

This year's festive business has also generated 5 million temporary jobs. Significantly, rural and semi-urban areas contributed 28% of total business, indicating that economic growth is now spreading beyond metropolitan areas.

Based on the report, CAIT has made several recommendations to the government, including simplifying GST procedures for small traders, facilitating access to credit, developing logistics and warehousing hubs in tier-2 and tier-3 cities, and promoting digital payments. It also recommends strengthening traffic, parking, and encroachment management in markets.

This record-breaking Diwali 2025 business not only reflects the strength of the market, but also confirms the sense of self-reliance and economic confidence among Indian consumers and merchants. According to the report, this positive trend will continue into the upcoming winter, wedding, and festival seasons.