Buy, buy, buy! Diwali sales hit ₹6 lakh crore high, says CAIT
New Delhi: India witnessed a record-breaking festive season this year, with Diwali sales reaching an all-time high of ₹6.05 lakh crore, according to a report released on Tuesday by the Confederation of All India Traders (CAIT).
Of the total, ₹5.40 lakh crore came from the sale of goods, while the remaining ₹65,000 crore was contributed by the services sector. This significant surge in consumer spending has been attributed to recent GST reforms and strong consumer sentiment.
The CAIT findings are based on a nationwide survey conducted by its research wing, covering 60 key distribution hubs, including state capitals and Tier 2 and 3 cities.
Last year’s Diwali sales were estimated at ₹4.25 lakh crore, marking a substantial year-on-year increase of ₹1.8 lakh crore.
Traditional Retail Leads the Charge
Mainline retail—particularly non-corporate and traditional market players—contributed approximately 85 per cent of the total trade. CAIT noted this reflects a strong resurgence of India’s physical markets and small traders after years of competition from large-format and online retailers.
“The comeback of India’s physical markets and small traders is clearly visible,” the report said.
Sector-Wise Sales Breakdown
Among the top-selling categories this festive season were:
- Grocery & FMCG: 12%
- Gold & Jewellery: 10%
- Electronics & Electricals: 8%
- Consumer Durables: 7%
- Ready-Made Garments: 7%
- Gift Items: 7%
- Home Décor & Furnishings: 10% combined
- Sweets & Namkeen: 5%
- Textiles & Fabrics: 4%
- Pooja Articles & Dry Fruits: 6% combined
- Services Sector Adds ₹65,000 Crore
CAIT National President B. C. Bhartia said, “The services sector added ₹65,000 crore to the Diwali trade from activities such as packaging, hospitality, cab services, travel, event management, tent and decoration, manpower, and delivery services.”
GST Reforms Boost Spending
The report highlighted that 72 per cent of traders surveyed directly linked increased sales volumes to the reduction in GST rates on commonly purchased goods like daily-use items, garments, footwear, home décor, confectionery, and consumer durables.
Consumers also responded positively to stable pricing, which helped drive continued festive spending.
Rural Participation and Job Creation
This year’s Diwali trade was not limited to urban areas. Rural and semi-urban India accounted for 28 per cent of the total sales, indicating broader economic participation beyond metropolitan markets.
According to CAIT, the festival season also created an estimated 50 lakh temporary jobs in sectors such as logistics, transport, packaging, retail support, and delivery.
CAIT anticipates that this festive momentum will continue through the winter season, weddings, and into the next festive cycle starting mid-January 2026.