Diwali 2025 turned out to be India’s most prosperous festive season, with total sales touching ₹6.05 lakh crore according to the Confederation of All India Traders. This is 25% higher than last year’s ₹4.25 lakh crore, showing strong consumer demand across the country.
GST Cuts Made The Difference This Diwali
The government’s decision to reduce GST rates on daily-use goods paid off. Nearly 72% of traders said these tax cuts helped them sell more. When things cost less, people buy more. Add to that stable inflation and better salaries, and you get a shopping season like this one.
Both cities and villages reported strong sales. People had money to spend, and they spent it freely.
Indians Choose Indian Products
Prime Minister Narendra Modi’s “Vocal for Local” and “Swadeshi Diwali” campaigns worked wonders. A massive 87% of consumers preferred Indian products over imported goods this Diwali.
Sales of domestically manufactured products jumped by 25%, while Chinese products saw a sharp decline in demand. People actively chose to support local businesses and Indian manufacturers.
What Sold The Most?
FMCG products led the chart with 12% of total sales. This includes groceries, personal care items, and household goods. Gold jewelry came second at 10%, followed by electronic items at 8%. Garments and gift items each accounted for 7% of the total spending.
5 Million Jobs Created
The festive rush generated around 5 million temporary jobs. Logistics companies, packaging units, retail stores, and transport services all needed extra hands. These jobs helped many families earn during the festival period.
High Confidence Levels
The trade confidence index stood at 8.6 out of 10, while the consumer confidence index reached 8.4 out of 10. Both traders and buyers are optimistic about the future, suggesting this growth will continue.
What Experts Recommend
To keep this momentum going, experts suggest amplifying GST compliance for small traders, improving credit access for businesses, and enhancing logistics infrastructure in Tier II and Tier III cities.
Diwali 2025 proved that India’s domestic market is strong and growing. When economic policy supports consumers and businesses, and when people choose to support local products, everyone benefits. The ₹6.05 lakh crore spent this season shows India’s economy is moving in the right direction.
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