NEW DELHI– India’s retail sector witnessed its highest-ever Diwali sales this year, with total turnover hitting Rs 5.40 lakh crore in goods and Rs 65,000 crore in services nationwide, according to industry estimates released Tuesday. The surge was driven by Goods and Services Tax (GST) reforms and robust consumer demand across urban and rural markets.
The Confederation of All India Traders’ (CAIT) Research and Trade Development Society reported that overall festive sales rose 25 percent compared to 2024, when turnover during the Navratri-to-Diwali period reached Rs 4.25 lakh crore.
Mainline retail accounted for nearly 85 percent of total sales, underscoring a strong comeback for brick-and-mortar stores. The reduction in GST rates on key consumer categories—such as confectionery, home décor, footwear, ready-made garments, consumer durables, and everyday goods—boosted price competitiveness and spurred higher purchase volumes.
Roughly 72 percent of surveyed traders attributed their higher sales to the GST cuts, while consumers expressed satisfaction with stable prices despite heightened demand. The study noted that rural and semi-urban markets contributed nearly 28 percent of total sales, reflecting deeper economic reach beyond major cities.
The festival boom also generated temporary employment for nearly 5 million people across logistics, retail, packaging, and delivery sectors, the report said.
“The Diwali trade surge has set a new benchmark in India’s retail and trading economy, symbolizing the fusion of tradition, technology, and trust in Indian enterprise,” CAIT said. “This year’s Diwali marks a major milestone in building an Aatmanirbhar Bharat under the visionary leadership of Prime Minister Narendra Modi.”
The record-breaking sales highlight growing consumer confidence and point to continued momentum in India’s post-reform retail recovery. (Source: IANS)
