CHENNAI: India’s retail sector recorded a historic surge in business during the 2025 Diwali season, according to estimates by the Confederation of All India Traders (CAIT). The organisation reported that traders across the country achieved sales worth around Rs 5.4 lakh crore in goods, along with an additional Rs 65,000 crore in services. The strong performance reflects robust consumer confidence, festive enthusiasm, and the growing success of domestic products amid the continued boycott of Chinese-made goods, according to the report.
CAIT said this year’s Diwali sales surpassed all previous records, marking a sharp rise over the Rs 4.25 lakh crore festive business seen in 2024. The surge was driven by strong participation from both metropolitan and Tier 2 and Tier 3 markets, where consumer spending remained buoyant.
The extended festive period—from Navratri and Dussehra to Diwali—helped sustain momentum across key sectors such as jewellery, electronics, clothing, home décor, and food products. Consumer sentiment remained upbeat despite inflationary pressures, as retailers offered heavy discounts, combo deals, and “vocal for local” branding to attract footfall.
Key growth drivers were:
Festive optimism: Positive consumer sentiment and high spending on essentials, gifts, and luxury items helped drive the uptrend. Traders reported a sharp rise in footfall across 70 major trading hubs surveyed by CAIT.
‘Vocal for local’ impact: The campaign to promote Indian-made goods has gained traction. CAIT estimated that Chinese-made festival merchandise lost about Rs 1.25 lakh crore in potential business this year, as both traders and consumers chose local alternatives.
Category expansion: Gold and silver purchases remained robust, with Rs 20,000 crore worth of gold and Rs 2,500 crore of silver sold on Dhanteras alone. Other key segments included clothing, electronics, household items, and sweets.
Regional participation: The retail boom was not confined to metros. For instance, Kolkata’s Diwali and Kali Puja shopping reached nearly Rs 17,000 crore, up 16 percent over last year, highlighting rising demand in regional markets.
The industry sector that witnessed the retail growth included jewellery, electronics, home and lifestyle, and local handicrafts.
Gold and silver sales dominated Dhanteras, supported by high wedding-related demand, while around 8 percent of festive spending came from electronics category, as consumers upgraded appliances and gadgets.
Furniture, home décor, and kitchenware saw brisk movement as people invested in refurbishing homes ahead of the festival.
Rising preference for Indian artisans’ products boosted small and micro enterprises, including traditional lamp-makers and craftspeople.
Offline vs. online
Despite the dominance of online platforms, physical markets remained vibrant. Traders emphasised that the festive spirit, in-store experience, and immediate product availability kept brick-and-mortar sales strong. However, CAIT cautioned that e-commerce competition continues to challenge traditional retailers, urging the government to ensure fair trade practices.
The robust Diwali sales underline the importance of the festive period for India’s economy. Retailers expect the momentum to continue into the upcoming wedding season, where nearly 48 lakh weddings between November and December could generate an additional ₹6 lakh crore in business.
While the growth trend remains strong, traders are watching factors like inflation, rural demand, and input costs, which could affect margins in the coming months.
CAIT’s report highlights that a retail boom signals the strength of India’s domestic market and its growing shift towards self-reliance, setting a strong tone for year-end consumption. In short, the report said that Diwali 2025 reaffirmed the festival’s role as India’s biggest economic catalyst, lighting up not just homes but also the country’s trade and business sentiment.
