Finance Minister Nirmala Sitharaman on Wednesday hailed India’s festive win and called the unprecedented ₹6.05 lakh crore sales in Diwali 2025—up 25% from ₹4.25 lakh crore in 2024—as a testament to the GST reforms and the spirit of “vocal for local”. Citing the Confederation of All India Traders (CAIT), he noted sales of ₹5.4 lakh crore from goods and ₹65,000 crore from services, the highest in the history of trade according to the Research and Trade Development Society survey conducted at 60 centers of CAIT.
The surge, spanning from Navratri to Diwali, reflects non-corporate resilience—9 crore small businesses fueling growth amid 50 lakh temporary jobs in logistics, retail and delivery. Rural and semi-urban markets contributed 28% of sales, with 87% of consumers preferring Indian products, leading to reduction in Chinese imports by ₹1.25 lakh crore.
The two-tier structure of GST 2.0 (5-18%) on apparel, footwear, embellishments and durables led to a growth of 25-30%; 72% of merchants credited affordable pricing for the continued demand. 85% share was captured by physical stores, leading to the resurgence of traditional markets compared to e-commerce.
Sector Highlights: Grocery/FMCG (12%), Gold/Jewelry (10%), Electronics (8%), Apparel/Gifts/Durables (7% each), Decor/Furniture/Confectioners (5%). Confidence boost—Trader index 8.6/10, Consumer 8.4/10—Blend of tradition and technology for stable spending after festivals.
“This Diwali sets a benchmark for retail trade that embodies heritage, innovation and faith in Indian enterprise—crucial to Prime Minister Modi’s vision of a self-reliant India,” CAIT announced. Sitharaman also said the same: “Indigenous demand and changes in GST have empowered consumers and validated the reforms.” CAIT has urged for simplified compliance, credit accessibility and Tier-2/3 logistics to maintain this momentum.
With weddings likely to be a business worth Rs 5 lakh crore, the surge indicates a strong fourth quarter gross domestic product (GDP), a mix of cultural enthusiasm and economic vibrancy.
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