Diwali 2025 Trade Exceeds Rs 6 Lakh Crore, Aided by GST Rate Cut: CAIT

Traders across the country have recorded business worth over Rs 6 lakh crore during Diwali, comprising Rs 5.40 lakh crore in goods trade and Rs 65,000 crore in services, making it the highest-ever festive business in India’s trading history, said traders’ body Confederation of All India Traders (CAIT) on Tuesday.

Citing a survey conducted by its research arm CAIT Research & Trade Development Society across 60 major distribution centres including state capitals and Tier 2 & 3 cities, the confederation said 87 per cent of consumers preferred Indian-made goods over imported products, resulting in a sharp decline in demand for Chinese items.

According to the survey, traders reported a 25 per cent surge in sales of Indian-manufactured products compared to last year. Moreover, mainline retail, particularly non-corporate and traditional markets, contributed 85 per cent of total trade.

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Sector-wise share in festive sales was led by electronics and electricals, followed by consumer durables, ready-made garments, gift and home decor items, furnishing and furniture, and more.

Alongside retail trade, services such as packaging, hospitality, cab services, travel, event management, tent & decoration, manpower, and delivery contributed to the service trade.

Citing the survey, CAIT’s General Secretary Praveen Khandelwal said that 72 per cent of surveyed traders attributed higher sales volumes directly to reduced GST rates on daily-use items, footwear, garments, confectionery, home décor, and consumer durables.

He noted that Diwali 2025 trade created 50 lakh temporary jobs in logistics, packaging, transport, and retail services.

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The survey report urged for simplifying GST compliance and enhancing credit access for small traders and manufacturers. It also called for developing logistics and warehousing hubs in Tier 2 & 3 cities along with promoting low-MDR (merchant discount rate) digital payments and market digitization.

“Under the visionary leadership of Prime Minister Narendra Modi, India’s retail trade sector has proven itself as the backbone of Aatmanirbhar Bharat, symbolizing the fusion of tradition, technology, and trust,” said Khandelwal.