India’s Diwali 2025 Breaks All Records with ₹6 Lakh Crore Sales, Redefining the Festive Economy

New Delhi, October 2025:
India’s Diwali celebrations this year have made economic history. With total sales surpassing $68 billion (around ₹6 lakh crore), the 2025 festive season has become the biggest retail event in the country’s history. The data, highlighted in Vantage with Palki Sharma streamed on October 20, 2025, reflects the strength of India’s domestic demand and the growing preference for locally made goods.

According to the Confederation of All India Traders (CAIT), total Diwali-related business stood at around ₹5.4 lakh crore in goods and ₹65,000 crore in services, amounting to over ₹6 trillion in total trade. This represents a record-breaking 25% jump compared to the ₹4.25 lakh crore in 2024, underscoring the resilience of India’s retail market even amid global economic uncertainties.

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Record-Breaking Festive Economy

CAIT described this year’s Diwali as a “landmark moment” for Indian traders. The record sales were fueled by improved purchasing power, stable inflation, and strong consumer confidence. Government initiatives like “Vocal for Local” and Aatmanirbhar Bharat also encouraged Indians to choose domestic products over imported ones.

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Key Factors Behind the Boom

GST Rate Simplification:
Recent reforms reducing GST to two main slabs (5% and 18%) simplified the tax structure and reduced prices, directly boosting consumer spending.

Swadeshi Preference:
Nearly 87% of consumers preferred Indian-made goods, resulting in a significant fall in sales of Chinese products. Traders across major markets like Delhi, Mumbai, Chennai, and Lucknow reported a clear shift toward locally produced decorations, electronics, and apparel.

Rural and Tier-2 Market Surge:
Approximately 28% of total sales came from rural and semi-urban India, marking a strong sign of inclusive growth. Tier-2 cities such as Coimbatore, Surat, and Indore saw major jumps in retail footfall.

Employment Generation:
The festive rush created nearly 50 lakh temporary jobs in logistics, retail, hospitality, and delivery services, offering short-term economic relief and boosting local incomes.

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Insights from Vantage with Palki Sharma

In the Diwali special episode of Vantage, journalist Palki Sharma highlighted that India’s booming festive economy is driven largely by its domestic consumption engine, which has become a model for self-sustained growth.
She noted that while external challenges such as U.S. tariff barriers may affect exports, the internal retail sector remains robust due to rising middle-class demand and thriving small traders.

Sharma described the phenomenon as “India’s transition from a global supplier to a domestic consumption powerhouse,” emphasizing that the small business ecosystem—backed by GST reforms and manufacturing incentives—has turned India’s festivals into major economic events.

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A Festival of Self-Reliance and Confidence

Diwali 2025 has not only broken all previous sales records but has also reaffirmed India’s journey toward self-reliance and indigenous innovation. Under Prime Minister Narendra Modi’s economic vision, the blend of policy stability, entrepreneurial spirit, and consumer nationalism has reshaped the Indian festive economy.

The season’s success highlights how India’s small traders, artisans, and local manufacturers are emerging as key pillars of growth—turning the festival of lights into a celebration of economic confidence, national pride, and inclusive prosperity.

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