The festive season this year brought a historic boost to India’s retail and services sectors, with total sales during the Navratri to Diwali period reaching a staggering ₹6.05 lakh crore, according to the Confederation of All India Traders (CAIT). This marks a 25% increase from the ₹4.25 lakh crore recorded during the same period in 2024, highlighting strong consumer demand and positive market sentiment.
Breaking down the figures, goods contributed around ₹5.4 lakh crore, while services accounted for ₹65,000 crore. Notably, mainline retail, brick-and-mortar stores dominated the sales, making up nearly 85% of the total, signaling a resurgence in physical retail channels even as e-commerce continues to grow.
The article identifies two major drivers behind this impressive performance. First, reductions in GST rates on key consumer and retail categories, including confectionery, footwear, home decor, ready-made garments, and consumer durables — helped make products more affordable and boosted purchase momentum. Around 72% of surveyed traders reported that lower GST rates directly contributed to higher sales volumes. Second, strong consumer preference for “swadeshi” or Indian-made products, aligning with the government’s self-reliant agenda, added further momentum.
Rural and semi-urban markets played a significant role, contributing roughly 28% of total sales, demonstrating that consumption growth is spreading beyond major metropolitan areas. This broad-based participation reflects the rising purchasing power of households in smaller towns and villages, complementing urban spending.
The festive season also had notable employment implications. The surge in sales is estimated to have generated temporary jobs for about 50 lakh (5 million) people, covering logistics, transport, retail assistance, packaging, and delivery services. This underscores how festive retail trade supports ancillary industries and temporary employment, providing a short-term boost to livelihoods and the economy.
While the numbers are impressive, a few caveats remain. The data is based on CAIT’s research survey, not an official government release. Also, the employment figure is for temporary work during the festive period, not permanent jobs. Furthermore, while GST rate cuts played a key role, other factors such as pent-up demand, festive sentiment, and seasonal buying trends also contributed to the strong sales.
In summary, the 2025 Diwali festive season set a new record, with retail and services sales reaching ₹6.05 lakh crore, up 25% from last year. Mainline physical stores accounted for 85% of the sales, rural and semi-urban areas contributed 28%, and lower GST rates helped drive higher volumes. Additionally, the surge created around 50 lakh temporary jobs, highlighting the wider economic impact of festive consumption. Analysts and policymakers see this as a positive indicator for India’s consumption recovery and the growing influence of swadeshi products in the domestic market.