New GST rates underpin Diwali sales:Traders record 25% higher business during festive season; Made in India goods account for 87% of aggregate sales

This time, Diwali festive trade increased by 25% to reach ₹6.05 lakh crore. Out of this, goods worth ₹5.40 lakh crore were sold, and ₹65,000 crore came from services. Last year, in 2024, this figure was ₹4.25 lakh crore. These figures were revealed in CAIT’s report on 21 October 2025. This report titled ‘Research Report on Diwali Festival Sales 2025’ is based on a survey of 60 major distribution centers. This includes state capitals, tier-2 and tier-3 cities. Indian products sold more, Chinese products demand decreased This time, 87% of consumers chose Indian-made goods, which led to a decline in demand for Chinese products. Traders reported that sales of Indian products were 25% higher than last year. The effect of ‘Vocal for Local’ and ‘Swadeshi Diwali’ was clearly visible. Demand for goods increased this time due to GST rate reduction The benefit of reducing GST rates was evident. 72% of traders reported that sales volume increased due to discounts on daily use items like footwear, garments, sweets, home decor and consumer durables. The government’s GST reduction further strengthened the festive mood. Grocery and FMCG had 12% share in total sales CAIT National President BC Bhartiya said that sector-wise, grocery and FMCG had a 12% share in total sales. After this… 50 lakh temporary jobs created in logistics, packaging About 5 million temporary jobs were created. These jobs were created in logistics, packaging, transport and retail services. The non-corporate sector, which includes 90 million small businesses and millions of manufacturing units, proved to be India’s growth engine. Trader and Consumer Confidence Highest in Decade This time confidence reached high levels on both sides. The Trader Confidence Index (TCI) reached 8.6 out of 10, and the Consumer Confidence Index (CCI) reached 8.4. This is the highest level of the decade. Stable pricing and faith in the economy boosted shopping. GST Rationalisation motivated consumers MP from Delhi’s Chandni Chowk and CAIT Secretary General Praveen Khandelwal said – “These sales show that GST rationalization and adopting Swadeshi motivated both the trading community and consumers. ‘Vocal for Local’ has found a place in people’s hearts.” CAIT National President BC Bhartiya shared the sector breakdown and said – The services sector showed the ripple effect of the festive economy. Overall, this proved to be the backbone of ‘Atmanirbhar Bharat’. A fusion of tradition, technology and trust.