New Delhi, India – Retail sales across India reached an unprecedented ₹6.05 trillion during the Diwali 2025 festive season, marking a significant 25% increase from the previous year. Data released by the Confederation of All India Traders (CAIT) shows that reduced Goods and Services Tax (GST) rates played a crucial role in boosting consumer sentiment and purchasing power across the nation. This record-breaking performance reflects a strong rebound in India's domestic market. ### ^{[1][2][3][4][5][6][7][8]}Record Sales Driven by Tax Cuts and Local Products The total sales figure of ₹6.05 trillion includes ₹5.40 trillion from goods and ₹65,000 crore from services. This surge ^{[1][3][9][10][5][11][8]}represents a substantial jump from the ₹4.25 trillion recorded during Diwali in 2024. CAIT attribut^{[1][3][9][4][5][12][6][7][13][8]}ed this remarkable growth primarily to two factors: the central government's GST rate cut initiative and a strong public preference for Indian-made products. A nationwide^{[1][2][3][4][10][5][12][7][13]} survey by CAIT revealed that 72% of traders linked the higher sales volumes directly to the recently reduced GST rates on daily-use items. These cuts ap^{[1][2][3][4][10][12]}plied to categories like footwear, garments, confectionery, home decor, and consumer durables. Finance Minis^{[2][3][10][12]}ter Nirmala Sitharaman confirmed that GST rate reduction benefits are reaching consumers, stimulating increased purchases across the country. The GST Counc^[14][15][16]il implemented a simplified two-tier tax structure, moving to 5% and 18% rates for a wide range of products. ### 'Vocal f^[10][14]or Local' Campaign Boosts Domestic Goods Prime Minister Narendra Modi's 'Vocal for Local' and 'Swadeshi Diwali' campaigns resonated deeply with consumers this festive season. The CAIT repo^{[3][4][17][5][18][11][7][13][8]}rt stated that 87% of consumers preferred Indian-made goods over imported products. This preferen^{[1][4][5][12][11][7][13][8]}ce led to a 25% surge in sales of domestically manufactured items compared to last year. Conversely, d^{[1][4][12][11][8]}emand for Chinese products saw a sharp decline across major Indian markets. Praveen Khan^{[1][19][4][5][12][11][7][13]}delwal, Secretary General of CAIT, emphasized the impact of this shift. "The Prime Minister's call for a 'Vocal for Local' and 'Swadeshi Diwali' resonated deeply with consumers," Khandelwal said. He added that^[5][8] this year's Diwali has set a new benchmark in India's trade history, reflecting both consumer patriotism and economic confidence. ### Traditio^{[4][17][18][11][13]}nal Markets See Strong Comeback The CAIT data, compiled from a nationwide survey across 60 major distribution centers, including state capitals and Tier 2 and Tier 3 cities, highlighted the resurgence of traditional retail. Mainline reta^{[2][3][9][10][11][7][13][8]}il from non-corporate and traditional markets contributed nearly 85% to the total trade. This indicate^{[2][3][9][10][5][12][11][7][13][8]}s a strong comeback for physical markets and small traders in an increasingly digital era. Rural and sem^{[3][9][10][5][12][13][8]}i-urban areas also played a significant role, accounting for 28% of the total trade. This shows th^[2][5][13]e festival's widespread economic impact beyond metropolitan centers. Key sectors ^[10][5][13]saw substantial contributions to the overall sales. Grocery and Fast-Moving Consumer Goods (FMCG) led with a 12% share. Gold and Jewe^{[1][9][10][5][11][7][13]}llery followed at 10%, while Electronics and Electricals accounted for 8% of sales. Consumer Dura^{[1][9][10][5][11][7][13]}bles, Ready-made Garments, and Gift Items each contributed 7% to the festive trade. ### Job Crea^{[1][9][10][5][11][7][13]}tion and Positive Outlook The festive season also generated approximately 5 million (50 lakh) temporary job opportunities. These jobs sp^{[2][3][4][10][5]}anned various sectors, including logistics, packaging, transport, and retail services. B.C. Bhartia,^{[2][3][4][10][5]} CAIT National President, noted that the services sector alone added ₹65,000 crore to the sales. This included r^[2][3][10]evenue from packaging, hospitality, cab services, travel, event management, and delivery. Both traders a^{[2][3][10][5]}nd consumers expressed high confidence in the economy. The Trader Confidence Index stood at 8.6 out of 10, while the Consumer Confidence Index reached 8.4 out of 10. This optimism s^{[1][4][12][8]}uggests that the current consumption trend will likely continue, supported by stable inflation and higher disposable incomes. CAIT expects th^[1][4][12]is buoyancy to extend through the winter, wedding season, and into the next festive period.