Indias retail sector is celebrating an iconic Diwali season, the Confederation of All India Traders (CAIT) has forecasted that festive sales will reach an all-time high of 4.75 lakh crore in 2025. This is the most powerful result in over a decade, underlining the strength, and the breadth, and the flexibility of the Indian domestic market.
According to CAIT, the spectacular growth has its roots in a mix of factors beneficial policy reforms, a lively Swadeshi feeling, and consumer confidence rising in all income groups. Retailers in the major markets of India the cities of Delhi, Mumbai, Jaipur, and Chennai have witnessed good sales in all categories, indicating that consumer spending is back to normal after the pandemic.
Detailed estimates by CAIT reveal the festive season as the major contributor to growth in various sectors. The spending has been broken down as follows:
The wide spectrum shows Diwalis impact as not just a festival of culture but also an economic catalyser that involves both essential and lifestyle spending. The festivals economic footprint spans the urban and rural markets of the country, which are now the main consumers of everything from household staples to luxury products.
CAIT Secretary General and Chandni Chowk MP Praveen Khandelwal pointed to policy reforms supported by the current government as the cause of the headline-breaking performance.
Prime Minister Narendra Modis cut in GST rates along with the call for Swadeshi and Vocal for Local have been very impactful for the trading community, said Khandelwal.
The indirect taxes were lowered, which enabled the traders to give their products at competitive prices and at the same time, small and medium enterprises profitability was enhanced. The reforms, coupled with a national concentration on local production, have breathed new life into village markets. Khandelwal remarked that Diwali is no longer lighting lamps, but powering the entire economic ecosystem of Bharat.
In reality, the festive period has become a seasonal incentive for the small traders, the artisans, and the local manufacturers, hence the prosperity that is spread over different layers of the economy.
The major consumer trend at Diwali 2025 is the revival of Swadeshi buying products that are made in India. The consumers in India both in traditional markets and in air-conditioned malls are increasingly going for the governments Atmanirbhar Bharat mission-compliant indigenous products.
Retailers depict a varied range of spending: some families buy within a low range of 5001,000, while others spend thousands or even lakhs on premium goods. Such a diversity points to the wide consumer participation in the festival and the overall health of the Indian consumer economy.
The transition towards Indian brands also indicates that the trust in local artists and the quality of the products, as the consumers perceive every purchase as a contribution to Indias growth story.
The Diwali boom is not only limited to retail counters, but the festival season has created a multiplier effect across the service industries of India. Higher business volumes have been reported by hotels, restaurants, banquet halls, event managers, cab operators, decorators, musicians, and artists.
The increase is the result of numerous community events, family gatherings, and cultural programs. This relationship between retail and services is what makes Diwali the most economically important season in India, as it brings together commerce, culture, and community celebration.
As Indias retail sector moves towards a historic milestone, CAITs advice to traders is to promote and use Swadeshi products, ensuring value and truthfulness for customers.
Meanwhile, Diwali 2025 will be a celebration of Swadeshi and Atmanirbhar Bharat, said Khandelwal.
Consequently, 2025 Diwali is the testimony of Indias self-reliance, consumer confidence, and entrepreneurial spirit. As the celebrations brighten the whole nation, the retail and service sectors that together form the domestic economy, which is strong and confident and ready to be the next growth chapter, are sending out the signals.
