India's festive spending peaks with Rs 5.40 lakh crore in goods, Rs 65,000 crore in services sales: CAIT

According to the latest survey by the Confederation of All India Traders (CAIT), this year's Diwali sales reflected a remarkable 25 per cent jump compared to 2024's Rs 4.25 lakh crore.

The findings, compiled by the CAIT Research & Trade Development Society, are based on a pan-India survey conducted across 60 major distribution centres representing Tier 1, Tier 2, and Tier 3 cities between Navratri (September 29) and Diwali (October 20). The study evaluated sales performance, consumer sentiment, and the economic influence of GST rationalisation and the government's call for Swadeshi adoption.

CAIT's report attributed this record-breaking performance to two major factors -- the rationalisation of GST rates across key consumer categories and the strong public response to Prime Minister Narendra Modi's "Vocal for Local" campaign.

The survey described PM Modi as a "brand ambassador" for GST relief and Swadeshi products, noting that his appeal for buying Indian goods resonated widely among both traders and consumers. Nearly 87 per cent of consumers surveyed said they preferred Indian-made goods over imported ones, and demand for Chinese products declined sharply across all major markets.

Indian manufacturers' sales rose by over 25 per cent compared to last year, signalling a decisive move toward economic self-reliance under the government's Aatmanirbhar Bharat vision.

Traditional markets saw a strong revival, with brick-and-mortar retail accounting for nearly 85 per cent of total Diwali trade. Gold and jewellery contributed around 10 per cent to overall sales, followed by grocery and FMCG (12 per cent), electronics and electricals (8 per cent), and consumer durables (7 per cent). Other key segments such as ready-made garments, home decor, sweets, furnishings, and gift items also saw double-digit growth in several regions.

Alongside goods, the service sector -- including packaging, travel, hospitality, event management, manpower agencies, cab services, and delivery networks -- generated an estimated Rs 65,000 crore in festive business, further strengthening the broader retail ecosystem.

The report noted that market sentiment remained upbeat, with the Trader Confidence Index (TCI) rising to 8.6 (from 7.8 in 2024) and the Consumer Confidence Index (CCI) improving to 8.4, reflecting optimism about the economy's stability and spending potential.

Traders attributed the surge in demand to reduced GST rates, stable prices, and moderate inflation, which together enhanced consumers' purchasing power. The festival season also created nearly 50 lakh temporary jobs in logistics, transportation, packaging, and delivery services, while rural and semi-urban regions contributed nearly 28 per cent of overall sales, indicating deep market penetration beyond metro cities.

CAIT emphasised that this year's Diwali marked a new benchmark for India's retail economy, driven by nine crore small traders and countless small manufacturers forming the backbone of the non-corporate, non-agricultural sector. (ANI)