Buoyed by crucial GST reforms and a massive surge in consumer demand, India has recorded its highest-ever festival season turnover in retail and trading history, with sales soaring to an estimated ₹6.05 lakh crore during the Navratri-to-Diwali period in 2025. Industry figures released by the CAIT Research and Trade Development Society, the research arm of the Confederation of All India Traders (CAIT), on Tuesday revealed a stunning 25 per cent increase over the 2024 festive sales, which stood at ₹4.84 lakh crore.
The total trade volume was split into:
- Goods: ₹5.40 lakh crore
- Services: ₹65,000 crore
GST Cuts Ignite Purchase Momentum
A significant driver of this monumental growth was the reduction in GST rates across key consumer and retail categories, including home decor, footwear, ready-made garments, and consumer durables. According to the survey, the lower taxes significantly enhanced price competitiveness and fueled purchase momentum. 72 per cent of surveyed traders reported a direct increase in sales volumes attributable to these reduced GST rates. Furthermore, consumers expressed high satisfaction with stable prices amidst the festive rush, a factor aiding consumption continuity even post-Diwali.
Traditional Markets See Strong Revival
The data highlighted a powerful return to the physical marketplace, with mainline retail or brick and mortar stores, accounting for nearly 85 per cent of the total sales. This strong performance signals a robust revival of traditional trading channels across the country. “Diwali 2025 has set a new benchmark in India’s retail and trading economy symbolising the fusion of tradition, technology, and trust in Indian enterprise,” said a CAIT spokesperson.
Rural Economy Emerges as a Key Pillar
The growth was not limited to metropolitan centres. Enhanced purchasing power in rural and semi-urban areas contributed nearly 28 per cent of the overall sales, underscoring deep economic penetration beyond the metros. This historic trade surge, driven by 9 crore small businesses and crores of small manufacturing units, generated temporary employment for nearly 50 lakh people across logistics, transport, packaging, and delivery sectors, providing a massive boost to the non-corporate and non-agricultural sector of the economy.
CAIT hailed this year’s Diwali as a major milestone in building an Aatmanirbhar Bharat (Self-Reliant India), crediting the visionary leadership for laying the foundation for such a record-breaking performance.
Deputy Editor, Prime Post
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It’s key point to note that cut down in GST ignite purchase momentum. It’s good.