India’s retail sector just hit a record high this festive season. Diwali sales soared to ₹5.40 lakh crore in products and an extra ₹65,000 crore in services. This marks a huge 25% increase from last year’s ₹4.25 lakh crore, showing that people are eager to spend.
The Confederation of All India Traders (CAIT) conducted a survey across 60 distribution centers from Navratri to Diwali. They looked at buying patterns, consumer feelings, and the impact of recent GST changes and the government’s push for local products. One big reason for this boost is the lower GST rates on important goods, making them more affordable.
CAIT mentioned Prime Minister Narendra Modi as a key supporter for this change, likening him to a “brand ambassador” for local products. Almost 87% of consumers now prefer Indian-made items over imports, leading to a sharp decline in demand for Chinese goods.
Consumers are responding well to the government’s Aatmanirbhar Bharat initiative, with sales for Indian manufacturers jumping over 25% compared to last year. Traditional stores played a big role, accounting for nearly 85% of the festive trades. Gold and jewelry took up about 10% of total sales, with groceries and fast-moving consumer goods at 12%, electronics at 8%, and durable goods at 7%. Popular categories like clothing and home decor also saw significant growth.
The service sector added another ₹65,000 crore, generating around 50 lakh temporary jobs. Notably, rural and semi-urban areas contributed nearly 28% of total sales, highlighting a shift away from just urban spending.
Consumer confidence is on the rise, too. The Trader Confidence Index moved from 7.8 to 8.6 this year. At the same time, the Consumer Confidence Index improved to 8.4. These changes reflect stable prices and moderate inflation, which has helped boost purchasing power.
During Dhanteras, jewelry sales were particularly robust, with estimates reaching ₹85,000 crore in just two days. Overall, the market for jewelry could reach ₹1 to ₹1.35 lakh crore this season.
In summary, this festive season has set a new record for India’s retail market, driven by the efforts of small traders and local manufacturers. The push for local products is not only revitalizing consumer spending but also creating jobs and increasing market reach beyond urban centers.
For more insights, you can check the CAIT’s findings on the Confederation of All India Traders.
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