India’s Festive Spending Soars: Rs 5.40 Lakh Crore in Goods and Rs 65,000 Crore in Services Sales, Says CAIT

New Delhi just recorded its highest-ever Diwali sales, hitting ₹5.40 lakh crore in goods and ₹65,000 crore in services. That’s a striking 25% increase from last year’s ₹4.25 lakh crore! This information comes from a survey by the Confederation of All India Traders (CAIT), which looked at 60 major distribution centers across many cities between Navratri and Diwali.

The survey found that two main factors drove this huge leap: improved GST rates on popular items and the public’s strong support for Prime Minister Narendra Modi’s “Vocal for Local” initiative. Around 87% of surveyed consumers said they preferred buying Indian-made products over imports, which led to a significant drop in demand for Chinese goods.

Manufacturers in India have seen sales rise by over 25% compared to last year. This shift aligns with the government’s push for self-reliance—or the Aatmanirbhar Bharat vision. Brick-and-mortar stores were particularly prominent, accounting for nearly 85% of Diwali sales. Key product categories included gold and jewelry (10%), groceries and fast-moving consumer goods (12%), electronics (8%), and home appliances (7%).

Additional sectors like ready-made garments, home decor, and sweets also experienced strong growth. The service industry, including travel and hospitality, added around ₹65,000 crore in festive business, bolstering the overall retail environment.

The mood among traders is positive, too. The Trader Confidence Index rose from 7.8 to 8.6, while the Consumer Confidence Index moved up to 8.4. Traders believe that lower GST rates, stable pricing, and manageable inflation have made shopping more affordable for consumers.

The festive season also created around 5 million temporary jobs in logistics and delivery. Interestingly, rural and semi-urban areas contributed nearly 28% of total sales, highlighting the growing market beyond major cities.

This year’s Diwali isn’t just a win for sales; it’s a testament to the resilience of India’s retail sector, supported by millions of small traders and local manufacturers. For more insights on India’s retail trends, check official economic reports from the Reserve Bank of India.

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CAIT, RETAIL TRADE IN FESTIVE SEASON, GOLD SALES, GST RATES IN INDIA, DIWALI FESTIVAL SALES, INDIA FESTIVE SPENDING PEAKS WITH RS 5.40 LAKH CRORE IN GOODS, RS 65,000 CRORE IN SERVICES SALES