Diwali retail sales cross ₹6 trillion as GST cuts boost consumer sentiment — what the CAIT data shows

India's total sales of goods and services during Diwali 2025 increased to more than ₹6 trillion as the central government's GST rate cut initiative boosted consumer sentiment in the domestic market, reported news agency PTI, citing Confederation of All India Traders (CAIT) data.

The data collected from the CAIT showed that the total sales of goods reached ₹5.40 trillion, while the sales in services reached ₹65,000 crore, according to the agency report. The report also mentioned that the total Diwali sales stood at ₹4.25 trillion last year during Diwali season.

The CAIT data was reportedly collected based on the findings from 60 major distribution centres, which include state capitals, along with tier two and tier three cities.

Which sectors contributed to Diwali sales 2025?

According to the report, mainline retail from the non-corporate and traditional markets contributed nearly 85% to the total trade, as the physical shopping and small traders make a comeback in the digital era.

Grocery & FMCG at 12%, Gold & Jewellery at 10%, Electronics & Electricals items at 8%, Consumer Durables at 7%, Ready-made Garments at 7%, Gift Items at 7%, and Home Decor items at 5% were among other top contributors for the increase in the total retail sales.

CAIT National President BC Bhartia highlighted that the services sector's total sales of ₹65,000 crore comprised sales from packaging, hospitality, cab services, travel, event management, tent & decoration, manpower, and delivery.

Was the sale driven by GST cuts?

The GST Council implemented a new ‘two-tier’ system compared to its earlier multi-tier system. India now has two tax rates of 5% and 18% for a range of products depending on their type and categories.

Mint reported earlier that under the new GST regime, people of India will record price cuts in multiple products sold in the domestic economy, as the government has imposed a lower tax rate on many items which are sold.

An industry veteran and Partner at Ernst & Young (EY), Saurabh Agarwal, in a social media post, said that the people who earn ₹50,000 per month are expected to save almost ₹1,275 per month after the central government's GST rate rationalisation on products like food items, medical bills, among other things.

According to the report, 72% of the traders who were surveyed said that the higher sales were due to the GST rate cuts on items such as footwear, garments, confectionery, home décor, and consumer durables.

Diwali 2025 also created 50 lakh temporary job opportunities in sectors like logistics, packaging, transport, and retail services. India's rural and semi-urban portions made up 28% of the total trade this year, according to CAIT data.