India’s Diwali season this year lit up more than just homes — it set a new benchmark in retail history. As per a nationwide survey by the CAIT Research & Trade Development Society, festive sales touched a record ₹5.40 lakh crore across the country. That’s a massive 25% jump from last year’s ₹4.25 lakh crore.
The findings, drawn from 60 major trade hubs across tier 1 to tier 3 cities, point to a strong comeback in consumer spending and rising confidence among traders. Analysts link this growth partly to the government’s focus on Swadeshi products and a more streamlined GST regime, which may have boosted buyers’ trust in domestic markets. The report also described Prime Minister Narendra Modi as a “strong brand ambassador” for Indian-made goods, crediting his push for local products with shaping public sentiment.
Interestingly, nearly 85% of the sales came from traditional retail — a clear signal that physical markets are far from being overshadowed by e-commerce. Streets across India’s business districts reportedly saw festive crowds reminiscent of pre-Covid times, as shoppers preferred the tactile joy of buying in person.
The CAIT study also notes a remarkable 87% of consumers chose Indian-made products this year — a sign that the Swadeshi movement is no longer just an emotional pitch but a tangible shift in buying behaviour.
Gold and jewellery led the charts with 10% of total sales, followed closely by grocery and FMCG (12%), and consumer durables (7%). Electronics, gift items, garments, furniture, and home décor also saw brisk demand. Even sweets and snacks had their moment, showing that festive indulgence hasn’t lost its charm despite price hikes in essentials.
Economists suggest that this Diwali’s sales boom reflects a mix of economic revival and national sentiment. Rationalised GST rates may have made spending smoother, while the steady rise in household income and rural demand has added more muscle to the retail economy.
It remains to be seen if this momentum carries through the coming quarters, but one thing seems clear — India’s festive markets have regained their buzz, and the heart of the retail economy still beats strongest in its bustling bazaars.