India’s Diwali Trade Hits Rs 5.4 Lakh Crore, Services Sector Adds Rs 65,000 Crore: CAIT

India's retail landscape lit up brighter than ever this Diwali, as festive sales soared to an all-time high of ₹6.05 lakh crore, signalling a robust revival of traditional markets and a powerful embrace of locally made goods, Business Today reported.

The Confederation of All India Traders (CAIT) unveiled this record-breaking figure in its latest nationwide report, revealing a 25% surge over last year's ₹4.25 lakh crore turnover.

Retail Renaissance Rooted in Local Pride

The CAIT Research & Trade Development Society surveyed 60 key distribution hubs-from bustling metros to Tier 2 and 3 cities-and found that 87% of consumers opted for Indian-made products, the report added.

This shift, driven by Prime Minister Narendra Modi's "Vocal for Local" and "Swadeshi Diwali" campaigns, led to a steep decline in demand for Chinese imports. CAIT Secretary General Praveen Khandelwal hailed Modi as a "brand ambassador" for GST reform and indigenous enterprise.

Sector Snapshot: What India Bought

CAIT's breakdown of the ₹5.40 lakh crore goods trade shows a diverse consumer appetite:

Services Surge Alongside Goods

The service sector added ₹65,000 crore to the festive economy, with packaging, logistics, travel, hospitality, and event management thriving. CAIT National President B.C. Bhartia noted the "multiplier effect" of Diwali spending, which rippled across both tangible and intangible sectors.

Policy Push and Market Confidence

GST rationalisation played a pivotal role, with 72% of traders attributing higher sales to reduced tax rates on essentials, footwear, and home goods. Stable prices and rising disposable incomes pushed the Trader Confidence Index to 8.6/10 and the Consumer Confidence Index to 8.4/10-both decade highs.

Jobs and Rural Reach

The festive boom generated 50 lakh temporary jobs, especially in logistics and retail. Rural and semi-urban regions contributed 28% of total sales, showcasing deeper market penetration and the enduring strength of India's nine crore small businesses.

CAIT's Call to Action

To sustain this momentum, CAIT urged the government to:
- Simplify GST compliance
- Expand credit access for small traders
- Develop logistics hubs in Tier 2 and 3 cities
- Promote low-MDR digital payments
- Upgrade market infrastructure
- Continue Swadeshi campaigns through joint trade-government efforts