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

India’s total sales of goods and services during Diwali 2025 increased to over ₹6 trillion as the central government’s GST rate cut initiative boosted consumer sentiment in the domestic market, news agency PTI reported, 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 during the Diwali season last year stood at ₹ 4.25 billion. The CAIT data is said to have been collected based on the findings of 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, major retail from the non-corporate and traditional markets contributed nearly 85% to the total trade as the physical shopping and small merchants make a comeback in the digital age. Groceries and FMCG at 12%, Gold and Jewelery at 10%, Electronics and Electrical items at 8%, Consumer Durables at 7%, Readymade Garments at 7%, Gift items at 7%, and Home Décor items at 5% were other top contributors to the increase in total retail trade. CAIT National President BC Bhartia highlighted that the services sector’s total sales of ₹65,000 crore comprise sales of packaging, hospitality, taxi services, travel, event management, tents and decoration, manpower and delivery. Was the sale driven by GST cuts? The GST Council has 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. According to the report, 72% of the traders surveyed said that the higher sales were due to the GST rate cuts on items such as footwear, clothing, sweets, home decor and consumer durables. Diwali 2025 has also created 50 lakh temporary jobs in sectors like logistics, packaging, transport and retail services. India’s rural and semi-urban segments accounted for 28% of total trade this year, according to CAIT data.