India’s retail sector witnessed its highest-ever festive sales this year, with Diwali trade reaching an unprecedented Rs 5.40 lakh crore in goods and Rs 65,000 crore in services, as per a nationwide survey by the Confederation of All India Traders (CAIT). The figures reflect a 25 per cent rise from 2024’s Rs 4.25 lakh crore turnover, underscoring the strong rebound in consumer spending and retail activity during the 2025 festive season, reports news agency ANI.
The survey, conducted by CAIT Research and Trade Development Society across 60 major distribution centres between Navratri (September 29) and Diwali (October 20) across Tier 1, Tier 2 and Tier 3 cities, assessed sales trends, consumer sentiment, and the effect of GST rationalisation and the Government’s Vocal for Local campaign. CAIT credited the record-breaking performance to lower GST rates on key consumer goods and the widespread adoption of Swadeshi products.
According to ANI, the report described Prime Minister Narendra Modi as brand ambassador for GST relief and Indian-made products, noting that his call to buy local products led to large-scale spurt in buying of Indian goods.
Delhi’s Chandni Chowk MP and CAIT Secretary General Praveen Khandelwal said the sale highlights that the GST rationalisation and Swadeshi adoption has inspired both the trading community and consumers alike. He noted that “Vocal for Local” and “Swadeshi Diwali” resonated deeply with the public, as 87 per cent of consumers preferred Indian-made goods over imported products, leading to a sharp decline in demand for Chinese items. Traders reported a 25 per cent surge in sales of Indian-manufactured products compared to last year.
Khandelwal added that Diwali 2025 trade figures indicate a 25 per cent rise over last year’s Rs 4.25 lakh crore sales, with mainline retail – particularly non-corporate and traditional markets – contributing 85 per cent of total trade, marking a strong comeback of physical markets and small traders.
CAIT National President B C Bhartia said that sector-wise, grocery and FMCG accounted for 12 per cent of total sales, followed by gold and jewellery (10 per cent), electronics and electricals (8 per cent), consumer durables (7 per cent), ready-made garments (7 per cent), and gift items (7 per cent). Other major categories included home décor and furnishings (10 per cent combined), sweets and namkeen (5 per cent), textiles and fabrics (4 per cent), pooja articles (3 per cent), fruits and dry fruits (3 per cent), bakery and confectionery (3 per cent), and footwear (2 per cent), while miscellaneous items made up 19 per cent of the total trade.
He added that alongside retail trade, the services sector such as packaging, hospitality, cab services, travel, event management, tent and decoration, manpower, and delivery collectively generated an estimated Rs 65,000 crore, reflecting the ripple effect of the festive economy across multiple sectors.
Employment boost According to the report, 72 per cent of surveyed traders attributed higher sales volumes to reduced GST rates on dailyuse items, footwear, garments, confectionery, home décor, and consumer durables. Consumers also expressed greater satisfaction with stable pricing, which encouraged sustained festive spending.
Trader and consumer sentiments were reported at a decade high, with the Trader Confidence Index (TCI) at 8.6 out of 10 and the Consumer Confidence Index (CCI) at 8.4 out of 10. Both traders and consumers believe the increased consumption trend is sustainable, driven by stable inflation, higher disposable income, and confidence in the national economy.
Khandelwal said that the non-corporate, non-agriculture sector – comprising over nine crore small businesses and millions of manufacturing units – continues to be the main engine of India’s growth. Diwali 2025 trade created 50 lakh temporary jobs in logistics, packaging, transport, and retail services, he said. Rural and semi-urban India accounted for 28 per cent of total trade, confirming deeper economic participation beyond metros.
Policy recommendations for traders Based on the research report, Khandelwal said CAIT has recommended simplifying GST compliance, enhancing credit access for small traders and manufacturers, developing logistics and warehousing hubs in Tier 2 and 3 cities, promoting low-MDR digital payments and market digitisation, and strengthening urban market infrastructure such as traffic and parking facilities. The association also urged continued promotion of “Swadeshi” through coordinated trade – Government messaging.
“This year’s Diwali has been historic – a festival of prosperity, nationalism, and economic confidence,” he said, adding that India’s retail trade sector has proven itself as the backbone of Aatmanirbhar Bharat, symbolising the fusion of tradition, technology, and trust.”
Online sales Not to be left behind, direct-to-consumer (D2C) brands are on track for their biggest festive season yet, driven by record online demand and a sharp rise in quick commerce-led purchases. From personal care and wellness to comfort accessories and toys, order volumes have climbed rapidly as consumers embraced early festive deals and faster delivery options, according to a Moneycontrol report. According to several founders Moneycontrol spoke to, sales are up two to three times from the previous year, reflecting stronger discretionary spending and a clear shift toward impulse-led buying across e-commerce and quick commerce platforms.
Quick commerce platforms such as Blinkit and Zepto have emerged as key growth drivers for D2C brands beyond groceries, helping push smaller festive bundles and gifting packs to consumers seeking faster delivery and lastminute convenience. “This festive season has been noticeably stronger and earlier than 2024. At Nat Habit we’ve seen overall order volumes grow 2X year-on-year, with the strongest weekly spikes coming earlier than in previous years,” co-founder and CEO of beauty and personal care brand, Nat Habit, Swagatika Das said. “Quick commerce is driving a clear uplift in impulse and last-mile gifting categories, while e-commerce is stronger for larger baskets and curated festival bundles,” she told Moneycontrol.
To keep pace with record order volumes, D2C brands leaned heavily on advance planning and decentralised fulfilment this Diwali. Many pre-positioned inventory across regional hubs, extended warehouse shifts and worked closely with partners to prevent bottlenecks during the peak period.
Comfort-products maker Frido, which saw traffic rise 28 per cent and conversions climb 18 per cent year-on-year, said strong pre-season planning and a decentralised fulfilment model helped it stay on schedule even at peak volumes. “Thanks to proactive planning, prepositioning stock across regional hubs and leveraging a decentralised fulfilment network, we’ve been able to manage orders efficiently and maintain timely deliveries,” co-founder and CEO Ganesh Sonawane said.
Platforms helping brands For new players such as Kedara Toys, which sells premium and functional toys, close coordination with platforms was key to managing fulfilment at scale. Founder Vanshi Agarwal said logistics challenges were manageable largely because of real-time platform support. “Platforms have been very proactive in resolving any fulfilment issues in real time,” she said. “We’re allocating inventory where margins and turnaround are stronger, and quick commerce holds a higher budget share for us given the faster stock movement and quicker payouts.”
This year’s Diwali rush also coincided with heightened strain across India’s logistics networks, with packed warehouses, limited fulfilment capacity and a shortage of delivery workers — issues Moneycontrol had reported earlier. Brands said smarter inventory placement and closer coordination with logistics partners were key to keeping deliveries on track despite the pressure.
Brands leveraging AI Artificial intelligence (AI) and automation played a central role in helping brands handle festive-scale operations this year. From forecasting demand to preventing stockouts and optimising manpower, technology gave D2C companies better control over their supply chains during the busiest weeks of the year.
“AI forecasting models ingest daily sell-through, traffic drivers and historical holiday patterns to suggest reorder quantities and timing,” said Nat Habit’s Das. “Automated replenishment and predictive workforce planning materially reduced stockout incidents and improved fulfilment responsiveness.”
Oracura, which sells oral-care appliances, used customised predictive tools to project volumes and balance fulfilment across platforms. “We have deployed AI for customer service and support, and our operations are entirely managed by our dedicated team,” co-founder Prashant Patil said. With both traffic and competition peaking, most D2C brands expanded their marketing budgets for visibility during festive campaigns.
Founders said ad spends rose by 20-30 per cent from 2024, with a larger share directed towards quick commerce platforms to target impulse buyers and lastminute shoppers. “We’ve strategically increased our marketing spends — roughly 22 per cent on e-commerce and 28 per cent on quick commerce,” said Frido’s Sonawane.
“While e-commerce remains our primary channel for large-basket transactions and discovery, quick commerce allows us to cater to impulse and last-minute buyers.” Kedara Toys focused on Blinkit’s Listing Spotlight campaigns and keyword bidding to maximise returns during the peak week. “Our marketing spends are about 3X higher in October compared to September,” Agarwal said.
Marketplaces and quick commerce platforms were also more active than in previous years in helping brands manage festive demand. Amazon and Flipkart offered earlier planning windows and co-marketing options, while Blinkit and Zepto provided curated festive storefronts, algorithmic visibility tools and faster payout cycles.
This year’s festive season marked a step up in execution for D2C brands. Backed by AI tools, decentralised fulfilment, and stronger platform coordination, companies managed record order volumes with minimal disruption even as logistics networks stayed under pressure. BIB