Diwali 2025 Likely To Witness Record Rs 5 Lakh Crore Trade: Traders' Body

India is likely to witness its biggest-ever festive business season this Diwali, with total trade expected to cross Rs 5 lakh crore, according to the Confederation of All India Traders (CAIT). 

Diwali 2025 could be described as the largest "economic fair" in India's history since Independence, CAIT General Secretary and BJP MP Praveen Khandelwal told NDTV.

"This Diwali season can be considered the biggest 'economic fair' after Independence, as we are likely to cross the Rs 5 lakh crore mark," said Praveen Khandelwal.

He added that CAIT conducted surveys in more than 35 cities and received online feedback from over 100 cities through trader associations. 

Based on the footfall recorded during the Navratri season, the confederation estimates that Rs 4.75 lakh crore worth of trade will take place in goods and retail alone, a record high.

"At the same time, we expect the services sector, especially event management and packaging industries, to see a significant rise in business during the Diwali season," Praveen Khandelwal added.

According to the CAIT, Diwali spending this year is expected to cover a wide range of sectors. Around 13 per cent of festive expenses are likely to go towards food and groceries, followed by 12 per cent on textiles and garments, reported ETV Bharat.

Other key areas include electronic goods (8 per cent), gift items (8 per cent), cosmetics and personal care (6 per cent), and furnishing and furniture (4 per cent).

Smaller portions of spending are expected for fruits and dry fruits (3 per cent), sweets and namkeen (4 per cent), electrical items (4 per cent), home decor (3 per cent), utensils and kitchenware (3 per cent), pooja items (3 per cent), and confectionery and bakery products (2 per cent).

The largest share, 24 per cent, is projected to go towards miscellaneous goods, including automobiles, toys, packaging, stationery, travel, and other items.

From Rs 1.25 lakh crore in 2021 to a projected Rs 4.75 lakh crore in 2025, India's markets are scripting a historic growth story. In Delhi alone, sales are expected to touch Rs 75,000 crore.

Explaining the factors behind the record-breaking sale, Praveen Khandelwal said there are two major reasons for the surge in trade this year. The first is the government's recent reduction in GST rates, he said, adding the reduction has boosted the purchasing power of both traders and consumers. As a result, production has increased, and lakhs of people have gained employment.

Second, he pointed out, was that the Prime Minister's call for promoting "Swadeshi" (local products) reached every town and village. This campaign has encouraged people to buy Indian-made goods "Together, these factors have created tremendous buying sentiment in the market," he said.

KPraveen handelwal also said that traders across the country have decided to celebrate Diwali on October 20 this year. According to the Hindu scriptures, it was concluded that both Amavasya and Pradosh Kaal fall on October 20. So, Diwali should be celebrated on that day.