Blitz Bureau
NEW DELHI: Finance Minister Nirmala Sitharaman on October 22 highlighted the surge in Diwali sales this year which touched a record Rs 6.05 lakh crore, driven by GST rate cuts and strong demand for ‘swadeshi’ products. She cited the statement of the Confederation of All India Traders (CAIT) which estimated this year’s Diwali sales comprising Rs 5.4 lakh crore in goods and Rs 65,000 crore in services. This marks a 25 per cent jump over the 2024 festive sales of Rs 4.25 lakh crore from the Navratri to Diwali period and is the highest-ever sales in India’s trading history, according to Research and Trade Development Society, the research wing of CAIT.
Sitaraman said that mainline retail accounted for nearly 85 per cent of total sales, indicating a strong revival of the brick-and-mortar market. “The reduction in GST rates across key consumer and retail categories such as confectionery, home decor, footwear, and ready-made garments, consumer durables and daily use items significantly improved price competitiveness and increased purchase momentum,” she added . About 72 per cent of surveyed traders reported higher sales volumes directly attributable to reduced GST, according to the survey. Consumers expressed greater satisfaction with stable prices amid festive demand, aiding consumption continuity post-Diwali.
The non-corporate and non-agricultural sector has emerged as a central pillar of India’s growth, driven by 9 crore small businesses, crores of small manufacturing units and the largest base of consumers. “The Diwali trade surge is estimated to have generated temporary employment for nearly 50 lakh people across logistics, transport, retail assistance, packaging, and delivery,” the data showed. Enhanced rural and semi-urban purchasing power contributed nearly 28 per cent of overall sales, highlighting deep economic penetration beyond metros.
