What Factors Drove the Surge in Diwali Sales?
Click to start listening
Synopsis
India's festive season saw record-breaking sales across various sectors, marking a significant boost to the economy. With a surge in consumer confidence and strategic tax reforms, experts predict a promising future for domestic industries. Dive into the details of this remarkable economic revival during Diwali.
Key Takeaways
- Record sales during Diwali reached Rs 5.40 lakh crore.
- 85% of festive sales came from the retail sector.
- Sales of consumer electronics and automobiles rose by 25-30%.
- GST reforms and tax reliefs significantly boosted consumer spending.
- Strong purchasing power was evident from Navratri to Diwali.
New Delhi, Oct 22 (NationPress) This year, India has witnessed an exceptional festive season, with impressive sales in consumer goods, automobiles, jewellery, handicrafts, and decorative items soaring during Diwali. This surge indicates a revival in consumer confidence and economic vitality, as highlighted by economists on Wednesday.
Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings, emphasized that the increase is indicative of a robust rebound in domestic demand and a rising inclination towards Indian-made products. “There has been a noteworthy increase in the sales of consumer electronics, textiles, jewellery, handicrafts, and decorative items. This surge symbolizes growing consumer optimism that has significantly boosted domestic industries,” he remarked.
Sharma also pointed out that recent GST reforms and income tax relief measures have been instrumental in enhancing festive expenditure. “We anticipated that the Diwali season would have a positive impact on the economy. This year, goods worth nearly Rs 5.40 lakh crore were transacted, with sales in consumer electronics and automobiles increasing by 25–30 percent,” he stated.
Similarly, economist Parambir Kumar Sarkar noted that the GST rate cuts announced in September lowered prices for FMCG, consumer electronics, and leather goods, paving the way for strong festive demand. “The sales data from Navratri to Diwali has been promising, showcasing robust purchasing power among consumers,” he explained.
Experts indicate that around 85 percent of total festive sales originated from the retail sector, with the offline market exhibiting particularly strong growth.
The Confederation of All India Traders (CAIT) reported that total sales during the festive season—from Navratri to Diwali—reached an unprecedented Rs 5.40 lakh crore, marking a 25 percent increase from last year's Rs 4.25 lakh crore. Additionally, consumers utilized services worth approximately Rs 65,000 crore during this timeframe.
Industry analysts are optimistic that this festive surge—driven by reduced taxes and increased disposable incomes—could sustain India's economic growth in the upcoming quarters, providing essential momentum to domestic manufacturing and retail.
Point of View
I recognize the significance of the recent surge in Diwali sales, reflecting a resilient economy and revitalized consumer sentiment. The growth in domestic demand and the positive impact of tax reforms highlight the potential for sustained economic momentum in the nation. Our commitment remains steadfast in supporting and reporting on the progress of India’s economic landscape.
NationPress
22/10/2025
Frequently Asked Questions
What were the key factors behind the increase in Diwali sales?
Key factors included a boost in consumer confidence, GST reforms, and income tax reliefs that encouraged festive spending.
How much did the total sales amount to during the festive period?
Total sales during the festive period reached approximately Rs 5.40 lakh crore, marking a 25% increase from last year.
Which sectors saw the most growth during Diwali?
Sectors such as consumer electronics, automobiles, textiles, jewellery, and handicrafts experienced significant growth.
What impact did GST reforms have on consumer spending?
GST reforms led to reduced prices of various goods, enhancing consumer purchasing power and encouraging festive spending.
What is the outlook for India’s economy following this festive season?
Experts believe that the surge in festive sales could sustain economic growth in the coming quarters, benefiting domestic manufacturing and retail.
