Record Rs 5 Lakh Crore Trade Expected for Diwali 2025: India's Largest Economic Fair Since Independence

Around 13 percent of festive expenses are likely to be allocated to food and groceries during the upcoming Diwali celebration (Representational)

India is anticipated to experience its most significant festive business season ever this Diwali, with total trade expected to surpass Rs 5 lakh crore, according to information from the Confederation of All India Traders (CAIT).

BJP MP and CAIT General Secretary Praveen Khandelwal told NDTV that Diwali 2025 could be characterized as the largest "economic fair" in India's history since gaining independence.

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

He mentioned that CAIT conducted extensive surveys across more than 35 cities and received online feedback from over 100 cities through various trader associations.

Based on customer footfall observed during the Navratri season, the confederation projects that Rs 4.75 lakh crore worth of trade will occur in goods and retail sectors alone, setting a new 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," added Khandelwal.

According to CAIT's analysis, this year's Diwali spending is expected to encompass numerous sectors. Approximately 13 percent of festive expenditures will likely go toward food and groceries, with 12 percent allocated to textiles and garments, as reported by ETV Bharat.

Additional key spending areas include electronic goods (8 percent), gift items (8 percent), cosmetics and personal care (6 percent), and furnishing and furniture (4 percent).

Smaller proportions of spending are anticipated for fruits and dry fruits (3 percent), sweets and namkeen (4 percent), electrical items (4 percent), home decor (3 percent), utensils and kitchenware (3 percent), pooja items (3 percent), and confectionery and bakery products (2 percent).

The most substantial share, 24 percent, is forecast to go toward miscellaneous goods, encompassing automobiles, toys, packaging, stationery, travel, and various other items.

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

Elaborating on the factors behind this record-breaking sales projection, Praveen Khandelwal identified two major reasons for the surge in trade this year. First is the government's recent reduction in GST rates, which has enhanced the purchasing power of both traders and consumers. This has consequently boosted production and created employment opportunities for lakhs of people.

Second, he highlighted that the Prime Minister's call to promote "Swadeshi" (locally made products) has reached every town and village across the country. This campaign has motivated people to purchase Indian-made goods.

"Together, these factors have created tremendous buying sentiment in the market," he explained.

Khandelwal also mentioned that traders throughout the country have collectively decided to celebrate Diwali on October 20 this year. According to Hindu scriptures, both Amavasya and Pradosh Kaal fall on October 20, making it the appropriate day to celebrate Diwali.