GST Reforms Power Historic Diwali Sales; UPI, Credit Cards Lead Digital Payments Surge Non-corporate retail alone accounted for Rs 5.4 lakh crore, while services including packaging, hospitality, travel, and logistics added another ₹65,000 crore, reflecting robust demand across the economy.

India's festive economy witnessed record-breaking growth this Diwali, with total goods and services sales crossing Rs 6.45 lakh crore, a 48% jump from last year, according to CAIT Research & Trade Development Society. Non-corporate retail alone accounted for Rs 5.4 lakh crore, while services including packaging, hospitality, travel, and logistics added another ₹65,000 crore, reflecting robust demand across the economy.

Praveen Khandelwal, Secretary General of CAIT, in an exclusive interaction with Entrepreneur India, attributed this surge to the GST reforms and structural policy push under PM Modi: "Absolutely. The bumper sales witnessed this Diwali are a strong reflection of the positive impact of the GST reforms… GST has helped formalize India's retail sector, ensuring smoother inter-state trade and reducing tax burden complexities."

Digital Payments Drive Festive Consumption

UPI continued its dominance, averaging 737 million daily transactions during Dhanteras to Diwali, a 30% increase from last year, with total transaction value crossing ₹87,569 crore. Credit cards also powered e-commerce, posting 22% YoY growth, while debit cards and prepaid wallets continued to decline, highlighting a shift toward credit-based digital spending.

On the Diwali sales trend, Khandelwal added: "This year's Diwali sales have been truly historic. Across the country, traders have reported record-breaking demand across almost every segment… The strong revival of domestic trade demonstrates that India's internal economy remains robust, dynamic, and full of potential."

Swadeshi Sentiment

The "Vocal for Local" campaign resonated strongly, with 87% of consumers preferring Indian-made goods. Sales of domestic products surged by 25%, while demand for imported goods, especially from China, declined across major markets. Rural and semi-urban markets contributed 28% of overall sales, reflecting deep economic penetration beyond metropolitan cities.
"The Diwali sales surge clearly indicates strong economic momentum and renewed consumer confidence… The vibrant trade activity this festive season shows that India's domestic market continues to be the backbone of our economy, supporting millions of livelihoods and propelling overall growth," Khandelwal added.

Outlook for Wedding Season

With the wedding season around the corner, analysts and traders expect another wave of strong demand across jewellery, garments, electronics, home décor, and hospitality.

"The outlook for the upcoming wedding season is extremely positive… Consumers are showing strong inclination towards swadeshi products—reflecting the growing sense of national pride and trust in Indian goods," Khandelwal said.

Policy Tailwinds

The GST rate rationalisation from September has made key consumer goods more affordable, while digital payment adoption and formalisation of retail have strengthened the Ease of Doing Business ecosystem. Rising disposable incomes and moderation in inflation also helped sustain consumer confidence, making India's non-corporate retail sector a central growth engine.

The festive surge not only highlights India's resilience in domestic consumption, but also signals the growing impact of policy-driven reforms, digital payments, and swadeshi sentiment on the national economy. Analysts predict that this robust momentum will continue into the winter and wedding season, benefiting small businesses, traders, and employment generation across sectors.