Finance Minister Nirmala Sitharaman announced on Wednesday that Diwali sales reached 6.05 trillion rupees this year, the highest total ever recorded for India's trading sector. The Confederation of All India Traders reported that merchandise accounted for 5.4 trillion rupees while services brought in 650 billion rupees. Sales climbed 25 percent compared with last year's festive period between Navratri and Diwali, when merchants recorded 4.25 trillion rupees in revenue.
Traditional stores captured 85 percent of transactions, showing brick-and-mortar retail remains strong across the country. Lower goods and services tax rates on sweets, decorations, shoes, clothing and household items made products more affordable and encouraged shoppers to buy more. Survey data showed 72 percent of merchants attributed increased business directly to the tax reductions that improved their pricing advantage.
The festive shopping boom created temporary jobs for about 5 million workers in shipping, transportation, store operations, packaging, and delivery services. Purchases from villages and smaller cities made up 28 percent of overall sales, demonstrating economic growth beyond major metropolitan areas. The trade group said the results mark progress toward building a self-reliant India under Prime Minister Narendra Modi's economic policies.
