Diwali 2025 festival season boosts manufacturing and small traders in India

Diwali Sales Boom: Domestic Power Drives the Numbers

This Diwali wasn’t just about lights and sweets. It was a clear sign that Indian shoppers are choosing locally made goods. Diwali sales hit a record ₹6.05 lakh crore, up about 25% from last year’s ₹4.25 lakh crore. That jump isn’t just big on paper; it shows a real shift in taste. A striking 87% of consumers picked Indian-made products over imports, and Chinese items saw demand drop as Indian manufacturers stepped up.

The split across the market supports this story. Mainline retail, especially non-corporate and traditional markets, accounted for about 85% of total trade. That’s a strong comeback for physical markets and small traders, not just big stores. Sector-wise, groceries and FMCG made up around 12% of sales, while gold and jewelry contributed about 10%. Electronics, consumer durables, and ready-made garments also played significant roles. Even the services side—packaging, hospitality, and delivery—made a solid contribution of around ₹65,000 crore.

And the wave didn’t stop at buying goods. Trader and consumer confidence rose to decade-highs, helped by GST relief, stable prices, and higher disposable income. All of this supported an estimated 40 lakh temporary jobs in logistics, transport, and retail. The Confederation of All India Traders flagged the non-corporate, non-agricultural sector as a key growth engine and urged policy tweaks like simpler GST compliance, easier credit for small businesses, and better infrastructure in tier-2 and tier-3 cities to push India’s self-reliance push even further.

Festive Markets React: A Short Pause, Then a Rally

As Diwali celebrations continued, the stock world hit a brief pause. The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) were closed on Balipratipada, with normal trading resuming the next day. Muhurat trading showed calm volumes but healthy participation, and markets carried optimism into Samvat 2082.

Analysts expect a rebound in earnings and a longer-term revival. The calls focus on cyclical and structural growth: banking, capital markets, consumption, manufacturing, and electronics. The sense is that policy support—plus liquidity moves like RBI rate cuts—could nudge earnings growth to about 8% in FY26 and around 16% in FY27. Even with a cautious year behind, valuations around 20 times FY26 earnings are seen as reasonable.

For traders, the mood is about timing the flow. FIIs returned with fresh money, helping the Sensex and Nifty claw back some ground after a tough patch. The path isn’t perfectly smooth, but the festive start has set a positive tone for the next few quarters.

From Shop Floors to Stock Floors: Real People, Real Impact

What does all this mean for you, the reader in a big or small Indian town? It’s a reminder that the domestic market isn’t a distant dream—it’s feeding real jobs, real salaries, and real choice into households. The surge in Indian-made goods signals manufacturers investing in better supply chains and quality, which should translate into steadier prices and more reliable availability of everyday items.

For small traders, the call is simple: stay lean, keep credit flowing, and push for infrastructure in your city. A strong domestic market works best when cash, credit, and logistics don’t bottleneck. The government’s push through GST simplification and tax relief, plus RBI’s liquidity moves, can help sustain this momentum.

This festive season could set the tempo for India’s growth cycle, turning cheerful celebrations into durable momentum for households and small traders alike.