New Delhi, Oct 21 : Buoyed by GST reforms and strong consumer demand, India saw Diwali sales reach Rs 5.40 lakh crore in goods and about Rs 65,000 crore in services across the country, industry figures showed on Tuesday, marking the highest-ever festival season turnover in the country's retail and trading history.

This marks a 25 per cent increase over 2024 festive sales (Rs 4.25 lakh crore) from the Navratri to Diwali period, according to CAIT Research and Trade Development Society, the research wing of the Confederation of All India Traders (CAIT).

Mainline retail accounted for nearly 85 per cent of total sales, indicating a strong revival of the brick-and-mortar market, the survey showed.

The reduction in GST rates across key consumer and retail categories such as confectionery, home decor, footwear, and ready-made garments, consumer durables and daily use items significantly improved price competitiveness and increased purchase momentum.

About 72 per cent of surveyed traders reported higher sales volumes directly attributable to reduced GST, according to the survey.

Consumers expressed greater satisfaction with stable prices amid festive demand, aiding consumption continuity post-Diwali.

The non-corporate and non-agricultural sector has emerged as a central pillar of India's growth, driven by 9 crore small businesses, crores of small manufacturing units and the largest base of consumers.

"The Diwali trade surge is estimated to have generated temporary employment for nearly 50 lakh people across logistics, transport, retail assistance, packaging, and delivery," the data showed.

Enhanced rural and semi-urban purchasing power contributed nearly 28 per cent of overall sales, highlighting deep economic penetration beyond metros.

"Diwali 2025 has set a new benchmark in India's retail and trading economy - symbolising the fusion of tradition, technology, and trust in Indian enterprise," said CAIT, adding that this year's Diwali stands as a major milestone in building an Aatmanirbhar Bharat under the visionary leadership of Prime Minister Narendra Modi.

/IANS