Diwali Bonanza: China Loses Out as India Records ₹6 Lakh Crore Swadeshi Sales

Business News: Diwali 2025 turned into a historic festival for Indian markets. Consumers overwhelmingly chose Indian-made products instead of Chinese imports. According to the Confederation of All India Traders (CAIT), the total sales this Diwali touched ₹6.05 lakh crore, with ₹5.40 lakh crore spent on goods and ₹65,000 crore on services. This marks a 25% jump compared to last year’s numbers, showing how Indian buyers are strengthening the domestic economy and shaping a new consumer mindset.

Swadeshi sentiment drives consumer choices

The CAIT survey highlights that 87% of customers prioritized Indian products over foreign ones this year. That means 87 out of every 100 buyers picked local goods. Prime Minister Narendra Modi’s ‘Vocal for Local’ and ‘Swadeshi Diwali’ campaigns inspired this change in shopping behavior. With strong patriotic sentiment, Chinese products witnessed a sharp fall in demand, while Indian traders celebrated higher sales and rising customer loyalty.

Small markets emerge as big winners

It wasn’t just metro cities that saw booming sales. From Delhi’s Chandni Chowk to Tier-2 and Tier-3 towns, traditional and non-corporate markets accounted for nearly 85% of total trade. This proves that India’s real economic power lies with small retailers and local vendors. They played a crucial role in keeping the money circulating within the country while reducing dependency on imported products.

What sold the most this Diwali

The festival season brought mixed success across different sectors. Grocery and FMCG led the chart with 12% of total sales. Gold and jewelry contributed 10%, electronics 8%, consumer durables 7%, readymade garments 7%, and gift items 7%. Home décor and furniture together formed 10%, while sweets and snacks accounted for 5%. Puja essentials, dry fruits, bakery products, and footwear added smaller shares but highlighted how festive spending covered both traditions and modern lifestyle needs.

Service sector sees massive expansion

Diwali was not just about goods but also about services. From packaging and logistics to travel, cab services, hospitality, decoration, event management, and delivery networks, the services sector recorded ₹65,000 crore worth of business. This shows how India’s festive economy has diversified. The festival provided direct earnings to lakhs of people, spreading economic benefits beyond retail shops and into industries that support modern-day celebrations.

Modi hailed as brand ambassador of Swadeshi

CAIT General Secretary Praveen Khandelwal said that Prime Minister Modi has emerged as the strongest ambassador for swadeshi values. His policies on GST simplification, ‘Vocal for Local,’ and Atmanirbhar Bharat pushed both consumers and traders toward Indian-made products. This leadership created an atmosphere of trust in local markets and contributed directly to the record-breaking sales witnessed during Diwali 2025.

China sidelined, India celebrates self-reliance

This festive season marked a turning point. Indians showed they no longer rush for cheaper imports but proudly support homegrown goods. By rejecting Chinese items and embracing local products, consumers gave traders a reason to celebrate. The festival lights this year symbolized not just joy but also the growing strength of India’s self-reliant economy, promising even greater growth in the years ahead.