India’s festival season is not just about lights, colours, and rituals, it’s also one of the biggest growth engines of the Indian economy. Every year, festivals such as Diwali, Navratri, and Chhath Puja trigger massive consumer spending across retail, jewellery, FMCG, e-commerce, travel, and MSME sectors.
According to reports from the Confederation of All India Traders (CAIT), Navratri and Diwali 2025 sales reached a record Rs. 6.05 lakh crore, while regional festivals like Chhath Puja 2025 contributed another Rs. 50,000 crore to India’s festive trade.
These numbers highlight how deeply cultural traditions and modern commerce are now intertwined and creating a “festival economy” that sustains jobs, boosts GDP, and supports millions of small traders and artisans.
Let’s unwrap this festival economy of India through following sections and understand how these Indian festivals make us a resilient consumption based economy (around 70% of the GDP). It also makes us economically safe against global trends, sanctions, tariff wars, etc.
The Big Picture: India’s Growing Festival Economy
The “festival season retail boost for the Indian economy” has become a recurring highlight in the country’s economic calendar. The Diwali to Chhath Puja window now rivals year-end sales in Western economies in scale and intensity.
Key Drivers of Festive Season Sale and Higher Consumption in 2025
- Emotional & cultural motivation to buy new items during festivals.
- Expanding e-commerce accessibility and festive discounting.
- Lower GST rates, Vehicle Scrappage Policy, Upcoming wedding season, and consumer friendly brand offers
- Focus on Made in India products, local business support, and a thriving MSMEs and Startups across India
- Hybrid retail business models merging online convenience with in-store experience
In 2025, Indian festival spending grew 20–25% year-on-year, confirming that sentiment-driven consumption remains a reliable economic catalyst.
Source: Firstpost
Diwali 2025: India’s Retail & E-Commerce Powerhouse
Total trade: Rs. 6.05 lakh crore (approx. US $68.8 billion).
Goods: Rs. 5.40 lakh crore (approx. US $61.4 billion).
Services: Rs. 65,000 crore (Approx. US $7.4 billion).
This record-breaking Navratri, Diwali, Chhath Puja sale made 2025 one of the most profitable festival seasons ever for India’s retailers and manufacturers.
Sector-Wise Breakdown of Festive Sales in 2025
| Sectors/Industries | Share of Goods Trade | Approx Sale Value (in Rs. Crore) | Categories/Details |
| Grocery and FMCG | 12% | Approx. 64,800/- | Snacks, Packaged and Processed Food Items |
| Gold & Jewellery | 10% | Around 54,000/- | Cultural investments and Gifts |
| Electronics and Electricals | 8% | Approx. 43,200/- | Smart TCs, AC and Kitchen Items |
| Consumer Durables | 7% | Approx. 37,800/- | High Ticket Festive Buying |
| Readymade Garments | 7% | Approx. 37,800/- | Ethnic Wear and Festive Buying |
| Gifts | 7% | Approx. 37,800/- | Personal and Corporate Gifting |
| Home Decor/Furniture | 5% | Around 27,000/- | Home Improvements and Decor |
| Sweets and Bakery | 5% | Approx. 27,000/- | Traditional Mithais and Gifts |
E-commerce & Online Shopping
The e-commerce festival sales India segment grew YoY 25 % compared to 2024. Platforms like Flipkart, Amazon, Meesho and JioMart launched massive “Big Festive Sale” events like Flipkart’s “Big Billion Days (23% increase in YoY traffic)” and Amazon’s “Great Indian Festival (2.76 billion customer visits).”
- Online festive sales contributed Rs. 1 lakh crore plus to total trade.
- Categories: mobiles, electronics, fashion, home décor, and grocery.
- GST rationalisation (from 4 tax slabs to mainly 2 (5% and 18%) and faster logistics through Dedicated Freight Corridors boosted digital participation.
Automobiles & Consumer Durables
- According to the Federation of Automobile Dealers Association (FADA) Indian automobile sector saw unprecedented growth during the festival season 2025.
- YoY sales growth: 22% up for two wheelers, 23% more for passenger vehicles, and an increase of 15% for commercial vehicles.
- GST rate cuts, Vehicle Scrappage policy, festive demands, easy EMIs and offers drive purchases
- Brands such as Tata Motors, Maruti Suzuki, and Hyundai reported record bookings.
Jewellery and Gold
- Gold prices remained high, but demand surged 10 % YoY with 85,000 crore worth of sales only on Dhanteras.
- Consumers viewed gold as both a cultural must-buy and a stable investment.
- Urban buyers shifted toward branded jewellery, while Tier-II/III towns kept traditional jewellers busy.
Navratri: Regional Apparel, MSMEs & Cultural Commerce
Apparel and Textiles
The Navratri apparel market continues to be a vibrant sub-segment of India’s festive trade. Here’s how it performed in the festive season 2025.
- Navratri 2025 apparel & textile sales is estimated at Rs. 90,000 crore, marking a 25% jump from 2024.
- The demand has increased across metros, Tier 2, Tier 3 and rural areas.
MSMEs, Artisans & Handicrafts
- Traditional embroidery units in Kutch, Rajasthan, and West Bengal reported 20–25 % higher orders.
- Artisans producing bangles, jewellery, décor and puja items experienced strong festive margins.
- Digital marketplaces such as IndiaMART and Amazon Karigar played a key role in connecting artisans to buyers.
Events & Local Services
- Garba nights, Durga Puja Pandals, events, food stalls and cultural fairs contributed to short-term employment and service-sector revenue.
- Hotels, local transport, event management and sound-equipment rentals saw up to 30 % seasonal growth in western states.
- Durga Puja, Navratri and Garba Nights are major business generators for event organisers. Decorators, promotors, emcees, anchors, etc., create short term employment and business for event companies across India.
- Garba nights, crowd management, venue decor, private garba parties, large scale events (around 5000 people), etc., create significant business for event management companies.
According to a British Council’s 2021 report, the “Durga Puja Economy” contributes around 2.58% to West Bengal’s GDP, estimated at around Rs. 32, 377 crore in that year. In 2025, it was near Rs. 65,000 crore. (Source: Frontier)
Source: CNBC Awaaz
Chhath Puja: River Rituals & Regional Trade Impact
Chhath Puja is the most sacred parva for people of Bihar and Eastern UP (Uttar Pradesh). The four-day festival is the emotion of Bihar and Biharis living anywhere in India and the world.
Recognising the significance of Chhath, the worship of Sun and Nature, the Ministry of Culture convened a multinational nomination of Chhath Mahaparva for inscription on UNESCO’s Representative List of the Intangible Cultural Heritage of Humanity.
A high-level consultation was held at the Indira Gandhi National Centre of the Arts, New Delhi with senior diplomatic representatives of the UAE, the Netherlands, and Suriname to discuss the nomination on 16th September, 2025.
Chhath Puja 2025: Trade Value
The Chhath Puja trade impact for 2025 was estimated at Rs. 50,000 crore nationwide, marking a steady rise from Rs. 38,000 crore in 2024. (Source: Zee Business)
Major economic drivers: ritual goods, sweets, clothes and accessories, puja samagri, lights and diyas, local travel, intrastate and interstate travel, decoration, ghat preparation, and more.
Local Industry Growth
- Food & sweets (Thekua, fruits, sugarcane): up 30 % in sales during Chhath week.
- Clothing & ritual goods: ~20 % growth from 2024.
- Transport & logistics: surge in interstate train and bus bookings.
- Municipal & service spending: temporary jobs in ghat cleaning, decoration, and event management.
The festival creates a regional economic cycle that benefits thousands of micro-vendors, farmers, and local service providers.
Source: Dainik Jagran
Why the Festival Economy Matters.
GDP Contribution: The combined festival season adds around 2–3 % to India’s annual retail GDP contribution.
Reduces Impact of Global Trade Impact: Minimises impact of global trade challenges, tariff wars, unpredictable oil and gas trade, challenges due to ongoing wars in different parts of the world, and more.
Employment: lakhs of seasonal jobs in sales, logistics, tour & travels, pandal decoration, idol making, stalls, hospitality, artisanship, and event management.
MSME Growth: Festivals help small businesses (over 6.3 crore MSMEs) scale up through festive demand, launch new products, and expand their business.
Digital India: Online festive sales deepen digital inclusion among smaller retailers. Digital marketing agencies also get a good boost for their business with every brand try to catch maximum traffic.
Cultural Continuity: Economic growth is aligned with preserving India’s cultural and regional diversity.
Conclusion
The numbers speak for themselves, India’s festival economy is not only thriving but evolving. With Diwali trade crossing Rs. 6 lakh crore, Navratri apparel markets growing rapidly, and Chhath Puja strengthening regional commerce, festivals are now a key driver of India’s consumption-led growth story.
From MSMEs and artisans to major retailers and online marketplaces, everyone plays a part in this annual celebration of both culture and commerce, proving that when India celebrates, the economy shines brightest.
Frequently Asked Questions
What is the total size of India’s festival economy in 2025?
Around Rs. 6.5 to 7 lakh crore, combining Diwali, Navratri, and Chhath Puja spending.
Which festival generates the highest trade?
Diwali 2025, with sales worth Rs. 6.05 lakh crore, remains the largest contributor.
What is the Chhath Puja trade impact in 2025?
Around Rs. 50,000 crore nationwide, benefitting Bihar, Jharkhand and Delhi the most.
Which sectors benefit the most during festivals?
Retail, e-commerce, gold & jewellery, FMCG, apparel, and automobiles show the highest festive growth.
How can small businesses benefit from the festival economy?
By aligning promotions early, embracing online platforms, localising festive products, and offering combo offers or festival-themed deals.
