India’s Festive Retail Sales Hit Record ₹6.05 Lakh Crore: FM Sitharaman Credits GST Reforms for Boosting Growth

New Delhi, Oct 2025 : India’s festive season retail sales have touched an all-time high this year, reflecting the strength of consumer demand and the positive impact of recent economic measures, including GST rate rationalisation, Union Finance Minister Nirmala Sitharaman said on Friday.

Speaking at the inaugural ceremony of the new CGST Bhawan in Ghaziabad, the Finance Minister said the next phase of Goods and Services Tax (GST) reforms would make the system more efficient, equitable, and growth-oriented.

“I am confident that with continued reforms, dedication and teamwork, we will reach new heights in revenue, compliance and service delivery,” Sitharaman said, adding that the upcoming generation of GST reforms will further simplify processes and improve the taxpayer experience.

According to data released by the Confederation of All India Traders (CAIT), retail sales during Diwali 2025 reached ₹6.05 lakh crore, a sharp 25 per cent increase over last year’s ₹4.25 lakh crore. Of this, about ₹5.40 lakh crore was spent on goods and ₹65,000 crore on services, making it the largest Diwali business ever recorded in India’s trading history.

“What do these numbers tell us? They tell us that our economic policies — including the recent GST rate rationalisation — are having a meaningful impact,” the Finance Minister said.

Encouraging officials and businesses to maintain reform momentum, Sitharaman added: “Keep up the good work, maintain the momentum of reforms, and always remember that our ultimate goal is to make life easier for the honest taxpayer.”

She stressed that the ‘next-generation GST’ must reflect trust and respect towards taxpayers. “They should feel that they are being honourably treated — because they are the contributors to the nation’s progress,” she remarked.

Referring to the Prime Minister’s initiative, Sitharaman said, “The ‘#GSTBachatUtsav’ launched by Prime Minister Narendra Modi was indeed a ‘Double Diwali’ — one for the festivities and one for the savings it brought to consumers.”

Meanwhile, the e-commerce sector also reported robust growth during the festive season. Online sales volumes grew by 24 per cent year-on-year, while gross merchandise value (GMV) rose by 23 per cent, according to CAIT estimates.

The traders’ body noted that 72 per cent of respondents in its national survey credited GST rate cuts on daily-use products, footwear, home décor, and consumer durables as a key factor driving higher festive sales.

The Finance Minister concluded by reaffirming the government’s commitment to continuing economic reforms that promote transparency, ease of doing business, and equitable growth.