India’s upcoming Diwali festival is expected to register record-breaking retail sales this year, marking the strongest festive season performance in a decade. The textiles and garments sector is forecast to be one of the main beneficiaries, even as potential challenges from the global market loom for exporters.
According to estimates from the Confederation of All India Traders (CAIT), Diwali trade could surpass Rs 4.75 lakh crore ($53.50 billion). Recent reductions in GST and Prime Minister Narendra Modi’s ‘Vocal for Local’ (Swadeshi) campaign are expected to give a significant boost to domestic traders, opines Pravin Khandelwal, Secretary, CAIT
Khandelwal states, this year's Diwali is likely to ‘illuminate homes and brighten the fortunes of small traders, manufacturers, artisans, and service providers across India.’
Markets across the country, from traditional bazaars to large shopping malls, are projected to see strong consumer turnout. Textiles and garments are expected to account for roughly 12 per cent of total festive expenditure, driven by a growing preference for domestically and locally made products. This momentum reflects the success of the Atmanirbhar Bharat (self-reliant India) initiative, with locally produced Swadeshi textiles expected to dominate sales.
According to industry analysts, the textile sector faces a mixed outlook. While robust domestic demand is certainly expected to lift sales, potential US tariffs on textile imports could put a drag on export performance. In response, manufacturers in major textile hubs such as Surat, Ludhiana, and Tiruppur are reportedly ramping up production to meet the huge festive demand at home and offset any possible international headwinds.
Emphasizing on the festival’s wider importance, Khandelwal states, Diwali is not just about lighting lamps but about powering the entire economic ecosystem of Bharat.
Overall, the Diwali season is set to highlight the resilience of India’s domestic retail market. Strong consumer sentiment and patriotic purchasing are expected to sustain growth, reinforcing the growing importance of local demand in supporting the textile and garment industry against international pressures.
