Indian Goods Boosts Diwali Sales: Chinese Product Demand Dips by Over ₹1 Lakh Crore
With Diwali festivities in full swing, Indian consumers are shifting towards locally-made goods, pushing festive season sales to new highs and reducing demand for Chinese imports. The Confederation of All India Traders (CAIT) has projected a whopping ₹4.25 lakh crore in sales across India during this Diwali season, with an expected ₹75,000 crore turnover in Delhi alone.
Diwali Boosts Indian Product Sales
Local businesses, especially in Delhi and other major cities, are seeing a surge in demand for Indian-made goods. Retail and wholesale traders have stocked up on various products, including gifts, clothes, jewelry, electronics, furniture, and religious decor, to cater to consumers who are increasingly choosing domestic items over imported ones.
CAIT’s projections align with survey findings from LocalCircles, which show that gifting has reached peak popularity this Diwali. With urban Indians estimated to spend ₹1.85 lakh crore on festive shopping, Indian-made products are particularly popular for gifting. The survey reveals a breakdown in consumer preferences, showing 53% of shoppers prefer gifting traditional sweets, baked goods, or chocolates, while 48% choose dry fruits. Other popular gift items include candles, incense, kitchen appliances, and home decor.
Consumer Spending on the Rise
From September to October, Indian consumers have already spent over ₹1.2 lakh crore on festive purchases, according to LocalCircles. Many are opting for local products, and businesses are well-prepared to meet the demand.
Decline in Demand for Chinese Goods
As consumers are drawn to Indian-made goods, the demand for Chinese products has notably decreased. CAIT’s Secretary, Praveen Khandelwal, estimates that Chinese imports could see a drop in business worth approximately ₹1 lakh crore this festive season. A mix of consumer preference for Indian-made goods and ongoing geopolitical tensions has likely contributed to this shift.
Prime Minister Narendra Modi’s call to embrace local products in his “Mann Ki Baat” broadcasts has encouraged many consumers to seek out Indian-made options. As a result, India’s bilateral trade with China has decreased, reaching ₹95,847 crore in 2022-23 compared to nearly ₹97,000 crore in 2021-22.
Historical Growth in Diwali Sales
CAIT data highlights a pattern of rising sales during Diwali over the past several years. In 2017, festive season sales amounted to ₹43,000 crore, which rose to ₹50,000 crore in 2018 and peaked at ₹60,000 crore in 2019. Even during the COVID-19 pandemic, 2020 saw sales increase to ₹72,000 crore, despite restrictions and a downturn in consumer spending.
According to reports, traders in Delhi have already completed sales worth ₹25,000 crore this season, with expectations of reaching ₹75,000 crore by the end of the festival. Nationwide, the heightened demand for Indian products promises a significant economic boost for local businesses.
This trend is shaping consumer behavior, indicating a strong future for Indian businesses, particularly during festivals when domestic purchases spike.
