The Unified Payments Interface (UPI) witnessed an unprecedented spike during this year’s Diwali festivities, processing 754 million transactions worth Rs 1.02 lakh crore on October 18, Finance Minister Nirmala Sitharaman said on Thursday. This marks the highest single-day tally on the platform, reflecting a surge in consumer spending following recent GST rate cuts.
During the three-day festive period from Dhanteras to Diwali, UPI recorded an average of 736.9 million transactions daily, up from 647.46 million during the same period last month, according to the Finance Minister.
“It has been a cracker of a Diwali for retailers this year as GST rate cuts have boosted consumption, enabling the middle class to add more items to their shopping bags this festive season,” Sitharaman remarked. She noted that both mass and premium market segments, from lab-grown diamonds and casual wear to home décor products, experienced strong demand.
The Finance Minister attributed the robust festive spending to the implementation of GST 2.0, which she said has stimulated India’s growth by enhancing household purchasing power, simplifying business operations, and streamlining tax administration. “By rationalising slabs and lowering rates across a range of consumer goods, the reform has delivered tangible savings for households, freeing up disposable income and helping stimulate demand,” she added.
According to the Confederation of All India Traders (CAIT), total Diwali sales reached a record Rs 6.05 lakh crore this year, a 25 per cent increase over the Rs 4.25 lakh crore recorded during the Navratri to Diwali period in 2024. The Research and Trade Development Society, CAIT’s research wing, described this as the highest festive sales in India’s trading history.
Mainline retail accounted for nearly 85 per cent of total sales, underscoring a revival of brick-and-mortar shopping. Key consumer categories benefiting from GST rate reductions included confectionery, home décor, footwear, ready-made garments, consumer durables, and daily-use items. About 72 per cent of surveyed traders reported higher sales volumes directly attributable to reduced GST rates, reflecting increased price competitiveness and purchase momentum.
Consumers reportedly expressed satisfaction with stable prices during peak demand, contributing to sustained consumption even after Diwali. The non-corporate and non-agricultural sector, comprising over 9 crore small businesses and countless small manufacturing units, continues to play a pivotal role in driving India’s economic growth.
This record festive spending and high UPI activity highlight the combined impact of fiscal reforms and rising household consumption on India’s expanding retail economy.
