Diwali Shopping 2025

As the nation gets ready for one of its most significant festivals, Diwali, here’s a closer look at what’s shaping shopping trends this year. What’s on consumers’ minds? What are sellers planning? How are the recent GST changes influencing shoppers and retailers? And how big a role is AI playing in the way India shops? Read on to find out.

 Shopping preferences 

A little over half of the population (51.31%) prefers the convenience of online shopping this Diwali. That said, physical stores haven’t lost their charm completely. Shopping malls (15.92%) and brand-specific stores (7.84%) still appeal many.

 Total budget 

Budget decisions this year are more careful and practical. Most shoppers (31.47%) plan to spend between ₹15,000 and ₹40,000 on Diwali shopping.

Factors influencing shopping

An interesting trend emerged when we looked at what drives people’s shopping decisions. Product quality earned the highest overall score (average 4.56), while sustainability sparked stronger emotions with over a third of respondents (36%) rating it as “extremely important.”

 Preferred payment methods 

Digital wallets like Google Pay are the most popular mode of payment (49.06%), perhaps because they offer speed with security. Interestingly, most shoppers (20.51%) prefer paying in full rather than opting for installment plans (3.54%). The reason might be stay debt-free or avoid post-festive confusion.
Good old cash still holds its ground with 16.51% of respondents say it remains their preferred choice.

 Special focus : The GST Effect

The recent GST announcement has drawn mixed reactions from consumers. Here’s how it’s likely to influence Diwali shopping this year.

 Products categories affected 

According to consumers, the top three categories they’re more likely to buy this Diwali are:

• Everyday essentials

• Large electronic appliances

• Personal electronics

Retailer's lens

No shopping trends report would be complete without hearing from retailers.

More than half of the population (54%) of respondents who operate a store stated that they think their Diwali sales will significantly increase due to the recent GST changes. 

As for the products they think will sell the most, they too suggested that everyday essentials will likely have the biggest boost.

AI in shopping

AI has quietly woven itself into the Diwali shopping experience. 73% of respondents said they’ve encountered AI-related advancements while shopping.
The top mentions were AI-driven personalized recommendations, voice-assisted shopping (like Alexa or Google Assistant), and virtual chatbots for product queries or assistance.

The Human Touch 

We dug a little deeper to understand how much human interaction still matters in this increasingly digital world, and the results didn’t disappoint.
Almost half of respondents (49.48%) said it’s good to have a human representative, but not essential.
However, the second most popular choice (38.64%) came from those who said it’s extremely important and they wouldn’t trust a brand that relies only on chatbots without human support.

 Gifting 

For most Indians Diwali is about coming together and celebrating bonds, and gifting is at the heart of it. If you are scratching your head on what to gift your friends and family, we've got you covered. We asked what people what they'd be most excited to receive as a gift and this is what they had to say.

Branded clothing, electronic appliances, and jewellery and fashion top the charts!

Closing thoughts
Overall, data suggests that sales and purchases will be on the higher side this Diwali, especially with recent GST reforms . AI is everywhere, and shopping is no exception. But even as algorithms get smarter, shoppers haven’t lost their need for the human touch.

Both shoppers and retailers seem optimistic about Diwali 2025. Here’s to brighter homes, better deals, and happier shopping. Happy Diwali!

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