The Trader’s body Confederation of All India Traders (CAIT) has announced that it has registered about Rs.72, 000 crore sales this Diwali across the major markets in the country. This festive season the sales rose by more than 10 percent year-on-year hinting at good business prospects for small businesses. Also, the CAIT claims to represent around tens of millions of firms throughout the country, reveals the sales of its member during the one-month festive season that came to end on Saturday, and has highlighted the increased sales this Diwali.

Praveen Khandelwal, Secretary-General, CAIT told Reuters, "People didn't purchase anything in the last eight months except essentials. Hence people had enough surplus money, and a portion was spent on Diwali festivities."

CAIT members also include the retailers who sell everything from electrical items to furniture and footwear. The trade body had collected the sales data from 20 cities.

In a statement, CAIT says, "As per reports gathered from 20 different cities which are also considered to be the leading distribution centers of India, it is expected that Diwali festive sales generated a turnover of about Rs.72,000 crores and gave China the expected loss of Rs.40,000 crore,"

Despite the positive report, the country’s economy has witnessed a slow-paced growth in over a decade during the year to the end of March, is more likely to enter a technical recession for the first time since India’s independence in 1947. However, the RBI has also predicted a contraction of about 8.6 percent in the July-September quarter, on the back of a 23.9 percent contraction in the April-June quarter.

Yet, the country could revive its growth in the ongoing quarter that would terminate by the end of December 2020. If the momentum gained in September and October is sustained, says the RBI. Furthermore, the central bank has states, "optimism that the revival of economic activity is stronger than the mere satiation of pent-up demand.”

Assuring that similar consumption patterns could revive growth much earlier than expected.