The government’s ‘vocal for local’ initiative has resulted in Chinese businesses staring at a massive loss of at least Rs 1.25 lakh crore this Diwali, as the sales of Chinese goods related to the five-day festival have considerably diminished, the Confederation of All India Traders (CAIT) said on Tuesday. 

As Diwali festivities began on a positive note this week, retail trade on Dhanteras alone is estimated to touch Rs 60,000 crore, according to Praveen Khandelwal, CAIT General Secretary and Chandni Chowk MP.

“This Diwali, the ‘vocal for local’ initiative is fully visible in the markets because almost all the purchases being done are Indian goods. According to an estimate, due to the non-sale of Chinese goods related to Diwali, China is facing a loss of about Rs 1.25 lakh crore,” Khandelwal said in a statement.

CAIT has urged businesses across the country to help women, potters, artisans and others, who are producing Diwali-related items, increase their sales.

According to Pankaj Arora, national president of All India Jewellers and Goldsmith Federation (AIJGF), there has been a huge sale of gold and silver on Dhanteras.

“On Dhanteras, gold worth about Rs 20,000 crore and silver worth about Rs 2,500 crore were purchased across the country,” said Arora.

There are about 2 lakh jewellers registered with the Bureau of Indian Standards (BIS), who sold about 25 tonnes of gold worth Rs 20,000 crore and 250 tonnes of silver was sold across the country.

Last year, the price of gold was Rs 60,000 per 10 grams, which is now more than Rs 80,000. The price of silver last year was Rs 70,000 which has now crossed Rs 1 lakh.

Therefore, despite the decline in sales in weight, sales in currency terms have increased.

Apart from this, there was also a huge demand for old silver coins which were sold at Rs 1,200 to Rs 1,300 per piece almost across the country.

According to the India Bullion and Jewellers Association Ltd. (IBJA), the price of 24 carat gold remains at Rs 78,850 per 10 grams.