Diwali 2025: Tier-2 Cities Power 70% Surge In Artisan Sales Via ONDC Platforms

Image Source : ET Edge Insights

Diwali 2025 saw a 70% surge in local artisan sales via ONDC platforms, driven by Tier-2 cities. Handcrafted goods, quick commerce, and digital payments fueled festive e-commerce. The trend reflects a shift toward inclusive, decentralized retail, empowering small businesses and celebrating India’s cultural diversity through tech-enabled marketplaces.

India’s festive economy is witnessing a grassroots revival as Tier-2 cities drive a 70% surge in local artisan sales through ONDC (Open Network for Digital Commerce) platforms. From handcrafted décor to regional sweets, Diwali 2025 is redefining e-commerce with a focus on inclusivity and cultural authenticity.

Key Highlights From The ONDC Festive Boom

•⁠ ⁠Non-metro cities accounted for nearly three-quarters of total e-commerce volume this Diwali, with Tier-2 towns leading artisan product sales

•⁠ ⁠ONDC-enabled platforms facilitated direct-to-consumer access for weavers, potters, and sweet-makers, bypassing traditional retail middlemen

•⁠ ⁠Popular categories included terracotta diyas, handloom textiles, mithai hampers, and eco-friendly décor sourced from Rajasthan, Odisha, and Uttar Pradesh

•⁠ ⁠Logistics platforms like ClickPost handled over 4.25 crore shipments, with Tier-3 cities contributing more than 50% of festive order volumes

•⁠ ⁠Quick commerce and hyperlocal delivery models ensured same-day fulfillment, boosting consumer confidence in smaller towns

•⁠ ⁠Digital payment adoption and vernacular app interfaces helped onboard thousands of new sellers during the festive season

Strategic And Cultural Context

The ONDC ecosystem is democratizing digital commerce by enabling artisans and micro-entrepreneurs to reach national audiences. Diwali 2025 marks a turning point where local craftsmanship meets tech-enabled scalability, reinforcing India’s cultural economy.

Industry Insights

Retail analysts note that Tier-2 and Tier-3 cities are no longer passive markets—they are now growth engines for festive e-commerce. The success of ONDC reflects a broader shift toward decentralized retail, where regional identity and digital access converge.

Market Outlook

With ONDC expanding into food, fashion, and wellness categories, artisan-led commerce is expected to grow year-round. Government incentives and startup collaborations are likely to further strengthen the digital backbone of India’s small business sector.

Sources: Economic Times, Outlook Business

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