India is witnessing one of its biggest spending waves in years, with festive and wedding season sales projected to surpass ₹7 trillion in 2025, buoyed by recent Goods and Services Tax (GST) reductions, according to government data.
Officials said the timing of the GST cuts — just ahead of the festive and wedding season — proved crucial, reviving consumer sentiment and stimulating demand across key sectors.
Festive Economy Reignited
The GST rate reductions have not only lowered prices but also revitalised local supply chains and boosted the Made-in-India movement.
Digital payments surged nearly tenfold overnight, jumping to ₹11.31 trillion on September 22 from ₹1.18 trillion a day earlier, as consumers rushed to capitalise on GST savings.
Major cities witnessed record spending — Delhi alone clocked ₹75,000 crore in festive sales, while Ahmedabad saw a 10% rise in cotton fabric demand following GST cuts on garments priced below ₹2,500.
Auto Sector Leads the Charge
The automobile industry reported its strongest Navratri sales in a decade.
- Maruti Suzuki doubled its sales from last year, delivering 1.65 lakh cars in eight days, including a record 30,000 vehicles on Ashtami — the company’s highest single-day tally in 35 years.
- Mahindra & Mahindra saw SUV sales surge 60%, led by the XUV700 and Scorpio N.
- Tata Motors retailed over 50,000 vehicles, while Hyundai said SUVs now account for 72% of total sales.
- Two-wheeler majors Hero MotoCorp and Bajaj Auto also reported double the showroom footfall compared to last year.
Consumer Electronics Witness Record Demand
GST cuts triggered a sales boom in consumer electronics, with televisions, refrigerators, and washing machines registering 40–45% growth, led by premium models.
Haier reported 85% sales growth, nearly selling out its 85-inch and 100-inch Diwali TV inventory.
Reliance Retail saw 20–25% higher turnover, driven by large-screen TVs and smartphones, while Vijay Sales, LG, and Godrej Appliances all posted strong double-digit growth.
From Onam to Navratri, festive purchases now contribute 40–45% of India’s annual retail consumption, underscoring the growing weight of the season in the economy.
E-Commerce Platforms Reap the Rewards
Online marketplaces emerged as major winners of the GST cuts.
Amazon India recorded over 2.76 billion customer visits, with 70% from Tier-2 and Tier-3 cities, shopping for smartphones, smart TVs, sarees, décor, beauty products, and essentials.
Same-day and next-day deliveries in metro cities jumped 29%, while two-day deliveries in smaller towns rose 37%.
Meesho also saw record engagement, with 2.06 billion visits and 117 million hours of shopping during the Dussehra week alone.