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GST cuts fuel nationwide festive sales, boost consumption growth

By IANS | Updated: October 18, 2025 16:50 IST

New Delhi, Oct 18 The recent GST rate cuts have sparked a nationwide shopping surge, making Navratri sales ...

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New Delhi, Oct 18 The recent GST rate cuts have sparked a nationwide shopping surge, making Navratri sales one of the largest consumption waves in years in automobiles, consumer electronics and e-commerce, according to industry estimates.

Analysts projected festive and wedding season turnover to exceed Rs 7 lakh crore. Digital payments jumped tenfold overnight, from Rs 1.18 lakh crore on September 21 to Rs 11.31 lakh crore on September 22, as shoppers rushed to take advantage of GST savings, according to industry data.

Delhi's festive sales are estimated at Rs 75,000 crore, while Ahmedabad experienced nearly a 10 per cent increase in cotton fabric demand following GST reductions on garments priced under Rs 2,500.

The automotive and consumer durable sectors received a huge boost from the GST reforms. Federation of Automobile Dealers Associations (FADA) reported a 34 per cent year-on-year increase in Navratri auto sales, marking the highest growth to date.

Maruti Suzuki India doubled its sales compared to last year, delivering 165,000 cars in eight days, including a record 30,000 vehicles on Ashtami, while two-wheeler manufacturers saw showroom footfall double.

Consumer durable sales increased by 40-45 per cent, led by premium product categories, the industry estimates said. All leading consumer electronics brands and dealers saw strong double-digit growth.

E-commerce platforms also emerged as one of the biggest beneficiaries of the festive GST cut, as Amazon India reported a 29 per cent increase in same- and next-day deliveries in metropolitan areas and a 37 per cent rise in two-day deliveries to tier-2 and tier-3 cities.

Market sentiment reflected consumer momentum as the Nifty 50 reached a 52-week high of 25,709, supported by strong foreign inflows, a firmer rupee, and festive demand. Lower taxes on essential and consumer goods have eased household budgets and energised local supply chains, boosting Made-in-India products across markets, the report said.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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