New Delhi: India’s festive economy recorded one of its strongest performances in recent years, driven by Goods and Services Tax (GST) reductions across essential and consumer goods. The policy changes have revived consumption, boosted purchasing power, and set off a record-breaking shopping wave ahead of Diwali.
Inflation has eased to an eight-year low, with the Consumer Price Index (CPI) at 1.54 per cent, while food inflation has turned negative at -2.3 per cent, giving households greater spending power. The combined festive and wedding season turnover is projected to exceed Rs 7 lakh crore – signalling India’s biggest consumption phase in years.
Digital payments reflected the surge in consumer activity, rising from Rs 1.18 lakh crore on September 21 to Rs 11.31 lakh crore on September 22 – a tenfold jump in just 24 hours. Delhi alone reported festive sales worth Rs 75,000 crore, while Ahmedabad’s cotton fabric demand grew by nearly 10 per cent following GST cuts on garments priced under Rs 2,500.
The automobile industry posted its best Navratri performance in a decade. Maruti Suzuki sold 1.65 lakh vehicles in eight days, including 30,000 on Ashtami – its highest single-day record in 35 years. Mahindra & Mahindra’s SUV sales surged 60 per cent, while Tata Motors and Hyundai also registered strong numbers. According to the Federation of Automobile Dealers Associations (FADA), the sector grew 34 per cent year-on-year during Navratri, marking an all-time high.
Consumer durables recorded 40-45 per cent higher sales since September 22. Haier reported 85 per cent growth in premium televisions, Reliance Retail saw 20-25 per cent higher sales than last year, and brands such as LG and Godrej Appliances posted double-digit growth.
E-commerce platforms also saw unprecedented activity. Amazon India registered 276 crore customer visits – 70 per cent from tier 2 and tier 3 cities – while Meesho logged 206 crore visits and 117 million hours of shopping during Dussehra week.
The retail momentum has reflected positively in stock markets, with the Nifty 50 touching a 52-week high of 25,709 amid strong festive demand and foreign inflows.
Finance Minister Nirmala Sitharaman stated that the government is closely monitoring more than 50 zones to assess the impact of the new GST reforms, covering sectors such as consumer goods, electronics, automobiles, dairy products, healthcare items and more.
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