India's festival spending jumps to US$ 67.6 billion after GST cuts as demand rises
- IBEF
- November 4, 2025
India’s month-long festive season saw record consumer spending as the government’s sweeping Goods and Services Tax (GST) cut spurred demand across sectors, from automobiles to household goods. Between September 22 and October 21, spending rose 8.5% YoY to about Rs. 6,00,000 crore (US$ 67.6 billion), according to Bizom data shared with Bloomberg. The surge came despite the United States (US) imposing a 50% import levy earlier in the year. Retailers reported strong sales in jewellery, electronics, apparel, furnishings, and sweets, signalling a robust recovery in domestic consumption. The government’s first major tax reduction in nearly a decade, covering around 400 product categories, helped boost affordability and sentiment during the festive period.
Automakers led the momentum, with Maruti Suzuki, Tata Motors, Mahindra & Mahindra, and Hyundai Motor India posting record sales. Maruti ramped up production to meet surging demand, particularly for entry-level models. At the same time, Mahindra’s tractor sales rose 27%, driven by a good monsoon and rural income growth. Financial services and consumer goods companies also benefited, as Kotak Mahindra Bank, SBI Cards, and Crompton Greaves reported robust spending across categories. Analysts cautioned that part of the jump may reflect pent-up demand, but firms remain optimistic about sustained momentum through early 2026. Crompton CFO Mr. Kaleeswaran A. said growth in housing, wires, and lighting segments signals improving household sentiment, underscoring that consumption is ‘moving in the right direction.’
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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