Retailers report 11% growth during festive period as GST reform improves consumption
- IBEF
- November 24, 2025
India’s retail sector recorded an 11% rise during the 87-day festive period from August 1 to October 26, 2025, compared with August 9 to November 3, 2024, according to the Retailers Association of India (RAI). The uplift was driven mainly by the Goods and Services Tax (GST) reduction, which encouraged stronger consumer participation in value-driven categories falling under lower slabs. Apparel and footwear priced below Rs. 2,500 (US$ 27.88), both taxed at 12%, saw improved demand, while premium apparel above Rs. 2,500 (US$ 27.88), now taxed at 18%, recorded moderated traction. Food and grocery, jewellery, and footwear each grew by 12%, sports goods rose by 11%, and apparel, along with beauty and personal care, rose by 9%. Regionally, West India led with 13% growth, followed by North and East at 10% each, and South at 9%, reflecting broad-based festive consumption across the country. Quick Service Restaurants (QSRs) also performed strongly, indicating increased dining and experience-based spending, while the furniture category benefited from home-improvement demand during the festive season.
Chief Executive Officer, Retailers Association of India, Mr. Kumar Rajagopalan, said retail growth, which began in 2025 at around 4-5%, had improved to nearly 7-8% during April to July 2025. He added that the GST Bachat Mahotsav helped lift festive sales into double digits, as consumers remained active but cautious in discretionary purchases at higher price points. Seasonal and occasion-led buying supported categories such as jewellery, while demand trends showed consumers favouring affordability and value in their purchase decisions.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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