Festival-season sales likely to hit record ₹4.75 trillion after GST relief

India's consumer economy witnessed its highest Navaratri sales in over a decade

The recent cuts in goods and services tax (GST) slabs have spurred demand momentum in the country, with Diwali 2025 sales expected to surpass ₹4.75 trillion, said the Confederation of All India Traders (CAIT) on Friday. 

 

“Both direct and indirect taxes have gone down after the income tax rebates announced in the Budget this year and the GST rate cuts. All this has come as a big relief to both consumers and retailers. It has, in turn, boosted consumption during the crucial festival season,” Praveen Khandelwal, secretary general of CAIT, told Business Standard. 

 

Over the past four years, Diwali sales have consistently shown remarkable growth — from ₹1.25 trillion in 2021 to ₹2.5 trillion in 2022, further rising to ₹3.75 trillion in 2023, and ₹4.25 trillion in 2024, CAIT added.

“This year's figure of ₹4.75 trillion marks a new milestone, also signifying an expanding market size,” Khandelwal further said. He added that consumers are increasingly demanding more made-in-India products. 

 

According to the apex body of trade federations and associations, the national capital alone is expected to see sales of around ₹75,000 crore. According to retailers, the ongoing festival season is expected to perform better. 

 

“This season is definitely feeling better than last year as customers are more willing to spend with lower MRPs,” said a sales executive at an apparel store in Delhi's Connaught Place.

 

According to government sources, India’s consumer economy witnessed its highest Navratri sales in over a decade. 

 

Maruti Suzuki’s Navratri sales grew 100 per cent from last year. These were the best-ever figures in at least a decade, they said

 

They added that the company reported 350,000 bookings with nearly 250,000 pending bookings. Maruti also delivered a massive 165,000 vehicles in the first eight days of Navratri.

 

Similarly, at Hyundai, the surge in demand for models like Creta and Venue pushed SUV share of total sales to over 72 per cent, sources said.

 

They added that showroom footfalls of two-wheeler maker Hero MotoCorp have doubled this Navratri with high traction in the commuter segment.

 

Sources further said that durables retailers, too, have seen impressive sales.

 

Haier’s sales soared 85 per cent, nearly selling out its Diwali stock of 85-inch and 100-inch TVs priced above ₹2.5 lakh.

 

Retailer Vijay Sales saw a more than 20 per cent sales growth during the period. 

 

Talking about the recent GST cuts on TVs, ACs and dishwashers, Sanjay Chitkara, chief sales officer at LG Electronics India had told Business Standard recently, “The GST cut is a direct enabler for our business. It will improve the demand for our product.

 

It has improved affordability and with this we are witnessing premiumisation and also seeing cross-selling opportunities. The customer has limited disposable money and within that budget they can buy two products, or they can upgrade the products with this relief.” 

 

Ashish Agrawal, chief operating officer (COO) at LG Electronics India, also said that large TV screen panels, typically 55 and 65 inches, are surging. 

 

“The buzz is back at the malls. We are seeing green shoots with the rate cuts and the income tax rebates aiding the demand sentiment at retail touch points. We are hopeful of a double-digit growth in H2 of FY26,” Pushpa Bector, senior executive director and business head at DLF Retail, told Business Standard recently.