GST cuts boost spending; festive, wedding season sales to cross ₹7 trn

The festive and wedding season turnover is expected to exceed ₹7 trillion in 2025, marking one of India’s largest spending sprees in years on the back of recent cuts in the goods and services (GST) tax, according to the data released by the government.

 

The Centre said that the timing of the GST cuts just before the festival and wedding season proved ideal, boosting consumer sentiment across sectors.

Festive economy

The government’s measures have not only reduced costs, but also revived the festive economy, strengthened local supply chains, and promoted Made-in-India products across markets.

 

Digital payments soared tenfold overnight, jumping to ₹11.31 trillion on September 22, from ₹1.18 trillion on September 21, as shoppers rushed to avail GST savings. Cities like Delhi saw festive sales of around ₹75,000 crore, while Ahmedabad recorded nearly a 10 per cent rise in cotton fabric demand after GST reductions on garments under ₹2,500.

 

Auto sector leads charge

The automobile industry recorded its strongest Navratri performance in a decade. Maruti Suzuki doubled sales from last year, delivering 165,000 cars in eight days, including a record 30,000 vehicles on Ashtami, the highest single-day figure in 35 years. 

 

Mahindra & Mahindra saw a 60 per cent surge in SUV sales, led by the XUV700 and Scorpio N, while Tata Motors retailed over 50,000 vehicles. Hyundai’s SUVs (Creta and Venue) now account for 72 per cent of total sales, and two-wheeler makers like Hero MotoCorp and Bajaj Auto reported double the showroom footfall compared to last year.

Consumer electronics see record sales

GST cuts also sparked a surge in consumer electronics. Sales of televisions, refrigerators, and washing machines jumped 40–45 per cent, led by premium products. Haier reported 85 per cent growth, nearly selling out its Diwali stock of 85-inch and 100-inch TVs.

 

Reliance Retail saw 20–25 per cent higher sales, fuelled by large-screen TVs and smartphones, while Vijay Sales, LG, and Godrej Appliances all posted strong double-digit growth. From Onam to Navratri, festive sales now account for 40–45 per cent of India’s annual retail consumption.

E-commerce platforms key beneficiaries

The e-commerce platforms emerged as key beneficiaries of GST cuts, with millions shopping online for everything from gadgets to gold. Amazon India recorded over 2,760 million customer visits, with 70 per cent from Tier-2 and -3 cities, purchasing smartphones, smart TVs, sarees, festive décor, beauty products, and essentials.

 

Same-day and next-day deliveries in metro areas rose 29 per cent, and two-day deliveries in Tier-2 and -3 cities increased 37 per cent. Meesho also saw record engagement, with 2,060 million visits and 117 million hours of shopping during Dussehra week.