Retail industry grows 11% in festive period on GST-driven value demand

The retail industry expanded 11 per cent during the 87-day festive window as consumers favoured value-driven categories under lower GST slabs, with apparel below Rs 2,500

Retailers Association of India (RAI) said that the industry reported 11 per cent growth during the 87-day festive period (August 1–October 26) compared to last year’s festive period (August 9–November 3, 2024) due to an increase in consumption under the GST Bachat Mahotsav framework.

 

What drove overall retail growth during the festive period?

 

According to RAI’s Retail Business Survey, consumers responded actively to value-driven categories that fell under the lower GST slabs.

 

“Apparel and footwear priced below Rs 2,500, both taxed at 12 per cent, recorded stronger traction, while premium apparel above Rs 2,500, which moved from 12 per cent