Prime Minister Narendra Modi’s timely GST rate cuts have sparked an unprecedented surge in consumer spending, turning Navratri into one of the largest shopping festivals in recent years and setting the stage for what promises to be a historic Diwali for India’s economy.
Inflation, a key factor influencing consumer spending, has cooled to its lowest level in eight years, with the Consumer Price Index (CPI) at just 1.54 percent and food inflation slipping into negative territory at -2.3 percent. These favorable conditions have empowered households to celebrate the festive season with more enthusiasm and expenditure.
The impact of the GST cuts was immediate and striking. Reported turnovers for the combined festive and wedding season are expected to surpass Rs 7 lakh crore, marking the biggest consumer spending spree in recent memory. Digital payments soared dramatically, rising from Rs 1.18 lakh crore on September 21 to an astonishing Rs 11.31 lakh crore on September 22 as shoppers rushed to capitalize on the reduced tax rates.
Cities like Delhi witnessed festive sales estimated at Rs 75,000 crore, while Ahmedabad saw nearly a 10 percent rise in demand for cotton fabrics following GST cuts on garments priced below Rs 2,500. The government’s policy move has not only lowered costs but also revitalized local supply chains and bolstered the “Make in India” initiative.
The automobile sector emerged as a standout performer during Navratri. Maruti Suzuki doubled its sales from the previous year, delivering 1.65 lakh vehicles in eight days, including a record 30,000 cars on Ashtami alone—the highest single-day tally in 35 years.
Mahindra & Mahindra reported a 60 percent increase in SUV sales, led by the XUV700 and Scorpio N models, while Tata Motors sold over 50,000 vehicles. Hero MotoCorp and Bajaj Auto also reported doubling showroom footfalls compared to last year. The Federation of Automobile Dealers Associations (FADA) noted a historic 34 percent year-on-year growth in Navratri auto sales, attributing the surge largely to GST reforms and increased consumer optimism.
Consumer electronics mirrored this boom, with sales of televisions, refrigerators, and washing machines soaring after the GST cuts. Premium electronics sales jumped 40-45 percent, with Haier reporting an 85 percent growth and nearly selling out its stock of large-screen TVs. Retailers like Reliance Retail, Vijay Sales, LG, and Godrej Appliances all recorded strong double-digit growth.
The rise of e-commerce platforms has been another key feature of this festive wave. Amazon India recorded over 276 crore customer visits during the season, with 70 percent of shoppers coming from tier 2 and tier 3 cities. There was a corresponding surge in Prime memberships from smaller cities, along with a 29 percent year-on-year increase in same-day and next-day deliveries in metros and a 37 percent rise in two-day deliveries in smaller towns. Meesho also saw record engagement, clocking 206 crore customer visits and 117 million hours of shopping during Dussehra week alone.
Reflecting this consumer confidence, India’s stock market surged with the Nifty 50 hitting a 52-week high of 25,709, buoyed by strong foreign inflows and a firmer rupee.
PM Modi’s government has deftly timed the GST cuts to coincide with the peak festive shopping period, effectively giving Indian consumers more purchasing power and choice while boosting domestic manufacturing. The result is a nationwide celebration not just of festivals, but of economic resilience and growth.
This festive season, India’s growth story shines as brightly as the Diwali diyas, fueled by policy reforms that empower consumers, energize businesses, and reaffirm the nation’s march towards a Viksit Bharat.