Published on 18/10/2025 06:25 PM
Prime Minister Narendra Modi-led central government's decision to reduce GST rates has transformed this year’s Navratri into one of the strongest consumption phases in recent years. Lower taxes on essential and consumer goods have brought much-needed relief to households while boosting market sentiment.
Inflation has reached an eight-year low, as the Consumer Price Index (CPI) reports 1.54 percent and food inflation is now at -2.3 percent, which means the purchasing power and affordability of people in different sectors have greatly improved.
The festival and wedding season going on now is expected to create a business of more than Rs 7 lakh crore. Digital payments have risen to an unprecedented level from Rs 1.18 lakh crore to Rs 11.31 lakh crore between September 21 and 22, which is a tenfold increase.
In Delhi, festive sales reached almost Rs 75,000 crore, and Ahmedabad saw a 10 percent increase in cotton fabrics demand. According to retail experts, the government's policy changes have not only strengthened local supply chains but also provided a significant boost to the 'Make in India' initiative.
India’s automobile industry has witnessed its strongest Navratri performance in ten years. Maruti Suzuki doubled its sales, delivering 1.65 lakh vehicles in eight days, including 30,000 cars on Ashtami, marking a 35-year record. Mahindra & Mahindra saw SUV sales rise by 60 per cent, led by the XUV700 and Scorpio N.
According to FADA, the auto sector reported a 34 per cent year-on-year growth, the highest level ever recorded during Navratri.
After the September 22 GST rate cut, sales of consumer electronics such as televisions, refrigerators, and washing machines jumped between 40 and 45 per cent. Haier reported 85 per cent growth, with premium TVs priced above Rs 2.5 lakh almost sold out. Reliance Retail saw a 20–25 per cent increase in sales, while LG, Godrej, and Vijay Sales also posted double-digit growth.
Retail analysts estimate that nearly 40–45 per cent of total retail consumption this year is directly linked to festive demand.
Online marketplaces have seen a historic rise in traffic and sales after the GST cut. Amazon India recorded 276 crore visits, with 70 per cent coming from tier-2 and tier-3 cities. Smaller towns also accounted for 70 per cent of new Prime memberships, showing how digital reach continues to grow.
Delivery networks have improved too. Same or next day delivery in metro cities rose 29 per cent, while two day delivery in smaller towns increased 37 per cent. Meesho reported 206 crore visits and over 117 million hours of shopping during Dussehra week.
Industry experts say this growth shows how GST transparency, UPI adoption, and Digital India are spreading consumption across the country.
The Nifty 50 climbed to a 52-week high of 25,709, gaining 2.2 per cent in just three sessions. Strong foreign investment inflows, a stable rupee, and robust consumer demand have lifted overall market sentiment. The optimistic analysts see this across the economy as a whole, from tiny local kirana stores to luxurious high-end showrooms, which is a clear sign of economic confidence on a large scale.
The GST rate cut was a timely intervention, it retracted the taxes and gave a tremendous lift to the consumer's discretion before the festival season. With more savings and increased spending power, the automobile, retail, and e-commerce sectors of India are the forerunners in what is being termed the ‘Great Indian Festival Boom’.