Author: Aarya Shah | EQmint 

India’s festive season has kicked off with a bang, with Navratri sales soaring to a 10-year high, marking a major milestone for the country’s consumption-driven economy. According to government officials and industry reports, a combination of reduced GST rates, revived consumer confidence, and aggressive retail offers has propelled brands and retailers to report sales growth between 25% and 100% across categories.

The surge in demand spans from automobiles and electronics to fashion, jewellery, and home appliances, signaling a strong revival in India’s post-pandemic consumption cycle.

GST Cuts and Policy Boosts Drive Festive Consumption

The recent rationalisation of GST slabs by the Centre and state governments played a key role in boosting consumer sentiment. The government’s move to lower GST rates on several goods and services not only eased the burden on households but also encouraged discretionary spending during the festive period.

A senior official explained, “By easing the tax burden on essential and aspirational items alike, we aimed to stimulate consumption without significantly denting tax collections. The outcome has been phenomenal — a clear reflection of India’s resilient consumer base.”

The strategic GST adjustments covered everyday goods, cement, white goods, and automobiles. While luxury and sin products like tobacco remained outside the relaxation zone, most household categories saw meaningful reductions. This policy realignment, coupled with the festive spirit of Navratri, led to record-breaking sales across various industries.

Retailers and Brands Celebrate a Golden Season

Retailers across India have reported an unprecedented rise in footfall and spending. Both offline and online markets experienced a strong rebound as families thronged stores and e-commerce platforms for festive shopping.

Leading consumer brands, including LG, Haier, and Godrej, reported double-digit sales growth across their appliance and electronics segments. “We’ve witnessed one of the best Navratri seasons in years,” said an executive from a leading consumer durable company. “Customers are upgrading to premium models, especially in refrigerators, washing machines, and smart TVs, driven by attractive offers and EMI options.”

Fashion and lifestyle brands too saw remarkable traction, with increased demand for festive wear, jewellery, and accessories. The revival in retail is particularly significant for urban markets like Delhi, Mumbai, and Bengaluru, where organized retail had been under pressure in previous quarters.

Automobile Sales Accelerate

The automobile sector — often viewed as a barometer of consumer confidence — recorded remarkable sales momentum during Navratri.

• • Maruti Suzuki doubled its sales compared to last year, with over two lakh bookings registered during the festive period.

• • Tata Motors crossed the 50,000-vehicle mark, while Hyundai reported a surge in demand exceeding 60%.

Automobile dealerships across the country attributed the boost to both price stability and increased rural participation. Many rural consumers, buoyed by strong monsoon conditions and better agricultural income, contributed significantly to two-wheeler and entry-level car sales.

Real Estate Sees Festive Revival

It wasn’t just consumer goods that benefited. The festive cheer extended to India’s property market as well. Mumbai, for instance, recorded 6,238 property registrations between September 22 and October 1, marking a 20% increase from last year.

According to Knight Frank India, this surge represented the city’s best September in a decade, fueled by reduced stamp duties, attractive developer offers, and growing buyer confidence.

The positive trend in real estate is expected to spill over into Diwali, with developers anticipating continued demand momentum through December.

India’s Consumption Story Strengthens

Economists view the current trend as a turning point for India’s domestic demand. The consumption boost from GST cuts, rising disposable incomes, and festive optimism is expected to provide significant tailwinds for the third quarter.

With Onam to Dussehra contributing to nearly 45% of India’s festive season sales, and Diwali just weeks away, analysts expect sustained momentum through the end of the year. Luxury and high-end segments — which had seen moderation in early 2025 — are now witnessing renewed traction.

A senior industry analyst remarked, “This festive season is a testament to India’s consumer resilience. Despite inflationary pressures earlier in the year, people are spending confidently again. GST rationalisation and discounts have given the final push.”

Looking Ahead: Diwali and Beyond

Retailers and industry experts are optimistic that the current trend will carry forward into the Diwali and Christmas seasons. With more disposable income, rising credit availability, and growing consumer aspirations, India’s retail and services sector appears poised for a prolonged boom.

The festive months are not only helping businesses recover lost ground but also strengthening India’s position as one of the world’s fastest-growing consumption markets.

As one senior government official summed it up, “Our goal was simple — make essential goods affordable, boost the middle class’s confidence, and let the festive spirit do the rest. The numbers speak for themselves — India’s consumption engine is back on track.”

Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.