Festival spending soars 8.5% to $67.6B on GST cut

Business Nov 03, 2025

India's festival season just got a major upgrade—thanks to a GST cut in late September 2025, spending from Navratri to Diwali jumped 8.5% over last year, hitting $67.6 billion.
Shoppers flocked for jewelry, electronics, clothes, and sweets, with traders calling demand huge.

While the short-term win is great, economists warn of risks

The GST reduction made stuff more affordable and was meant to boost local buying after tough import tariffs from the US.
It worked: even carmakers like Maruti Suzuki and Tata Motors saw sales soar, and home goods flew off shelves.
But economists are keeping it real—while this is a great short-term win for shoppers and brands, they warn that deeper economic challenges still need fixing for long-term growth.