India's festive season spending to surpass ₹7 trillion this year
What's the story
India's festive and wedding season spending is projected to surpass ₹7 trillion in 2025, according to the government data. The prediction comes after the recent cuts in Goods and Services Tax (GST) have given a major boost to consumer sentiment across sectors. The government's decision to cut GST just before the festive and wedding season has proven strategic, as it has not only reduced costs but also revived the economy during this period.
Economic impact
Surge in digital payments and vehicle sales
The GST cuts have led to a massive surge in digital payments, which skyrocketed tenfold overnight on September 22. The automobile industry also witnessed its best Navratri performance in a decade, with Maruti Suzuki doubling its sales from last year. Other companies like Mahindra & Mahindra and Tata Motors also saw significant increases in their vehicle sales during this period.
Market growth
Rise in consumer electronics sales and e-commerce activity
The GST cuts have also led to a surge in consumer electronics sales, with televisions, refrigerators, and washing machines witnessing a 40-45% increase. Reliance Retail reported 20-25% higher sales during this period. E-commerce platforms like Amazon India also benefited from these changes, recording over 2,760 million customer visits during Dussehra week alone.