Modi Govt’s GST Cut Ignites Festive Shopping Boom as Indians Spend ₹6 Trillion: Reports
Issue: To analyze the massive surge in consumer spending across India during the month-long festive period (September 22 to mid-October 2025), determining the extent of the economic boost and confirming the role of the Goods and Services Tax (GST) rate cuts.
Facts:
- The Modi government slashed GST rates for almost 400 categories of products, effective from September 22, 2025.
- The period analyzed covered the beginning of the festive season (Navratri) up to late October.
- The GST reduction was intended to revive consumer confidence and inject a ₹2 trillion demand stimulus into the economy.
Decision:
The surge in spending activity, directly ignited by the GST rate cuts, resulted in total sales crossing ₹6 trillion (₹6 lakh crore) during the festive season.
Key TakeDowns:
- Record Spending: Sales crossed ₹6 trillion on items including jewelry, electronics, apparels, furnishing, and sweets.
- Significant Growth: Spending between September 22 and October 21 increased by 8.5% compared to the same period last year, according to retail intelligence data.
- Auto Sector as Major Beneficiary: Automobile manufacturers were among the biggest beneficiaries, reporting record sales:
- Tata Motors reported a 26.6% increase in total sales in October.
- Maruti Suzuki reported a 7% growth in total sales, with domestic sales up 10.75% to an all-time high.
- Mahindra & Mahindra (M&M) posted a 31% YoY growth in domestic passenger vehicle (SUV) sales, achieving its highest-ever monthly SUV sales.
- Production Ramps Up: The surge in bookings forced businesses to rush to stock inventories, with Maruti Suzuki working on Sundays to handle the high demand, especially for entry-level models.
- Policy Validation: The robust sales confirm that the GST reduction effectively revived consumer confidence and successfully provided the anticipated stimulus to the economy.
Source :- Economic Times