India’s month-long festive season witnessed a record-breaking surge in consumer spending, hitting an impressive US$67.6 billion (₹6,00,000 crore) between September 22 and October 21, according to Bizom data shared with Bloomberg. The rise — an 8.5% year-on-year (YoY) increase — came on the back of the government’s sweeping Goods and Services Tax (GST) cuts, which boosted demand across sectors from automobiles to household goods.
Despite the United States imposing a 50% import levy earlier this year, India’s domestic consumption remained robust. Retailers across the country reported strong sales in jewellery, electronics, apparel, furnishings, and sweets, underscoring a renewed wave of consumer confidence and spending power.
The government’s first major GST reduction in nearly a decade, covering around 400 product categories, helped make goods more affordable while lifting festive sentiment across urban and rural markets alike.
Automakers were among the biggest winners. Industry leaders such as Maruti Suzuki, Tata Motors, Mahindra & Mahindra, and Hyundai Motor India saw record sales during the festive rush. Maruti ramped up production to meet soaring demand, particularly for entry-level models, while Mahindra’s tractor sales jumped 27%, fueled by a good monsoon and rising rural incomes.
The festive cheer also spread to financial services and consumer goods. Companies like Kotak Mahindra Bank, SBI Cards, and Crompton Greaves reported robust spending across multiple categories. Crompton’s CFO, Mr. Kaleeswaran A., noted that growth in housing, wires, and lighting segments indicates a positive shift in household sentiment — highlighting that consumption is “moving in the right direction.”
While analysts cautioned that part of this surge may stem from pent-up demand, optimism remains high that the momentum will continue well into early 2026, signaling strong prospects for sustained economic recovery.
Source: IBEF
