From Sarees To SUVs: What’s Behind India’s Rs 7 Trillion Festive Boom?

India’s 2025 festive and wedding season is poised to become one of the most significant economic catalysts in recent years. With total turnover expected to surpass a whopping Rs 7 trillion, a combination of government policy shifts and heightened consumer sentiment has led to a historic surge in retail across sectors, according to the recent data released by the government.

The turning point? Recent GST cuts, which kicked in just before the onset of the festive rush, dramatically altered the spending landscape. The Centre said that the timing of the GST cuts just before the festival and wedding season proved ideal, boosting consumer sentiment across sectors.

GST Cuts Ignite Retail Revival

The impact of the GST reductions was immediate and widespread. Prices came down, demand shot up, and the retail ecosystem lit up across cities and towns. The government’s measures have not only reduced costs but also revived the festive economy, strengthened local supply chains, and promoted Made-in-India products across markets.

A day after the GST cut announcement, digital payments skyrocketed, from Rs 1.18 trillion on September 21 to a massive Rs 11.31 trillion on September 22. In Delhi alone, festive purchases touched Rs 75,000 crore. Meanwhile, Ahmedabad saw a nearly 10 per cent jump in cotton fabric demand, all thanks to reduced GST on garments under Rs 2,500, according to a Business Standard report.

Auto Industry Drives Navratri Sales

This year’s Navratri sales marked the best performance for the auto sector in over a decade. Maruti Suzuki doubled its sales compared to last year, delivering 165,000 cars in just eight days, including a record-breaking 30,000 vehicles on Ashtami, marking the highest single-day sales in 35 years.

Mahindra & Mahindra posted a 60 per cent spike in SUV sales, led by XUV700 and Scorpio N. Tata Motors moved over 50,000 vehicles, and Hyundai reported 72 per cent of its sales coming from SUVs. Even two-wheeler giants Hero MotoCorp and Bajaj Auto reported double the showroom footfall compared to last year.

Electronics & E-commerce Break Records

Consumer electronics also saw a major boom. Big-ticket items like large-screen TVs, refrigerators, and washing machines were flying off shelves. Sales of televisions, refrigerators, and washing machines jumped 40–45 per cent, led by premium products.

Haier alone logged 85 per cent growth, nearly exhausting its Diwali stock of 85- and 100-inch TVs. Reliance Retail recorded 20–25 per cent higher sales, while Vijay Sales, LG, and Godrej Appliances posted robust double-digit increases.

The e-commerce sector emerged as a big winner.

Amazon India recorded over 2,760 million customer visits, with 70 per cent from Tier-2 and -3 cities. Shoppers were eager for same-day deliveries, with metros seeing a 29 per cent rise, and Tier-2 and Tier-3 cities enjoying a 37 per cent boost in two-day deliveries. Meesho wasn’t far behind, clocking 2,060 million visits and 117 million shopping hours during Dussehra week.