GST reforms spark record Navratri sales, set stage for historic Diwali boom: Sources

The Centre’s GST reforms, with tax cuts on over 400 items, have ignited a nationwide shopping surge with record Navratri consumption and have set the stage for a bumper Diwali, said government sources. They pointed out that the domestic auto sector witnessed its best sales in a decade this Navratri, while massive traction has been observed in consumer electronics.

“Lower taxes on essential and consumer goods have brought relief to households, energised the markets, and set the tone for what could become India’s most prosperous Diwali ever,” a source said.

Additionally, inflation at an eight-year low is only aiding the sentiment. “Inflation has cooled to its lowest in eight years, with CPI at just 1.54%, while food inflation turning negative (-2.3%) is giving families the financial freedom to celebrate bigger. As GST rates dropped, prices fell, and purchasing power rose. What followed was an economic celebration that mirrored the nation’s festive spirit,” said another source.

The source added that the timing of the GST cuts right before the festival and wedding season proved perfect. Consumer sentiment soared, and the results are visible across every sector, the source pointed out. It may be noted that the wedding season is about to add more glitter to the festive sheen. According to some estimates, the festive and wedding season turnover is pegged to exceed ₹7 lakh crore, marking India’s biggest spending spree in years.

“The government’s economic decisions have not just reduced costs; they’ve revived the festive economy, boosted local supply chains, and empowered Made-in-India products to dominate markets again,” the first source pointed out.

That said, the country’s auto sector has led the charge, followed by consumer electronics. Both have witnessed bumper sales during this Navratri. According to the government sources, the domestic automobile industry has seen its best Navratri performance in a decade. Maruti Suzuki doubled its sales from last year, delivering 1.65 lakh cars in just eight days, including a record 30,000 vehicles on Ashtami alone—the highest single-day figure in 35 years. For Mahindra & Mahindra, the XUV700 and Scorpio N led the sales, resulting in a 60% surge in SUV sales. Tata Motors sold over 50,000 vehicles. On the two-wheeler front, Hero MotoCorp and Bajaj Auto reported double the footfalls at showrooms compared to last year.

FADA data says the auto industry recorded a 34% year-on-year growth in Navratri sales—its highest-ever performance.

Consumer electronics too have witnessed major traction since the GST cuts on September 22. Overall consumer durable sales jumped 40–45%, led by premium product categories, according to some estimates.