India’s festive economy witnessed an unprecedented surge during Navratri 2025, with sales across automobiles, consumer electronics, and retail sectors reaching their highest levels in a decade. According to Business Standard (Oct 3, 2025), the boom was primarily driven by GST rationalisation, which reduced prices across key categories, boosting consumer confidence and purchasing power.
This exceptional performance underscores India’s consumption-led growth story, reaffirming the country’s position as one of the world’s most resilient consumer markets amid global economic uncertainty.
Record-Breaking Navratri Sales
- The first eight days of Navratri 2025 recorded historic sales growth across industries. The festival period, which marks the onset of India’s major festive season (Onam to Diwali), witnessed double- and triple-digit growth in several segments, including automobiles, electronics, and retail goods.
- Automobile Sector Performance: The automobile industry emerged as the strongest driver of consumption, reporting record deliveries and bookings across brands:
- Two-Wheeler Segment: Hero MotoCorp saw showroom footfalls double, while Bajaj Auto reported strong sales across its commuter and premium models. and This resurgence reflects India’s growing middle-class aspirations and rural demand recovery, supported by falling loan rates and improved rural incomes.
Consumer Electronics and Retail Boom
Parallel to the auto sector, consumer electronics and retail sales also soared to record levels,
- Haier India recorded an 85% jump in sales, nearly exhausting its Diwali TV inventory.
- LG Electronics India reported “exponential growth” across major appliance categories.
- Reliance Retail achieved 20–25% growth, with major uptick in smartphones and consumer durables.
- Vijay Sales and Godrej Appliances reported 20–30% growth over the previous year.
- Premium TV models — including 85-inch and 100-inch displays — sold out rapidly, indicating rising affordability and aspirational spending among urban consumers.
The shift toward larger appliances and high-end electronics signifies a post-reform consumption upgrade, supported by reduced GST rates on electronics and easier access to consumer financing.
Role of GST Reforms in Driving Festive Growth
The Goods and Services Tax (GST) rationalisation, part of the GST 2.0 reforms, has been a major enabler of this consumption boom.
Key Impacts of GST Reform
- Reduced tax burden: Rationalised GST rates made essential and aspirational products more affordable.
- Improved supply chain efficiency: Streamlined logistics and input tax credits reduced operational costs.
- Price transparency: Standardised tax rates encouraged consumers to upgrade from unorganised to branded products.
- Formalisation of markets: More small and medium retailers joined the GST network, widening the consumption base.
- Together, these reforms enhanced consumer confidence, driving higher spending during the festive season.
Key Economic Takeaways
- Retail growth: Sales growth across segments ranged from 25% to 100%, indicating robust consumer sentiment.
- Rural resilience: Rural markets continued to outpace urban demand, driven by stable farm incomes and rising rural electrification.
- Employment & production: High demand led to increased manufacturing output and temporary employment in retail and logistics sectors.
- Consumption share: The first half of India’s festive season (Onam–Dussehra) accounts for 40–45% of total annual festive spending.