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Key Points

The festive season has kicked off with remarkable consumer enthusiasm, driven by strategic GST rate reductions. E-commerce platforms are experiencing unprecedented traffic, with over 70% of customers coming from non-metro regions. Premium product categories like smartphones and electronics are seeing significant growth. The combination of policy reforms and festive spirit is reshaping India's consumer spending landscape.

Key Points: Navratri Sales Surge 25% with GST Cuts Boosting Consumer Demand

  • GST rate cuts drive significant increase in festive season sales
  • E-commerce platforms report record traffic from tier-2 and tier-3 cities
  • Premium electronics and fashion categories see strong consumer interest
  • Small businesses benefit from unprecedented sales momentum
2 min read

Festive sales jump 23–25 pc in first 2 days of Navratri over GST cuts: Report

Festive shopping sees dramatic 23-25% growth as GST reforms trigger price cuts and boost consumer spending across categories

"This festive season is different from previous years. Instead of focusing only on discounts, consumers are now making aspirational purchases. - Industry Expert"

New Delhi, Sep 26

Consumer demand has seen a sharp boost this festive season, with sales rising by 23–25 per cent in the first two days of Navratri compared to last year, according to a report.

The growth, driven by GST-led price cuts and strong festive sentiment, marks one of the strongest starts in recent years, as per the data compiled by market research firm Redseer.

The new GST rates, which came into effect on September 22, have directly lowered the cost of many popular products.

Large-screen TVs, for example, saw GST reduced from 28 per cent to 18 per cent, leading to a 6-8 per cent fall in retail prices.

The report said this move has pushed buyers towards premium models. Fashion items under Rs 2,500 now attract just 5 per cent GST, while furniture has also been shifted to the 5 per cent slab, encouraging more purchases.

Industry experts say that this festive season is different from previous years. Instead of focusing only on discounts, consumers are now making aspirational purchases.

Shoppers in tier-2 and tier-3 cities are also driving growth -- reflecting rising confidence and interest in discretionary spending.

E-commerce platforms are reporting record traffic. Amazon said it received over 38 crore customer visits in the first two days of its festive sale, its biggest start ever.

More than 70 per cent of this traffic came from outside India's top nine metro cities, the report added.

Categories like smartphones, appliances, fashion, and wellness products are seeing strong growth, with premium gadgets such as QLED and Mini-LED TVs, advanced washing machines, and flagship smartphones in high demand.

Small and medium businesses are also benefiting from the sales rush. According to Amazon, more than 16,000 SMBs have tripled their sales compared to a normal day, with much of this momentum coming from non-metro markets.

Redseer noted that demand was so strong on some platforms that apps slowed down or even crashed as users rushed to grab early-bird discounts and flash deals.

Experts believe that the combination of GST 2.0 reforms and festive excitement has given India's e-commerce market its strongest start in years, signalling a shift towards policy-driven growth in consumer spending.

- IANS

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Reader Comments

R
Rohit P
Great to see tier-2 and tier-3 cities driving this growth. Shows how digital India is becoming reality. From my hometown in Jaipur, everyone is shopping online this Navratri. The discounts plus GST cuts are irresistible!
A
Aditya G
While the sales growth is impressive, I hope this isn't just pent-up demand. The real test will be if this momentum continues post-festive season. Also, e-commerce platforms need to improve their infrastructure - app crashes during sales are frustrating for customers.
S
Sarah B
The shift to premium products is interesting. In our family, we usually wait for big discounts, but this time we bought a premium washing machine because the GST cut made it affordable. Smart move by the government to boost manufacturing too.
K
Karthik V
As a small business owner in Coimbatore, I can confirm the positive impact. Our sales through Amazon have tripled! The GST reduction on furniture helped us compete better with larger brands. Make in India is getting real support. 🇮🇳
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Neha E
Shopping during Navratri has always been auspicious, but this year it's also economical! Bought ethnic wear for the whole family and saved good money due to lower GST. Hope they extend these rates beyond festive season. 🛍️

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