India’s festive economy hits decade-high growth
India has recorded its strongest Navratri sales in over a decade, with brands across sectors reporting growth between 25% and 100%. Economists and industry trackers attribute the surge to the Modi government’s GST reforms, which have rationalised tax slabs, lowered consumer prices, and unlocked spending power.
The festive season — spanning Onam, Durga Puja, Dussehra, and Navratri — accounts for nearly 40–45% of annual festive consumption, making it the most crucial sales period of the year. This season, reduced tax rates on both essentials and aspirational products helped accelerate purchases across automobiles, consumer electronics, and lifestyle categories.
Automobile sector drives record growth
The automobile industry saw unprecedented demand during Navratri.
• Maruti Suzuki doubled its sales compared to last year, delivering 1.65 lakh vehicles in just eight days, including a record 30,000 cars on Day 1 — its best single-day sales in 35 years. The company has received 1.5 lakh bookings and expects to touch 2 lakh, far higher than the 85,000 vehicles sold last Navratri.
• Mahindra & Mahindra reported a 60% year-on-year surge in SUV sales, driven by strong demand for the XUV700 and Scorpio N.
• Tata Motors crossed 50,000 units, boosted by demand for the Altroz, Punch, Nexon and Tiago.
• Hyundai saw SUVs dominate sales, with the Creta and Venue pushing their share above 72%.
• Hero MotoCorp reported showroom footfalls doubling, while Bajaj Auto also registered robust demand in two-wheelers.
Consumer electronics on a high
Electronics and appliance sales also witnessed exceptional growth:
• Haier posted an 85% jump, nearly selling out its premium Diwali stock of 85-inch and 100-inch TVs priced above ₹2.5 lakh, and moving 300–350 units of 65-inch TVs daily.
• Reliance Retail registered a 20–25% rise, led by demand for smartphones, fashion, and large-screen TVs.
• Vijay Sales saw growth above 20%, while LG Electronics India reported “exponential growth.”
GST reforms fuel consumer confidence
Analysts note that the rationalisation of GST rates has lowered the tax burden on both essential and aspirational items, creating an environment of confident spending. Retailers say customers are upgrading to higher-value products — from vehicles and appliances to premium gadgets — reflecting renewed consumer optimism.
Industry experts predict the momentum will extend into Diwali, setting the stage for one of India’s most buoyant festive seasons in recent memory.
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