Reforms in the goods and services tax (GST) have boosted consumer spending on items such as cars and kitchen appliances during the festive season, providing some relief to the economy after the 50% tariffs imposed by the US, according to Bloomberg. Between September 22 and October 21, spanning Navratri to Diwali, consumer spending rose 8.5% year-on-year, reaching ₹6 trillion ($67.6 billion), with jewellery, electronics, apparel, furnishings, and sweets seeing the highest demand, cited Bizom data and BC Bhartia of the Confederation of All India Traders.
Auto sales benefited from tax cuts, with Maruti Suzuki, Tata Motors, and Mahindra reporting higher monthly sales. Hyundai saw a 20% increase on Dhanteras, Tata Motors sold over 100,000 vehicles during Navratri–Dhanteras, and Mahindra recorded a 27% jump in tractor sales due to strong rural incomes. Kitchenware also saw a surge, as noted by Crompton Greaves CFO Kaleeswaran A., who highlighted higher sales of pressure cookers.
While the surge may partly reflect pent-up demand, companies remain optimistic. Crompton expects momentum to continue through January, with signs of rising household confidence in real estate and consumer segments pointing to gradually improving consumption.
