Did Festive Sales Surge by 23–25% in the Initial Days of Navratri Due to GST Reductions?

Synopsis
Key Takeaways
- Sales increased by 23–25% in the first two days of Navratri.
- GST cuts have lowered prices on many products.
- Shoppers are making more aspirational purchases.
- Record traffic reported by e-commerce platforms.
- Small businesses are experiencing significant sales growth.
New Delhi, Sep 26 (NationPress) Consumer demand has experienced a significant surge this festive season, with sales increasing by 23–25 percent in the first two days of Navratri compared to last year, as detailed in a recent report.
This growth, fueled by GST-driven price reductions and robust festive enthusiasm, marks one of the most promising starts in recent times, according to data from market research agency Redseer.
The revised GST rates, implemented on September 22, have effectively decreased the prices of numerous popular goods.
For instance, large-screen televisions saw a reduction in GST from 28 percent to 18 percent, resulting in a 6–8 percent drop in retail prices.
The report noted that this adjustment has encouraged consumers to opt for premium models. Fashion items priced below Rs 2,500 now incur only 5 percent GST, while furniture has also been reclassified under the 5 percent slab, stimulating additional purchases.
Experts in the industry assert that this festive season differs from previous years. Rather than merely concentrating on discounts, consumers are now engaging in aspirational buying.
Shoppers from tier-2 and tier-3 cities are also contributing to this growth, indicating increased confidence and interest in discretionary spending.
E-commerce platforms are witnessing unprecedented traffic levels. Amazon reported over 38 crore customer visits in the first two days of its festive sale, marking its largest kickoff ever.
More than 70 percent of this traffic originated from outside India’s top nine metro cities, the report highlighted.
Popular categories such as smartphones, home appliances, fashion, and wellness products are experiencing robust growth, with premium gadgets like QLED and Mini-LED TVs, advanced washing machines, and flagship smartphones in high demand.
Small and medium enterprises are also reaping benefits from the sales frenzy. According to Amazon, over 16,000 SMBs have seen their sales triple in comparison to a regular day, with much of this boost stemming from non-metro areas.
Redseer noted that demand was so intense on certain platforms that apps slowed down or even crashed as users hurried to seize early-bird discounts and flash offers.
Experts believe the combination of GST 2.0 reforms and festive excitement has provided India’s e-commerce market with its most vigorous start in years, indicating a shift towards policy-driven growth in consumer expenditure.