Why is India Experiencing Record-Breaking Festive Sales?
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Synopsis
The ongoing festive season in India is witnessing unprecedented sales across multiple sectors, including automobiles and gold. With strong consumer demand and the positive effects of GST reforms, this could be one of the most lucrative festive seasons in recent years.
Key Takeaways
- Record festive sales are being driven by strong consumer demand.
- The GST 2.0 reforms have positively impacted the market.
- Gold coins and lightweight jewellery are leading the demand.
- Silver sales, especially in coins and puja items, have surged significantly.
- Overall transactions during Dhanteras exceeded Rs 1 lakh crore.
New Delhi/Mumbai, Oct 19 (NationPress) This festive season in India is setting astonishing records in sales across various sectors, including automobiles, gold, and electronics. The surge is primarily fueled by strong consumer demand alongside the GST 2.0 reforms.
On Dhanteras, purchases of gold and silver soared over 25 percent in value, as consumers anticipate a continued price rally, while the auto industry experienced significant growth in sales.
Analysts note a revitalized passion for gold purchases during this festive time.
The All India Gem and Jewellery Domestic Council (GJC) reported a notable increase in gold and silver transactions on Dhanteras, thanks to a recent price correction. “We project festive sales to surpass Rs 50,000 crore. Consumer sentiment remains optimistic, thanks to strategic buying and early wedding purchases,” stated Rajesh Rokde, Chairman of GJC.
Demand for gold coins is currently leading the market, with hallmark-certified lightweight jewellery also gaining popularity. Silver products, particularly coins and puja items, have surged nearly 40 percent compared to last year.
“There’s a 15 percent rise in self-purchase trends, with younger consumers opting for lightweight, responsibly sourced jewellery to commemorate personal milestones,” Rokde added.
Amit Kamat, Chief Commercial Officer of Tata Motors Passenger Vehicles Ltd, mentioned that this year’s Dhanteras and Diwali deliveries will occur over two to three days, aligning with auspicious timings.
“Demand has been strong, and the GST 2.0 reform has further boosted momentum. We anticipate delivering over 25,000 vehicles in this timeframe,” he noted.
The positive trend is fueled by the festive spirit, a thriving market, and the beneficial impacts of GST 2.0.
“We are experiencing robust customer demand, with expected deliveries around 14,000 units — nearly 20 percent higher than last year,” said Tarun Garg, Whole-time Director and COO of Hyundai Motor India Limited (HMIL).
Extensive shopping activity was reported throughout India on Dhanteras, with total trade estimated to exceed Rs 1 lakh crore, marking one of the most prosperous festive seasons in recent memory. Gold and silver sales alone accounted for more than Rs 60,000 crore, while markets in Delhi recorded transactions exceeding Rs 10,000 crore, attributed to a rising demand for local products, according to CAIT.
Point of View
It is crucial to highlight the transformative impact of GST 2.0 reforms on India's economy. These changes have fostered a robust consumer environment, paving the way for record-breaking festive sales. It’s vital for us to continue monitoring these trends and their implications for businesses and consumers alike.
NationPress
19/10/2025
Frequently Asked Questions
What sectors are witnessing record sales during the festive season?
Sectors such as automobiles, gold, electronics, and home appliances are experiencing significant sales growth driven by robust consumer demand and GST 2.0 reforms.
How much are festive sales expected to surpass?
Festive sales are projected to exceed Rs 50,000 crore, with gold and silver sales contributing significantly.
What trends are emerging among younger consumers?
Younger consumers are increasingly opting for lightweight, responsibly sourced jewellery as personal purchases, marking a 15 percent increase in self-purchase trends.
