How Are GST Reforms and the Festive Season Impacting Consumer Sentiment?
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Synopsis
India's consumer sentiment has risen by 1.4 percentage points in October 2025, fueled by the festive season and significant GST reforms. This article dives into the details of the report by Ipsos, highlighting positive trends in consumer spending and regional sentiment across Asia-Pacific.
Key Takeaways
- India's consumer sentiment increased by 1.4 percentage points in October 2025.
- The festive season and GST reforms are pivotal in enhancing household savings.
- Indonesia leads the Asia-Pacific region with a 6.5 point increase in sentiment.
- No country surpassed the 60-point mark for the third month in a row.
- Mixed sentiment trends were observed in Latin America.
New Delhi, Oct 24 (NationPress) In October 2025, India's consumer sentiment experienced a rise of 1.4 percentage points, primarily influenced by the festive season and the recent GST reforms aimed at alleviating the indirect tax burden.
The festive atmosphere, combined with government-backed GST reforms designed to lower living expenses, appears to have enhanced household savings and boosted discretionary spending capacity.
"These elements have collectively resulted in a positive trend in India’s National Index score, indicating broader optimism surrounding jobs, personal finance, investments, and the overall economy," stated Ipsos, a renowned market research firm, in its recent report.
Regionally, consumer sentiment remained largely optimistic across the Asia-Pacific, with Indonesia witnessing the most significant increase at 6.5 percentage points.
Following Indonesia, Thailand saw a rise of 3.6 points, South Korea 2.6 points, Malaysia 2.1 points, and India 1.4 points.
“Since late September through October, India has been in a celebratory spirit, with numerous festivals creating a vibrant atmosphere nationwide. The festive season has evidently stimulated consumer spending, echoing the celebratory spirit," remarked Suresh Ramalingam, CEO of Ipsos India.
The combination of festive excitement and recent GST reforms aimed at minimizing living costs and enhancing household savings seems to have further elevated consumer sentiment, he added.
Conversely, Australia and Japan reported declines in consumer sentiment, decreasing by 2.1 and 2.0 percentage points, respectively.
The report indicated a mixed scenario in Latin America.
"Argentina experienced the largest global decrease in sentiment at -3.5 percentage points, followed by Colombia at -3.1 points. However, Brazil reported a notable increase of 2.2 points," according to the report.
Among the 30 countries surveyed, Indonesia boasts the highest National Index score at 58.8, reflecting a substantial monthly rise of 6.5 percentage points in consumer sentiment.
India ranks second with a National Index score of 58.4, indicating an increase of 1.4 points from the previous month.
For the third consecutive month, no country achieved or exceeded the 60-point benchmark, highlighting a general moderation in global consumer sentiment.
Point of View
I acknowledge the significance of the recent GST reforms and the festive season in shaping consumer sentiment. This positive shift not only reflects the spirit of celebration among households but also underscores the importance of government initiatives in enhancing economic stability. Our nation's approach towards improving the standard of living is crucial during these times.
NationPress
24/10/2025
Frequently Asked Questions
What factors contributed to the rise in consumer sentiment in India?
The rise in consumer sentiment in India can be attributed to the festive season and recent GST reforms aimed at easing the indirect tax burden.
How does India’s consumer sentiment compare to other countries in the Asia-Pacific region?
India's consumer sentiment rose by 1.4 points, while Indonesia experienced the highest gain at 6.5 points, followed by Thailand, South Korea, and Malaysia.
