New Delhi, Sep 29 (NationPress) India’s Navratri economy is gaining traction as strong festive currents uplift e-commerce sales, projected to reach Rs 1.2 lakh crore. UPI transactions have surpassed 20 billion in August, while MSME festive credit demand is anticipated to increase by 35–40 percent to Rs 3.45 lakh crore, according to a report released on Monday.

As per Smallcase's findings, nine sectors, such as auto components, FMCG, defence, and clean energy, are expected to thrive due to a mix of festive demand, policy changes, and foundational growth factors.

The report emphasizes that Navratri 2025 presents investors with a prime chance to align their portfolios with India's most promising growth narratives, fueled by strong consumption trends and supportive policies, alongside unprecedented retail engagement in capital markets.

It notes that the automotive sector is primed for a festive boost, driven by GST reforms and favorable purchasing periods likely to enhance consumer sentiment.

Retail sales in August 2025 saw a year-on-year increase of 2.84 percent (with two-wheelers at 2.18 percent and passenger vehicles (PVs) at 0.93 percent), resulting in wholesale dispatches of 3.22 lakh PVs and 18.34 lakh two-wheelers.

The current high level of PV inventories (averaging 56 days) suggests robust festive deliveries ahead.

With festive consumption on the rise, supported by a headline CPI of 1.69 percent and a remarkable 20 billion UPI transactions valued at Rs 24.85 lakh crore in August, a significant surge in gold demand is also anticipated this Navratri–Diwali.

The report additionally notes that U.S. federal debt has escalated from $5.7 trillion in 2000 to $35.5 trillion in 2024, transitioning from a $240 billion surplus to a $1.9 trillion deficit, with inflation rates around 2.7–2.9 percent and interest rates remaining high at 4.5–4.6 percent.

Meanwhile, solar power has seen a 31 percent year-on-year increase in 2025, with India aiming for 500 GW of renewable energy capacity by 2030.

The penetration of electric vehicles in two-wheelers is projected to reach 25 percent by FY30, bolstered by initiatives like PM E-DRIVE, according to the report.

Moreover, Smallcase indicates that government-led capital expenditure remains strong, with a central allocation of Rs 11.21 lakh crore for FY26 (equating to 3.1 percent of GDP) and a Rs 1.5 lakh crore interest-free loan provision for states.

GST reductions on cement (from 28 percent to 18 percent) could decrease project costs by 3–5 percent, while construction equipment volumes are forecasted to grow by 2–5 percent in FY26 (1.43–1.47 lakh units).

The report also reveals that defence production reached Rs 1.50 lakh crore in FY25, with exports hitting a record Rs 23,622 crore. The Ministry of Defence has signed 193 procurement contracts valued at Rs 2.09 lakh crore, with 92 percent awarded to domestic companies.

Companies engaged in capital markets, infrastructure, and consumer goods are expected to witness significant retail participation and growth this Navratri, as per the report.