Consumer demand has witnessed a sharp surge this festive season, with sales rising by 23–25 per cent in the first two days of Navratri compared to last year, according to a new report.
Market research firm Redseer revealed that this growth, largely driven by GST-led price cuts and robust festive sentiment, marks one of the strongest starts in recent years for India’s retail and e-commerce markets.
The introduction of new GST 2.0 reforms on September 22, 2025, has directly lowered the cost of many popular products, fueling consumer enthusiasm across categories.
Large-screen televisions have seen the biggest impact, with GST reduced from 28 per cent to 18 per cent, resulting in a 6–8 per cent drop in retail prices. This has nudged buyers towards premium QLED and Mini-LED models, reshaping consumer preferences.
Similarly, fashion items under Rs 2,500 now attract just 5 per cent GST, while furniture has also been moved to the 5 per cent slab, prompting higher purchase volumes.
Industry experts highlighted that this festive season stands apart from previous years. Instead of focusing solely on discounts, consumers are increasingly making aspirational and lifestyle-driven purchases, including flagship smartphones, advanced washing machines, premium gadgets, and wellness products.
The report emphasizes that shoppers in tier-2 and tier-3 cities are significantly driving growth, reflecting rising consumer confidence and growing discretionary spending power.
E-commerce platforms have seen record-breaking traffic during this festive window. Amazon reported over 38 crore customer visits in the first two days of its festive sale, its biggest start ever.
Notably, more than 70 per cent of this traffic came from outside India’s top nine metro cities, signaling a major shift in India’s digital retail landscape.
The festive sales are also boosting India’s SMB ecosystem. According to Amazon, over 16,000 SMBs have tripled their sales compared to a normal day, with much of this momentum originating from non-metro markets.
Redseer noted that the demand was so strong on certain e-commerce platforms that apps slowed down or even crashed as users rushed to grab early-bird discounts and flash deals.
The festive season of 2025 has begun on a historic note, with GST reforms and festive cheer combining to push sales up by 23–25 per cent in just the first two days of Navratri. Unlike earlier years, consumer sentiment this time reflects aspirational buying behavior, premium product choices, and deeper participation from tier-2 and tier-3 markets.
With e-commerce giants witnessing record-breaking traffic, and small businesses enjoying unprecedented growth, this Navratri season is shaping up to be India’s strongest festive shopping wave in years. Experts believe this is a sign of policy-driven growth in consumer spending, laying the foundation for a robust festive quarter ahead.