GST Bachat Mahotsav Boosts Festive Retail Growth Across India

Consumers Drive Strong Festive Sales Under Value-Focused GST Categories

India’s retail sector recorded 11% festive-period growth as the GST Bachat Mahotsav encouraged stronger value-based spending, especially in lower-taxed apparel and footwear categories.

The Retailers Association of India (RAI) has noted an encouraging 11% rise in sales during the 87-day festive window (1 August–26 October 2025 compared to 9 August–3 November 2024), signalling a clear revival in shopper sentiment following the GST Bachat Mahotsav initiative.

According to RAI’s 66th Retail Business Survey, customers displayed stronger interest in value-led categories placed in lower GST brackets. Apparel and footwear priced under ₹2,500 — both taxed at 12% — witnessed higher demand, whereas premium apparel above ₹2,500, which shifted from 12% to 18% GST, saw a more subdued response.

Across segments, Food & Grocery, Jewellery, and Footwear each grew by 12%, Sports Goods by 11%, while Apparel and Beauty/Personal Care posted 9% growth. Regionally, West India led consumption trends with 13% growth, followed by North and East at 10% each, and South at 9%, demonstrating robust nationwide participation.

“Retail started the year with modest 4–5% growth, rising to 7–8% between April and July. The GST Bachat Mahotsav pushed festive sales into double digits. Value-focused categories such as sub-₹2,500 apparel and footwear in the 12% GST bracket recorded steady momentum. However, apparel above ₹2,500, now in the 18% GST slab, showed weaker traction. This points to consumers remaining active but cautious with higher-ticket discretionary purchases. Seasonal categories like jewellery benefitted from festive and occasion-led buying. The industry will watch evolving consumer patterns closely through the wedding and end-of-season cycles,” said Kumar Rajagopalan, CEO, Retailers Association of India.

Quick Service Restaurants (QSRs) emerged as strong performers, reflecting increased preference for dining out and experience-led consumption. Furniture sales also grew, driven by home upgrades and festive refurbishments. The survey further indicates that the GST Bachat Mahotsav has sharpened consumer sensitivity to pricing, enabling retailers to better gauge spending thresholds and refine inventory planning, pricing strategies, and customer engagement approaches.