GST Bachat Mahotsav Boosts Retail Recovery and Consumer Spending
The GST Bachat Mahotsav has provided strong momentum to India’s retail sector, driving a clear rebound in festive shopping sentiment. According to the Retailers Association of India (RAI), retail sales grew by 11% during the 87-day festive period from 1st August to 26th October 2025, compared to the same period last year. The rise reflects a renewed willingness to spend, supported by the ongoing savings-led initiative.
Value-Driven Categories Lead Growth
RAI’s 66th Retail Business Survey indicates that shoppers became more responsive to lower GST-slab categories. Apparel and footwear priced below ₹2,500, taxed at 12%, recorded strong demand. However, premium apparel above ₹2,500, which shifted from 12% to 18% GST, slowed down due to selective discretionary spending.
Category-Wise Festive Sales Growth
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Food & Grocery, Jewellery, and Footwear: up 12%
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Sports Goods: up 11%
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Apparel and Beauty/Personal Care: up 9%
Regionally, West India led with 13% growth, followed by North and East with 10%, and South India with 9%, showing widespread positive consumer activity.
Industry Outlook and Consumer Sentiment
“Retail began the year with 4–5% growth and moved to 7–8% through April–July. The GST Bachat Mahotsav helped lift festive sales into double-digit territory,” said Kumar Rajagopalan, CEO, Retailers Association of India. He added that value-focused categories sustained growth, while premium segments faced moderated demand.
Most lifestyle categories, including jewellery, benefited from seasonal and wedding-related buying. The sector will now observe purchasing patterns through the upcoming wedding and end-of-season sale period.
Experiences and Home Improvement Also Rise
Quick Service Restaurants (QSRs) emerged as one of the strongest performing segments, reflecting consumers’ growing preference for experience-based spending. Meanwhile, the furniture category received a boost from festive home renovation and upgrade purchases.
The survey also notes that the GST Bachat Mahotsav has sharpened price sensitivity. As a result, retailers can better plan inventory, pricing, and promotional strategies aligned with consumer spending thresholds.
