The GST Bachat Mahotsav has created strong festive demand in the retail sector. The Retailers Association of India (RAI) reported 11% growth during the 87-day festive season from 1 August to 26 October 2025, compared to the same period in 2024. This surge clearly reflects improved consumption driven by savings-focused initiatives.
Value-Based Categories Drive Higher Sales
According to RAI’s 66th Retail Business Survey, consumers actively purchased value-led products with lower GST rates. For example, apparel and footwear priced below ₹2,500, taxed at 12%, saw stronger traction. However, demand softened for premium apparel above ₹2,500, which shifted from 12% to 18% GST.
Category and Regional Growth Trends
Furthermore, Food & Grocery, Jewellery and Footwear each recorded 12% growth, while Sports Goods grew 11%. Additionally, Apparel and Beauty/Personal Care increased 9%.
Regionally, West India led with 13% growth, followed by North and East at 10%, and South India at 9%. This indicates broad-based consumer participation.
Industry Perspective
“Retail began the year with 4–5% growth and moved to 7–8% through April–July. The GST Bachat Mahotsav helped lift festive-period sales into double-digit territory. Value-led categories, including apparel under ₹2,500 and footwear in the 12% GST slab, saw steady growth. However, apparel priced above ₹2,500, which moved from 12% to 18% GST, showed comparatively lower traction. This suggests that while consumers remained active, they were selective in discretionary spending at higher price points. Most other categories, including jewellery, benefited from seasonal and occasion-led buying. The industry will now monitor how this consumer preference evolves through the wedding and end-of-season period,” said Kumar Rajagopalan, CEO, Retailers Association of India.
QSR, Furniture and Consumer Behaviour Insights
Moreover, Quick Service Restaurants (QSRs) emerged as one of the strongest performing categories, showing growth in dining and out-of-home experiences. Furniture also performed well due to festive home upgrades.
The survey adds that the GST Bachat Mahotsav has increased consumer price awareness, helping retailers refine pricing, inventory and engagement strategies.
