GST Bachat Mahotsav Boosts Retail Industry as Customers Show Renewed Willingness to Spend
The Retailers Association of India (RAI) reported an impressive 11% growth during the 87-day festive period from 1 August to 26 October 2025, compared with 9 August to 3 November 2024. This growth signals a clear uplift in consumer spending, driven by the GST Bachat Mahotsav framework.
According to RAI’s 66th Retail Business Survey, shoppers responded strongly to value-led categories, particularly those falling under lower GST slabs. For example, apparel and footwear priced below ₹2,500, taxed at 12%, recorded higher traction. However, premium apparel above ₹2,500, which recently shifted from 12% to 18% GST, witnessed moderated demand as consumers became more selective in discretionary spending.
Category performance remained encouraging. Food & Grocery, Jewellery, and Footwear each grew by 12%, while Sports Goods increased by 11%. Meanwhile, Apparel and Beauty/Personal Care achieved 9% growth. Regionally, West India led with 13% growth, followed by North and East at 10% each, and South India at 9%, demonstrating broad-based consumption momentum.
Commenting on the results, Kumar Rajagopalan, CEO, Retailers Association of India, said:
“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.”
Furthermore, Quick Service Restaurants (QSRs) emerged among the strongest-performing segments, reflecting a clear increase in dining and experience-led spending. Additionally, the furniture category gained from home improvement and festive refurbishment trends.
The survey also indicates that the GST Bachat Mahotsav sharpened consumer price awareness, enabling retailers to better analyze purchase thresholds. Therefore, retailers can now plan inventory, pricing, and engagement strategies more effectively based on precise market behavior.
