Modi’s ₹6 Lakh Crore GST Boost: Festive Sales Jump 8.5% Across India, 9 Points

Delhi

💰 Modi’s GST Slash Sparks ₹6 Lakh Crore Festive Shopping Boom — 8.5% Jump in Retail Sales Across India |  Cars, Gold, Gadgets in High Demand |

1️⃣ Major Tax Cut Ignites Festive Spending Surge

• GST Reduction: Modi government slashed GST rates on 400 product categories from 22 September — India’s first major tax cut in a decade.

• Objective: Stimulate domestic consumption amid slowdown caused by the U.S. 50% import levy.

2️⃣ ₹6 Lakh Crore Retail Sales Milestone

• Period Covered: 22 September – 21 October (Navratri to Diwali).

• Total Spending: ₹6 trillion (₹6 lakh crore / $67.6 billion).

• Growth Rate: +8.5% YoY, per Bizom data shared with Bloomberg.

• Top Performing Sectors:

  • Jewellery

  • Electronics

  • Apparel

  • Furnishings

  • Sweets

3️⃣ Automakers See Record-Breaking Sales

• Key Players: Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai.

• Highlights:

  • Tata Motors: Delivered 1 lakh cars between Navratri–Dhanteras.

  • Mahindra & Mahindra: +27% tractor sales, aided by good monsoon.

  • Hyundai: +20% Dhanteras sales surge.

  • Maruti Suzuki: Demand spike for small cars like Alto, S-Presso, WagonR, Celerio.

4️⃣ Financial Services Ride the Spending Wave

• Banks & Fintechs:

  • Kotak Mahindra Bank and SBI Cards reported robust growth across multiple spending categories.

  • Credit card transactions and EMI-based purchases rose significantly.

• Result: Surge in consumer credit activity — reflecting confidence and liquidity boost.

5️⃣ Consumer Durables & Home Appliances Surge

• Crompton Greaves CFO Kaleeswaran A.: Reported “buoyancy in kitchen category.”

• Top Gainers: Pressure cookers, mixers, induction stoves, and air fryers.

• GST reduction made home appliances more affordable, triggering pent-up demand.

6️⃣ Supply Chain Adjustments & Market Reactions

• Short-Term Disruptions:

  • Companies cleared inventories at old GST rates before rollout.

  • Consumers delayed big-ticket purchases till late September to avail new prices.

• Net Impact: Temporary logistical strain, but long-term consumption boost.

7️⃣ Economists Urge Post-Festive Caution

• Nomura Analysts: Sonal Varma & Aurodeep Nandi caution that part of the surge may reflect pent-up demand.

• Next Key Data Window: December–January 2025 — will indicate if growth is sustainable or temporary.

8️⃣ Economic Significance at a Glance

9️⃣ Key Takeaways

• India’s GST cut has revived consumption momentum, especially in the auto, jewellery, and electronics sectors.

• The move reflects a strategic effort to boost domestic demand amid global trade pressures.

• Sustainability of this growth depends on post-festive spending patterns.

🔖 Disclaimer: The Profit India

The content above is for informational and analytical purposes only. It does not constitute investment advice or financial recommendation. Readers are encouraged to consult financial experts before making investment or policy-related decisions.

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