Article Today, Hyderabad:
This Diwali is not just about lights and spirituality — it has turned into an economic celebration. According to the Bank of Baroda’s estimates, India’s total festive season spending is expected to range between Rs.12 lakh crore and Rs.14 lakh crore. Lower GST rates, income tax relief, reduced lending rates, and post-pandemic consumer confidence are driving this record growth. The spending momentum, starting from Dussehra and continuing until Christmas, has significantly boosted key sectors such as automobiles, clothing, electronics, travel, and gifting.
Auto Sector Accelerates with GST Relief
The recent GST 2.0 reforms have given the automobile industry a strong push. With reduced taxes on passenger and two-wheeler vehicles, consumers are directly benefiting from lower prices. Analysts project automobile sales between Rs.1.5 lakh crore and Rs.2 lakh crore this season. Leading manufacturers like Maruti Suzuki have rolled out festive discounts, drawing large crowds to showrooms. The savings from tax cuts are translating into vehicle purchases, especially in rural areas where demand for SUVs has increased substantially.
Tax Relief Boosts Apparel and Footwear Sales
Middle-class purchasing power has risen due to income tax relaxations, leading to a surge in the apparel and footwear segments. Industry data suggests sales could touch Rs.2.8 to Rs.3 lakh crore during this season. Online retail expansion and changing consumer habits are further supporting this growth. Direct tax savings are allowing consumers to spend more freely, giving retail markets across metro and tier-2 cities a strong festive uplift.
E-Commerce and Electronics Lead Online Boom
The combination of low interest rates and strong digital retail platforms has pushed electronic goods sales to new highs. The travel sector alone may generate business worth Rs.60,000 to Rs.70,000 crore, while electronics now account for nearly 8% of total festive spending. Online giants Amazon and Flipkart have launched discounts of up to 80%, fueling an unprecedented surge in smartphone and home appliance purchases. The e-commerce sector is witnessing nearly 23% growth, surpassing Rs.32,000 crore in sales.
Gifting and Food Markets Record Sharp Rise
The revival of post-pandemic sentiment has reignited consumer enthusiasm for sweets, dry fruits, and gift items. The food and grocery category now contributes about 13% to total sales, while gifting accounts for another 8%. Decorative products, festive hampers, and traditional snacks have seen significant demand spikes. The Confederation of All India Traders (CAIT) estimates that nearly 70 crore consumers will participate in this year’s Diwali shopping wave.
Sustained Growth Expected Beyond Festive Season
Economists view this record-level consumption as a positive indicator of sustained recovery. The ongoing surge reflects renewed confidence among Indian households and the stabilising impact of recent tax reforms. Experts suggest that this Diwali’s Rs.14 lakh crore business boom is not a one-time phenomenon but a sign of lasting economic momentum that could extend well beyond the festive quarter.
