From Jewellry to Clothing, Mobiles to Decor: GST Relief Revives Market Buzz

This Diwali people shopped heartily: The first Diwali after the cut in GST rates was wonderful for the people. Celebrated on 20 October, the markets were bustling with activity as middle-class families shopped to their heart's content. The reduction in GST has led to a surge in consumption, which has seen growth in the small and premium segments.

Vigor returned to the markets

After the slowdown in the market in September, the GST cut brought back the glow. Raymond reported a rise in demand for clothes priced between Rs 1,000 and Rs 2,500, while Swedish retailer Ikea reported a surge in demand for premium products. People are spending lavishly on lab-grown diamonds, clothes, home decor, and vehicles.

Last year, the middle class had limited spending due to stagnant wages and weak employment, but this time, tax relief and GST cuts encouraged them. The tax exemption given in the budget of the Central Government also gave relief to the middle class for both saving and spending.

Effect of GST cut

The new GST rates, implemented from September 22, reduced prices of everyday items—clothes, shoes, dishwashers, and small cars. “The GST cut brought positive consumer sentiment, especially in electronics and automobiles,” said the country selling manager of Ikea India. Due to this, a surge in purchases was seen.

Record-breaking sales

Amazon India claimed that this year's Big Billion Sale generated sales of Rs 276 crore, breaking previous records. Sales of premium mobile phones above Rs 30,000 grew 30%, and demand for TVs also remained strong. This Diwali proved to be a milestone for the e-commerce and retail sector.

Expert opinion

Analysts believe that GST reforms and tax relief have boosted demand. However, for long-term gains, it will be necessary to strengthen the production and supply chain. The GST cut added economic enthusiasm this Diwali, and a festive atmosphere was witnessed in the markets.