Modi govt's GST cut ignites festive shopping boom as Indians spend Rs 6 trillion: Report
GST Cut impact On Economy: The Modi Govrnment's Goods and Services Tax (GST) cut announcement, effective from September 22, 2025, encouraged Indians to spend during the month-long festivity on a wide range of products, from cars to electronics, kitchenware and more. The surge in spending activity gave a strong boost to the economy, which was hit by the sweeping 50 per cent tariffs by the US.
The GST reduction not only revived consumer confidence but also helped businesses increase sales and production. Businesses rushed to stock inventories and worked on holidays to meet the demands.
According to a Bloomberg report, the Modi government slashed GST for almost 400 categories of products. As a result, sales crossed Rs 6 trillion with items like jewellery, electronics, apparels, furnishing and sweets witnessing massive demand.
As per data from retail intelligence platform Bizom shared with Bloomberg News, spending between September 22 and October 21 increased by 8.5 per cent from the same time last year.
GST Cut Impact On Car Sales
Automobile manufacturers were among the biggest beneficiaries of the GST cut as they reported record sales. Following GST cuts, almost all the auto companies reduced the prices of their models, attracting buyers loosened their purse
Maruti Suzuki India, Tata Motors Passenger Vehicles and Mahindra & Mahindra saw huge surge in monthly sales. Tata Motors Passenger Vehicles reported a 26.6 per cent increase in total sales at 61,295 units in October as compared to 48,423 units in the same month last year. The record-breaking monthly wholesales for the second consecutive month at 61,295 units was led by SUVs with over 47,000 units sold, achieving the highest-ever 77 per cent share in monthly sales.
Likewise, Maruti Suzuki India reported a 7 per cent growth in total sales at 2,20,894 units as compared to 2,06,434 units in the same month last year. Total domestic sales, including commercial vehicles, stood at an all-time high of 1,80,675 units as against 1,63,130 units in the same month last year, up 10.75 per cent.
