Festive retail takes off as tax cuts fuel consumer confidence

From apparel to electronics, salons to gifts, India’s festive shopping rush has kicked off earlier than usual and retailers say consumer sentiment is the strongest it’s been in nearly a decade. With tax reforms boosting disposable income and goods and services tax (GST) cuts making products more affordable, this year, it’s not just the festival spirit driving footfalls; it’s fatter wallets. Retailers are hopeful the momentum will carry through Diwali and beyond, making 2025 one of the strongest consumption cycles in recent years.

Retailers report a noticeable spike in sales and footfall since September 22, when lower GST rates came into effect. Combined with income tax cuts announced in the budget, the reforms have sparked optimism across the retail sector. The hope: that this festive season will bring cheer not just to homes, but to bottom lines.

Pushpa Bector, Senior Executive Director, DLF Malls, said, “People are, I think, feeling a little relieved both because of the income tax rate cut. May I add the Central Government Pay Commission and the other one, being, of course, the GST Bonanza. I do see that people are relishing what has happened and really understanding that, yes, there is more money in their wallet and hence it’s a good Diwali.”

She added, “Along with this, DLF has launched The DLF shopping festival to give value and excitement to consumers and the new DLF reward or loyalty program, which will help customers with unique offers. The timing of the festive season and a good wedding season ahead gives us confidence that this quarter should see sales better than last year’s same quarter.”

Echoing this sentiment, Arjun Gehlot, Director, Ambience Malls, noted, “On a footfall-wise, we have seen an increase of 15% since the GST cuts have been announced. We are anticipating an increase of at least 15% in sales. The mid-segment brands are anticipating good growth this year. Both malls are doing pretty well. We’ve seen a growth of 10-15% in both properties. Gurgaon is experiencing more than 1 lakh people on Friday, Saturday and Sunday each. And Vasant Kunj property also gets around a footfall of let’s say 75,000 on the weekend.”

Malls and stores are amplifying the momentum with their own offers, loyalty programs, discounts, and shopping festivals. While luxury brands remain steady, it’s the mid-segment shoppers who are driving the surge.

“With overall footfall increase of more than 8% and sales soaring up to 30% compared to last year, the festival brought remarkable results. With LED panels up by 60%, refrigerators by 100%, and washing machines up by 30%, electronic items are observed as the top-performing category,” said Abhishek Bansal, Managing Director, Pacific Malls.