Retailers report 11% growth during festive period as GST reform improves consumption

Retailers Association of India (RAI) has reported an 11% growth during the 87-day festive period (1st August–26th October 2025 vis-a-vis 9th August–3rd November 2024), indicating a visible uplift in consumption due to GST cut.

RAI’s retail business survey shows that consumers responded more actively to value-driven categories that fell under lower GST slabs.

Apparel and footwear priced below Rs 2,500, both taxed at 12%, recorded stronger traction, while premium apparel above Rs 2,500, which moved from 12% to 18% GST, saw moderated demand.


Category-wise, food & grocery, jewellery, and footwear each grew by 12%, sports goods by 11%, while apparel and beauty/personal care registered 9% growth each. Regionally, West India led with 13% growth, followed by North and East at 10% growth each, and South India at 9% growth, reflecting a broad-based consumption pattern.

“Retail began the year with 4–5% growth and moved to 7–8% through April–July. The GST Bachat Mahotsav helped lift festive-period sales into double-digit territory. This suggests that while consumers remained active, they were selective in discretionary spending at higher price points. Most other categories, including jewellery, benefited from seasonal and occasion-led buying,” said Kumar Rajagopalan, CEO, Retailers Association of India.

Quick Service Restaurants (QSRs) were among the top-performing segments in this period, signalling a rise in dining and consumption-led experiences, while furniture benefited from home improvement and festive refurbishment purchases.