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India's retail sector saw a strong festive boost, with sales rising 11% during the 87-day GST Bachat Mahotsav period from August to October, according to the Retailers Association of India. Value-driven categories performed best, with apparel and footwear under INR 2,500-taxed at 12%-showing higher demand, while premium apparel above INR 2,500 in the 18% GST slab saw softer momentum. Food & Grocery, Jewellery and Footwear grew 12%, followed by Sports Goods at 11%. West India led regional growth at 13%. Quick Service Restaurants and furniture also performed well. RAI said the initiative improved price awareness and helped retailers better plan inventory, pricing and customer strategies.
The retail industry experienced a welcome lift in consumption earlier this past week as the Retailers Association of India (RAI) reported an 11% rise in sales during the 87-day festive cycle observed under the GST Bachat Mahotsav initiative. This period, which ran from early August through late October, showed noticeably stronger participation from consumers compared with the festive season in the previous year. Advertisement
Findings from RAI's 66th Retail Business Survey indicated sharper responsiveness towards value-focused categories falling under lower GST brackets. Apparel and footwear priced below INR 2,500, both taxed at 12%, witnessed higher buying interest. In contrast, premium apparel above INR 2,500, which recently shifted from a 12% to an 18% GST slab, recorded relatively softer momentum as buyers appeared cautious at elevated price points.
Across product segments, Food & Grocery, Jewellery and Footwear each posted 12% growth, while Sports Goods rose by 11%. Apparel and Beauty & Personal Care each registered a 9% expansion. Regionally, West India played a leading role with 13% growth, followed by North and East at 10% each, and South India at 9%, reflecting a fairly uniform consumption revival across markets.
RAI CEO Kumar Rajagopalan shared that retail had begun the year with growth in the range of 4-5%, progressing to 7-8% between April and July. He noted that the GST Bachat Mahotsav helped propel festive-period performance into double digits. He explained that categories offering stronger value, such as apparel under INR 2,500 and footwear under the 12% GST slab, maintained steady progression, whereas apparel priced above INR 2,500 demonstrated relatively lower demand after moving into the higher 18% GST bracket. He added that while consumer activity remained firm, discretionary purchases at higher price bands were approached more selectively. Seasonal buying, particularly in jewellery, contributed significantly to overall momentum, and the industry is now expected to track how these preferences evolve through the wedding season and end-of-season sale period.
Quick Service Restaurants remained among the most prominent outperformers during the festive cycle, reflecting a greater inclination towards dine-out experiences and consumption-driven outings. Furniture sales also rose, supported by home-improvement trends and festive refurbishments. The survey highlighted that the GST Bachat Mahotsav has enhanced consumer price awareness, enabling retailers to assess spending thresholds more accurately and refine decisions relating to inventory planning, pricing and customer engagement.
In the broader context, RAI continues to operate as a unified representative body for the retail sector, collaborating with government stakeholders to support employment, stimulate investment, expand consumer choice and strengthen competitiveness across the industry.
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