India's consumer economy has witnessed a significant surge in sales during the Navratri festival, reaching a decade-high, which is largely attributed to the Modi government's NextGen GST reforms. These reforms have rationalized tax slabs, reduced consumer prices, and unlocked spending power, fostering an environment of confident spending. The festive season, encompassing Onam, Durga Puja, Dussehra, and Navratri, accounts for approximately 40-45% of annual festive consumption, making it a crucial sales period.
The NextGen GST reforms, effective from September 22, 2025, represent a significant overhaul of India's indirect tax system. The reforms aim to simplify the tax structure, ease compliance, boost consumption, and fuel economic growth. A key feature of these reforms is the shift to a two-slab system of 5% and 18%, replacing the earlier multiple rate structure. A higher rate of 40% is levied on luxury and sin goods. The rationalization of GST rates has lowered the tax burden on both essential and aspirational items, encouraging consumers to upgrade to higher-value products.
Several sectors have experienced substantial growth during this Navratri season. The automobile industry has seen unprecedented demand. Maruti Suzuki doubled its sales compared to the previous year, delivering 1.65 lakh vehicles in eight days, including a record 30,000 cars on the first day. Mahindra & Mahindra reported a 60% year-on-year surge in SUV sales, while Tata Motors crossed 50,000 units. Hyundai saw SUVs dominate sales, with the Creta and Venue models leading the way. Hero MotoCorp reported a doubling of showroom footfalls, and Bajaj Auto also registered robust demand in two-wheelers.
The consumer electronics sector has also witnessed exceptional growth. Haier posted an 85% jump in sales, with premium TV models selling particularly well. Reliance Retail registered a 20-25% rise, driven by demand for smartphones, fashion, and large-screen TVs, while Vijay Sales saw growth above 20%.
The NextGen GST reforms are designed to benefit diverse segments of Indian society. Reduced costs for essential items and household products are expected to benefit the common man, while reduced taxation on personal care items and cosmetics aims to promote women's empowerment. The reforms also include measures to support MSMEs by easing costs and making them more competitive.
The GST Council has cleared next-generation reforms, moving towards a simplified two-slab structure of 5% and 18%, with a 40% rate for luxury and sin goods. This marks a major milestone in streamlining India's eight-year-old indirect tax regime. GST collections have consistently crossed ₹1.7 lakh crore monthly in 2024–25, demonstrating buoyancy.
Looking ahead, India's consumer market is projected to become the third-largest by 2030, with a market size of $6 trillion. Rising incomes, a young workforce, and urbanization are expected to drive consumption growth across the country. Consumer spending is projected to reach USD 4.3 trillion by 2030. The increasing participation of women in the labor force is also contributing to higher household incomes and increased spending on lifestyle and premium products.
