That’s a major headline signifying a strong revival in domestic consumption. The figure of ₹6 lakh crore (approximately $72 billion) represents the massive scale of retail sales during India’s recent festival season, driven primarily by significant cuts to the Goods and Services Tax (GST).

Here are the full details on the GST cut, the festival shopping boom, and its impact:

💰 The Festival Shopping Boom: Key Figures

• Total Sales Value: Sales across India during the month-long festive period (roughly September 22 to October 21, 2025, spanning Navratri and Diwali) are estimated to have reached ₹6 trillion (₹6 lakh crore) or approximately $72 Billion.
• Growth Rate: This figure represents an increase of 8.5% in consumer spending compared to the same festive period last year, according to data from retail intelligence platforms.
• Government’s Goal: The government had stated that the GST cut was aimed at injecting an estimated ₹2 lakh crore back into the economy by leaving more money in consumers’ hands.

✂️ The Driving Force: GST Rate Cuts

The surge was primarily sparked by the Indian government’s “Next-Gen” GST reforms, which involved the first major rate reduction in nearly a decade.

• GST Structure Revision: The government moved towards a simplified two-slab GST system of 5% and 18%, reducing or eliminating the higher 28% slab on many categories.
• Products Affected: The cuts were applied to almost 400 categories of products, including:
  • Automobiles (especially small cars)
  • Electronics and White Goods (ACs, Dishwashers, Kitchenware like pressure cookers)
  • Apparel and Footwear (especially those below a certain price point, like ₹2,500)
  • Household Items and Consumer Durables

🚗 Sectoral Impact and Highlights

The benefit of the price reductions was seen across major consumption sectors:

• Automobiles (The Biggest Beneficiary): Carmakers like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra reported record monthly sales. Hyundai saw a 20% jump in sales on Dhanteras alone, as the tax cut made small cars significantly cheaper, attracting first-time buyers and those upgrading from two-wheelers.
• Consumer Durables & Electronics: Companies like Crompton Greaves reported a high “buoyancy in the kitchen category,” with strong demand for pressure cookers and mixers directly benefiting from lower tax rates.
• Retail and Apparel: The Confederation of All India Traders (CAIT) confirmed a massive surge in demand across categories like jewellery, apparel, furnishing, and sweets. Small businesses saw a significant boost, with some in sectors like auto accessories reporting demand expected to rise by 20-25% in the coming months.
• Rural Demand: The GST cut, combined with a good monsoon season, significantly boosted rural incomes and tractor sales (Mahindra saw a 27% jump in tractor sales), indicating that the consumption recovery was widespread.

❓ Caveats and Future Outlook

While the numbers are record-breaking, economists have advised caution:

• Pent-Up Demand: Part of the sales surge is attributed to pent-up demand. Many consumers postponed large purchases in the months leading up to the GST cut announcement, leading to a sharp rebound after the lower prices took effect on September 22.
• Credit Boom: The festive spending was also fueled by a massive surge in bank credit, which more than doubled during the September-October period compared to the previous year, showing increased borrowing for vehicle and consumer durable purchases.
• Sustainability: The key question for the economy remains whether this consumption buoyancy can be sustained beyond the festive season and into the December-January period, or if underlying issues like slower income growth will dampen demand.

The government, however, remains optimistic, projecting that this surge in consumption will contribute significantly to the country’s GDP growth for the financial year.