Tax Cuts Impact: Despite Diwali having passed, markets across the country are currently in full swing. This is the first time in 2025 that shopping has not declined after the festival ended. Sales at stores, shopping malls, and e-commerce platforms are as strong as they were before and during Diwali. According to companies, this year’s post-festival demand is 10 to 20 percent higher than normal, a much stronger sign than in previous years.
Sales Growth Seen at Major Companies
From electronics to lifestyle and jewelry, almost every sector has reported better-than-expected post-Diwali sales. Sanjay Chitkara, Chief Sales Officer at LG Electronics, said that there has been no slowdown in demand at all. The company is running its plants at 85 percent capacity in double shifts, indicating that both production and consumption are increasing rapidly. Similarly, Haier, Titan, Raymond, Lifestyle International, Edelweiss Agri Business, and Kalyan Jewellers have also reported strong post-festival sales this year.
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Wedding Season Strengthens Market
Many weddings postponed in North India are taking place in December and January, leading to increased purchasing pressure. Sales of clothing, jewelry, home appliances, and gifts continue to surge. According to Lifestyle International, there are more than 12 auspicious dates this quarter alone, showing no signs of a slowdown in purchasing. The jewelry sector is also thriving, with Titan and Kalyan Jewellers reporting that the 3 to 6 percent drop in gold prices has directly impacted consumer purchases.
Tax Cuts Boost Consumer Confidence
The impact of the GST and income tax cuts implemented this year is also clearly visible in the markets. The reduced GST on nearly 99 percent of consumer goods is lighting consumer budgets, while income tax exemptions of up to ₹12 lakh have boosted the purchasing power of the salaried class. Consumption is picking up as people have more savings.
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Income also boosted sales
A normal monsoon and low inflation have supported the rural economy this year. Sales of bulk packages like edible oil, rice, sugar, and flour have increased. According to Report, November sales have shown even stronger growth compared to October. Furthermore, the colder weather is beginning to take hold, leading to a surge in purchases of woolen clothing, heaters, and other winter products.