The country’s GDP will grow at the rate of 7.5 percent
The pace that the country’s economy has gained in the second quarter (July to September) has surprised everyone. The research team of State Bank of India (SBI), the country’s largest government bank, said on Tuesday (18 November 2025) that in this quarter India’s real gross domestic product (GDP)GDP) The growth rate could be 7.5% or even more. This is much higher than the Reserve Bank of India (RBI) estimate of 7%. Experts believe that all this is the result of the festive boom that came after the cut in GST rates, which created a shopping environment in the market.
Shopping changed the mood of the market
According to SBI Research, this growth has been supported by several factors, including a pick-up in investment activity, improvement in rural consumption, and a boom in the services and manufacturing sectors. The report clearly states that the rationalization of GST was a major structural reform, which strengthened the spirit of celebration. Simply put, the savings you got in your pocket due to reduction in GST, you spent it lavishly during the festive season. The impact of these festive sales was so profound that the percentage of indicators showing a rise in key indicators of consumption and demand increased from 70% in the first quarter to 83% in the second quarter.
bat-bat of small towns
This boom is not just air, but it is clearly visible in your spending pattern. SBI Research has analyzed the spending patterns of credit and debit cards. Tremendous growth has been recorded in credit card spending in categories like auto, grocery stores, electronics, furniture and travel.
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The most interesting thing is that the demand was not limited to metros only. Demand has increased fastest in mid-tier cities. E-commerce sales have been positive in almost all cities. This means that the benefits of GST reduction and the trend of online shopping have now reached even small towns. Common consumers like you and us are expected to get monthly savings of up to 7% from the GST cut, which will further increase consumption.
New record of GST collection
There has been a tremendous increase not only in everyday items but also in expensive purchases. Car sales volumes witnessed double-digit (19%) growth across all regions. Highest growth was recorded in rural areas. Of the cars sold, 39% were priced above ₹10 lakh. This means that people’s confidence has increased and they are no longer hesitating to buy big and expensive items.
The direct impact of this increased purchasing will also be seen on the government treasury. SBI Research estimates that the gross domestic GST collection in November 2025 could be around ₹1.49 lakh crore. If IGST and cess on imports are added, the total GST collection can cross the figure of ₹ 2 lakh crore.