New Delhi: In a shot in the arm for the Modi government and a huge relief for the Indian consumers, the data from retail intelligence platform Bizom mentiobed that the raforms introduces in the tax structure and GST, helped people to spend on luxury items such as cars and kitchenware during the month-long festival season. The spurge helped the economy which has been hit with a 50 per cent import levy by the United States.
The Bloomberg report quoted Bizom data to state that between September 22 and October 21 the spending surged 8.5% as compared to the same time last year.
GST Tax Cuts: Igniting India’s Consumer Spending Surge
BC Bhartia, national president of Confederation of All India Traders, said that sales worth more than Rs 6 trillion ($67.6 billion) was recorded. The maximum amount of the total money was pent on buying jewellery, electronics, apparels, furnishing, and sweets.
To tackle the US imposed tariff impact on the Indian economy, the Modi governmnet slashed the Goods and Services Tax from September 22 for almost 400 categories of products which generated a god response.
Automobile majors such as Tata Motors Passenger Vehicles Ltd, Mahindra & Mahindra Ltd and Maruti Suzuki India Ltd recorded superb sales after the GST cuts were rolled out. Car sales hit record high in October 2025.
Financial service firms witness strong spending
Notably, financial service firms such as SBI Cards & Payments Services Ltd and Kotak Mahindra Bank Ltd recorded strong growth in spending across categories.
“We saw buoyancy in the kitchen category” during the festival time, Kaleeswaran who is associated with Crompton Greaves Consumer Electricals Ltd, told Bloomberg News.
The report furtehr mentioned that the tax changes hit supply chains and sales of some Indian businesses. After PM Modi announced GST rate cut in August, people waited for September 22 to make the big ticket purchases.
Crompton’s Kaleeswaran is confident about sales to remain strong through January and beyond.