Economists cite GST reforms, consumer sentiment behind Diwali sales
image for illustrative purpose
New Delhi: India experienced a bumper festive season this year, with sales of consumer goods, automobiles, jewellery, handicrafts, and decorative items recording a sharp surge during Diwali, signalling renewed consumer confidence and economic momentum, economists said on Wednesday.
Dr Manoranjan Sharma, Chief Economist at Infomerics Ratings, stated that the surge reflects a strong revival in domestic demand and a growing preference for Indian-made products. “There has been a significant increase in sales of consumer electronics, textiles, jewellery, handicrafts, and decorative items. This reflects rising consumer optimism that has provided a major boost to domestic industries,” he said.
Sharma noted that GST reforms and recent income tax reliefs played a key role in driving festive spending. “We believed from the beginning that the Diwali season would positively impact the economy. Goods worth approximately Rs5.40 lakh crore were traded this year, with consumer electronics and auto sales rising by 25–30 per cent,” he added.Echoing similar sentiments, economist Parambir Kumar Sarkar said that the GST rate reduction announced in September brought down prices of FMCG, consumer electronics, and leather goods, setting the stage for robust festive demand.
