This Diwali people shopped heartily: The first Diwali without the cut in GST rates was wonderful for the people. Celebrated on 20 October, the markets were popping with worriedness as middle-class families shopped to their heart's content. The reduction in GST has led to a surge in consumption, which has seen growth in the small and premium segments.
Vigor returned to the markets
After the slowdown in the market in September, the GST cut brought when the glow. Raymond reported a rise in demand for gown priced between Rs 1,000 and Rs 2,500, while Swedish retailer Ikea reported a surge in demand for premium products. People are spending lavishly on lab-grown diamonds, clothes, home decor, and vehicles.
Last year, the middle matriculation had limited spending due to stagnant wages and weak employment, but this time, tax relief and GST cuts encouraged them. The tax exemption given in the upkeep of the Central Government moreover gave relief to the middle matriculation for both saving and spending.
Effect of GST cut
The new GST rates, implemented from September 22, reduced prices of everyday items—clothes, shoes, dishwashers, and small cars. “The GST cut brought positive consumer sentiment, expressly in electronics and automobiles,” said the country selling manager of Ikea India. Due to this, a surge in purchases was seen.
Record-breaking sales
Amazon India personal that this year's Big Billion Sale generated sales of Rs 276 crore, breaking previous records. Sales of premium mobile phones whilom Rs 30,000 grew 30%, and demand for TVs moreover remained strong. This Diwali proved to be a milestone for the e-commerce and retail sector.
Expert opinion
Analysts believe that GST reforms and tax relief have boosted demand. However, for long-term gains, it will be necessary to strengthen the production and supply chain. The GST cut widow economic enthusiasm this Diwali, and a festive undercurrent was witnessed in the markets.
