GST cuts to unleash festive spending spree across consumer products
Consumer product companies spanning fast-moving consumer goods, automobiles and durables say the GST rate rationalisation will provide a decisive lift to consumption in the festive season.
Industry leaders report they are preparing to pass on benefits to buyers across categories, setting the stage for what many describe as the most buoyant festival period in years.
“The automotive industry would be a direct beneficiary of faster economic development. In particular, Maruti Suzuki is grateful for small cars being placed in the 18 per cent GST basket. The 10 per cent lower tax will stimulate a flagging market, and many more people will be able to buy safer and more comfortable means of mobility,” said R C Bhargava, Chairman of Maruti Suzuki India.
FMCG firms say the rate cut will spark stronger demand recovery in urban markets, where spending has slowed, while further strengthening consumption in rural regions.
Saugata Gupta, MD & CEO of Marico Ltd, said: “The Next-Gen GST Reforms announced by the Government will drive India towards a consumer-friendly economy. By making essential consumer products more affordable, especially in the run-up to the festive season, these reforms will play a pivotal role in stimulating economic momentum and building long-term growth in the FMCG sector.”
Price drops across a wide range of essentials are also expected, according to Naveen Malpani, Partner and Consumer Industry Leader at Grant Thornton Bharat.
“Lower prices, higher affordability, and rising disposable incomes are expected to drive rural markets, strengthening India’s consumption-led growth story. In urban areas, consumer savings from GST cuts are likely to push demand for premium FMCG products. In recent weeks, demand had softened as consumers waited for clarity on GST rationalisation. So retailers are expecting a strong rebound in festive sales, especially in electronics, home appliances and personal care categories. This festive season could be one of the most buoyant in recent years,” he said.
Mohit Malhotra, CEO of Dabur India, added that the rate cut will serve as “a catalyst for demand”.
In consumer durables, categories such as air-conditioners, large screen televisions and dishwashers are expected to see price cuts of 7-8 per cent. “The move will drive premiumisation as consumers will upgrade to larger screen TVs and will also encourage purchase of more energy-efficient air conditioners,” said N S Satish, President of Haier Appliances India.
Published on September 4, 2025
