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GST Cuts Ignite Diwali Retail Boom, Boost Consumer Spending

• By  Textile Excellence
• November 04, 2025

Recent Goods and Services Tax (GST) relief has fuelled a robust surge in consumer spending this Diwali, lighting up the retail sector from apparel to home goods. The rationalization of tax rates provided a much-needed boost to household budgets, enabling middle class shoppers to increase discretionary purchases despite prevailing inflation.

The textile and lifestyle industries have emerged as significant gainers. Major apparel player Raymonds witnessed a strong demand revival for its mid segment products after a relatively slow September. Ethnic wear brand Biba posted double digit growth compared to the previous year. The jewellery sector also glittered, with Limelight Lab Grown Diamonds reporting one of its most successful festive seasons, achieving a 40% year on year growth.

This positive consumer sentiment resonated across the market. Home solutions retailer Ikea recorded healthy sales for both its premium and mass market items. The e commerce space saw record breaking engagement. Amazon India announced its largest ever festive sale event, which drew an astounding 276 crore customer visits. This powerful market response arrived when October's retail inflation was recorded at 6.2%. The timely tax reductions have evidently played a crucial role in stimulating economic activity and driving festive sales. 

The textile and lifestyle industries have emerged as significant gainers. Major apparel player Raymonds witnessed a strong demand revival for its mid segment products after a relatively slow September. Ethnic wear brand Biba posted double digit growth compared to the previous year. The jewellery sector also glittered, with Limelight Lab Grown Diamonds reporting one of its most successful festive seasons, achieving a 40% year on year growth.