Value shopping drives Indian festive retail, RAI reports 11% growth

Retailers Association of India (RAI) has reported an 11 per cent growth under the GST Bachat Mahotsav framework, with consumption rising during the 87-day festive period from August 01, 2025, to October 26, 2025, compared with August 09, 2024, to November 03, 2024.

Consumers responded more actively to value-driven categories that fell under lower GST slabs. Apparel and footwear priced below ₹2,500 (~$27.50), both taxed at 12 per cent, recorded stronger traction, while premium apparel above ₹2,500, which moved from 12 per cent to 18 per cent GST, saw moderated demand, RAI’s 66th Retail Business Survey showed.

Category-wise, apparel grew by 9 per cent, sports goods by 11 per cent, and footwear registered a 12 per cent rise. Regionally, West India led with 13 per cent growth, followed by North and East at 10 per cent each, while South India recorded 9 per cent growth, indicating broad-based consumption recovery.

“Retail began the year with 4–5 per cent growth and moved to 7–8 per cent through April–July. The GST Bachat Mahotsav helped lift festive-period sales into double-digit territory. Value-led categories, including apparel under ₹2,500 and footwear in the 12 per cent GST slab, saw steady growth. However, apparel priced above ₹2,500, which moved from 12 per cent to 18 per cent GST, showed comparatively lower traction,” said Kumar Rajagopalan, CEO, Retailers Association of India.

“This suggests that while consumers remained active, they were selective in discretionary spending at higher price points. The industry will now monitor how this consumer preference evolves through the wedding and end-of-season period,” Rajagopalan added.

The survey further highlights that the GST Bachat Mahotsav has sharpened consumer price awareness, helping retailers better understand buying thresholds — and plan inventory, pricing and engagement strategies accordingly.

ALCHEMPro News Desk (HU)