Consumer spending expected to touch US$ 157.8 billion this festive season: Report
- IBEF
- October 7, 2025
Consumer spending during this festive season in India is projected to range between Rs. 12,00,000 crore (US$ 135.26 billion) and Rs. 14,00,000 crore (US$ 157.8 billion), driven largely by recent Goods and Services Tax (GST) rate cuts, according to a report by the Bank of Baroda. The analysis highlights that major expenditure will be concentrated in wedding-related expenses, clothing, automobiles, and electronics, while daily consumption items such as food and fast-moving consumer goods (FMCG) were excluded. With approximately one crore marriages occurring annually in India, nearly 60% of which take place between October and December, the marriage segment alone is expected to account for Rs. 4,50,000 crore (US$ 50.72 billion) to Rs. 5,00,000 crore (US$ 56.36 billion) in spending.
The report emphasised that India remains on track to be the fastest-growing major economy globally, supported by a strong domestic consumption base that provides resilience against external challenges, including tariff-related uncertainties. The festive and marriage season, coinciding with the GST rate rationalisation, is expected to further stimulate demand in clothing, automobiles, electronics, FMCG, and quick service restaurants. Additionally, travel sectors, including aviation and railways, are likely to witness increased activity due to heightened consumer mobility. These spending trends are anticipated to boost urban consumption, strengthen private sector investment, and contribute positively to overall economic growth in the near term.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
