The recent announcement of GST 2.0 has sparked an upward trend across various sectors, leading to a notable increase in product purchases and inquiries.
From the automotive industry to the jewellery market, a positive consumer response has been observed. Market leaders note that the festive season has already begun to drive foot traffic, a trend they expect to continue until the end of Diwali. This surge in consumer interest is a welcome change, providing a significant boost to a retail sector that has been looking for a strong signal of economic recovery and consumer confidence.
The jewellery industry, in particular, is optimistic about the coming weeks. According to GJC Chairman Rajesh Rokde, “As we approach Diwali demand is expected to rise significantly for light weight and investment related jewellery. The festive season coupled with anticipated surge in weddings, which will further boost consumption.
This year we are projecting a growth of about 12-15% from gold sales which will reflect both traditional buying and evolving consumer preferences.”
This forecast highlights a dual trend: the continued importance of traditional festive buying and an increasing interest in gold as a modern investment asset. Jewellers are making specific preparations to meet this demand, ensuring they have a wide range of products from intricate traditional designs to contemporary, lightweight pieces. The projected growth in gold sales is a strong indicator of a resilient consumer base with a renewed willingness to spend.
The automotive sector is also experiencing a surge in demand for both two-wheelers and four-wheelers. In Mumbai alone, more than 10,400 vehicles were registered between September 22 and October 2, a period coinciding with the festival window. Dealers have made extensive arrangements to manage the increased customer flow, including implementing crowd management strategies, streamlining the delivery process, and setting up separate delivery windows to ensure a smoother experience for buyers.
The increase in demand for personal vehicles, especially two-wheelers, is linked to a growing preference for convenient and independent commuting over public transport. This shift in consumer behaviour not only benefits the automotive industry but also reflects a broader trend towards personal mobility and convenience in urban areas.
The combined effect of the new GST reforms and the traditional festive demand has created a perfect storm for the retail industry. The simplified tax structure has made products more affordable, encouraging consumers to open their wallets.
Simultaneously, the cultural and social significance of the festive season is driving a natural increase in consumption. This synergy is a powerful catalyst for economic activity, fostering a sense of optimism among retailers and manufacturers. The positive feedback loop of increased demand and confident business investment is a key indicator of a strong and healthy market.
