Festive season ahead, markets expect rise in demand and sales 

September 14, 2025

Abhishek Vij

The festive season is starting in the country. Navratri, Dussehra, Diwali, Christmas, and then the New Year. This season is often referred to as the golden period for businessmen. They want to earn for the whole year in these days. These days, India, which has come first in the world in terms of population, is a festival-loving country. In India, the expectations of businessmen and markets are usually fulfilled in this festive season, and Diwali really shines in their accounts.

This time, when countries around the world are suffering from sluggish economic growth, India is still proud that its growth rate is the highest. Ignoring any kind of recession in the coming days, the business class is imagining good days for itself. Here, just before the start of this festive season, US President Donald Trump imposed high tariff rates on Indian exporters.

This means that if the goods exported from India have to recover their cost, then these products will have to be sold at high prices in America. If this is not done, the product has to be sold in the country’s markets only. In such a situation, the prices of this product may come down due to more supply. Thus, the Indian traders who were hoping to sell their goods in the Indian markets at high prices and low cost these days may be wrong.

Despite this, to ensure that the hopes of the business class are not dashed, the government reduced the GST rates of more than 400 items in the 56th meeting of the GST Council on 3 September, which will come into effect from 22 September. Now the highest tax slab of the previous time will be reduced from 28 percent to 18 percent. Even everyday items like oil, shampoo, etc., costing up to Rs 2500 will have only a 5 percent tax slab. The tax rate has also come down in the car and automobile sector, so the auto companies have become enthusiastic due to their advance booking. It is expected that the demand for air conditioners will also increase by 15 to 20 percent. Sales of large-sized TVs can also increase by 15 percent. Nowadays, more than 10 thousand cars are being booked every day for the period after 22 September. At that time, the festive season will be at its peak.

In return for the sluggishness in the markets at present, this magic wand of reducing GST can become a message of more sales and more demand for the products. It can be expected that now to rationalize the sales rates, the business class will start working with proper bills instead of raw ones. The business world, which is facing low sales and low demand, will now find itself in a better position. It is simple that the demand for the goods on which GST will be reduced from 28 percent to 18 percent will definitely increase.

An increase in demand means more production. When new investments are made for production, or machines start working at full speed, then definitely an environment will be created in the country that you can call one with expectations of more sales and more profits. In such an environment, the stock markets that crashed after the imposition of American tariffs will start making a comeback. The prices of packaged food products, which are the choice of the new generation, will also come down. Thus, the change in tax rates of all kinds of products can be said to be beneficial for the festive season.