GST 2.0: THE SPARK BEHIND INDIA'S FESTIVE BOOM?

India's 2025 festive season posted record sales, explosive e-commerce volumes, and 50 lakh new jobs, largely driven by GST 2.0 reforms and tech-led logistics

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As Diwali lights glitter across the nation, India's economic engine glows brighter than ever.

The country’s 2025 festive season has emerged as a powerful reflection of post-pandemic recovery, consumer optimism, and policy-led transformation. The confluence of GST 2.0 reforms, rising digital adoption, and evolving logistics capabilities has not only lifted consumption but also created millions of seasonal jobs — signalling that India’s economic story is shifting gears once again.

Speaking at the inauguration of the new CGST Bhawan in Ghaziabad recently, Union Finance Minister Nirmala Sitharaman painted an upbeat picture of India’s economic vibrancy.

“India’s festive retail sales hit an all-time high of Rs 6.05 lakh crore this year. This is a 25 per cent increase over last year's Diwali sales of around Rs 4.25 lakh crore. Of this, about Rs 5.40 lakh crore was spent on goods and Rs 65,000 crore on services — making it the biggest Diwali business in India’s trading history,” she said.

More importantly, Sitharaman noted that this boom wasn't just about consumer spending — it had a direct socio-economic impact, generating an estimated 50 lakh temporary jobs across supply chain, retail, logistics, delivery, and transportation sectors during the festive season.

“This shows that the sentiment is not just dependent on rate cuts, but also on how life has become easy with the GST," she added, crediting GST 2.0 reforms for simplifying compliance, increasing transparency, and strengthening business confidence across sectors.

FESTIVE DEMAND AT AN ALL-TIME HIGH