Our Bureau
Mumbai
As the festive season is approaching the country, the festive economy of India is all set to witness one of its most powerful runs in years. The festive economy in 2025 will be getting a boost because of the repo rate cuts, higher disposable income, rising rural affluence, and pent-up demand across various different categories like appliances, fashion, and home goods.
As per the reports by the Redseer Strategy Consultants it is to be noted that this festive season will be benefiting e-commerce the most. The report shows that the sector is expected to grow 20–25% year-on-year, which will be nearly double last year’s pace, and will generate over Rs 1.15 lakh crore in gross merchandise value.
The report also projects that the e-commerce sector of the country will be closing this year with a growth rate of somewhere around 17-22% which will be the strongest it has experienced in the past three years. This brings a new opportunity for companies as they can plan for two hikes in demand with one coming around the upcoming festive seasons and the second coming after Diwali when the government is planning to fully let out the GST benefits.
Redseer reports also claim that these quick commerce and value commerce have completely redefined how consumers shop and thus their pre-festive growth rates have skyrocketed, hitting 150% and 30–35%, respectively. It is expected that these sectors are together going to expand festive participation of consumers outside the metro cities as they are trying to root themselves in tier-2 and tier-3 markets.
It is also to be noted that this year the boost in the economy will also be seen due to the rationalisation of the GST by the government. It is highly likely that the tax slabs are going to be simplified into just two forms of 5% and 18% post Diwali. This move is expected to reduce the price of goods all around and boost compliance.
