(MENAFN) India experienced a notable rise in consumer expenditure during Diwali, the country’s largest festival, following recent reductions in consumption taxes, a media outlet reported on Monday, referencing data from retail analytics platform Bizom.

From September 22 to October 21, consumer spending grew by 8.5% compared to the same timeframe last year.

According to the report, total retail sales reached $67.6 billion, with jewelry, electronics, clothing, home furnishings, and sweets emerging as the top-performing segments.

The significant increase in demand is linked to the tax reforms announced by the Indian government in September, aimed at protecting the economy from the 50% tariffs imposed by US President Donald Trump.

New Delhi lowered the Goods and Services Tax on nearly 400 product categories, marking the first substantial tax reduction in almost ten years.

Taxes were cut on most household items, which encouraged consumers to spend more ahead of the festival season.

The immediate impact of the tax cuts was evident in vehicle sales, with leading automakers such as Maruti Suzuki, Tata Motors, and Mahindra & Mahindra reporting strong growth.

Tata Motors delivered over 100,000 cars, while M&M saw a 27% rise in tractor sales, boosted by a favorable monsoon and the tax cuts, the media outlet added.

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