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Will GST 2.0 add sparkle to Diwali sales? Lucknow bizmen hopeful
Strong Navratri sales and increased footfall in markets ahead of the festival of lights instil confidence among businessmen in the state capital
LUCKNOW With major goods and services tax (GST) reforms effective since September 22, businessmen are highly optimistic for increased footfall and stronger Diwali sales. The new tax structure, which simplifies rates and lowers them on many common products, has already boosted consumer sentiment in the automobile, electronics and precious metals sectors during Navratri, leading to a surge in early festive sales.
Federation of Automobiles Association (FADA) executive member Vinkesh Gulati said the market has recorded good pre-booking numbers ahead of the festival. “Due to GST 2.0, this Navratri has been promising for the auto industry. Compared to last year, sales during the nine-day festival have grown by nearly 20% (four-wheelers and two-wheelers in the city). Last year, 24,232 two-wheelers and 13,816 four-wheelers were sold in Lucknow...we are expecting sales of 30,000 two-wheelers and 16,500 four-wheelers this festive season,” he said.
“There’s huge potential with markets already witnessing increased footfall ahead of the festive season,” said Sanjay Gupta, president, UP Adarsh Vyapar Mandal.
The utensils market business is also expected to soar from ₹80 crore last year to ₹100 crore this year. A boom in this market is expected, especially on Dhanteras,” said Harishchandra Agrawal, president, Lucknow Metal Merchants Association.
Similarly, there were at least 50% more pre-bookings for electronics and electrical appliances than last year. “We are expecting the figures to go up by 20-30% on an average. Lucknow saw a market of over ₹14.5 crore last Diwali, which is expected to swell by at least ₹4-5 crore. Bigger LEDs and other electronics are in high demand as they are fitting the budget of many customers,” said Anirudh Nigam, an electronics businessman associated with UP Adarsh Vyapar Mandal.
The readymade garment market also recorded major changes after the next-gen GST.
“Last year, the city purchased garments worth over ₹650 crore from both organised and unorganised sectors, which we expect to rise up to ₹800 crore this year. People buying clothes under ₹2500 will be benefited with a reduced GST rate while others purchasing over ₹2500 will have to bear increased tax rates,” shared Mohammad Afzal, state treasurer, UP Adarsh Vyapar Mandal.
However, Lucknow Vyapar Mandal president Amarnath Mishra said: “Besides the GST reform, there is a need for the government to equalise the online and offline markets, making it a level playing field for both businessmen.”
The Chowk Sarafa Market has also begun receiving good pre-bookings, especially when prices of precious metals are increasing with each passing day. “From investors to those involved in festive and wedding shopping, all kinds of customers are adding life to the markets. The footfall has made us anticipate a better festive season,” said Adesh Jain, office-bearer, Chowk Sarafa Association.
EXPECTATIONS IN NUMBERS
Segment--------------------------- 2024 --- ------------------- Expected sales (2025)
No. of 2-wheelers sold-----------24232---------------------- 30000
No. of 4-wheelers sold ----------13816 ---------------------- 16500
Utensil sales---------------------- ₹80 cr- ------------ ₹100 cr
Electronics & electricals ------ ₹14.5 cr----------- ₹18 cr
Readymade garments -------- ₹650 cr ------------ ₹800 cr
(Source: Merchants, traders and dealers associations)
