Archive · 31 Oct 2025
Digital Transactions Surge Driven by Festival Demand and GST 2.0 Reforms
Imagine it's festival time in India, like Christmas and New Year combined!
People love to buy gifts and treats.
This year, they spent a lot of money using their phones and cards, a total of Rs 18.8 lakh crore!
A big reason for this is a new tax system called GST 2.0, which the government hopes will encourage even more spending.
People also used digital payments like UPI much more than last year, especially for things like clothes and electronics.
It seems like many people bought their festival items a bit earlier this year.
Experts believe this strong spending will continue for a while, thanks to the new tax system and people feeling more confident about the economy.
Digital transactions in India reached Rs 18.8 lakh crore during the Dussehra-Diwali period, driven by festival demand.
The new GST 2.0 framework and favorable macroeconomic conditions are expected to boost private consumption.
UPI transactions saw an 18% year-on-year increase, reaching Rs 17.8 lakh crore during the festival season.
Spending growth was particularly strong in categories like liquor shops, online marketplaces, and apparel.
Bank of Baroda anticipates continued buoyant private consumption through Q2 and Q3 FY26 due to GST stimulus and digital adoption.
- Who
- Consumers in India and Bank of Baroda analysts
- What
- Digital transactions reached Rs 18.8 lakh crore, driven by festival demand and the new GST 2.0 framework, signaling a rebound in consumer spending.
- When
- During the Dussehra-to-Diwali period, with GST 2.0 reforms effective in October 2025.
- Where
- India
- Why
- Strong festival demand, favorable macroeconomic conditions (low inflation, good monsoon), and the stimulus effect of GST 2.0 reforms have boosted consumer spending and digital payment momentum.
- Total Digital Transactions (Dussehra-Diwali)
- Rs 18.8 lakh crore
- UPI Transactions Value (Dussehra-Diwali)
- Rs 17.8 lakh crore
- Debit Card Transactions Value (Dussehra-Diwali)
- Rs 65,395 crore
- Credit Card Transactions Value (Dussehra-Diwali)
- Rs 39,045 crore
- UPI Transaction Growth YoY
- 18%
- Estimated GST 2.0 Impact on Spending
- Rs 20 lakh crore
- Average UPI Transaction Value
- Rs 1,052
