Business · Economy · 3 hrs ago
India's festive shopping demand is uneven as inflation raises costs
India's festive-season shopping demand is growing unevenly ahead of Diwali, with some categories doing better than others.
Food and grocery sales grew 12% year on year in July and August, apparel grew 10% in August, and durables and electronics grew 7% in the latest months measured.
Jewellery sales growth slowed to just over 4% in September, down from more than 8% in August, with retailers pointing to festivals shifting later in the year.
Inflation has pushed companies to raise prices, as costs for plastic packaging and other crude-linked materials have risen amid the West Asia war.
Packaged food and everyday essentials are holding up, while companies are offering premium festive products at entry-level prices to attract buyers.
Higher oil prices and interest rates could further pressure demand, especially for cars and other costly purchases financed with credit.
India's consumer economy is showing uneven demand ahead of Diwali, with inflation and rising input costs weighing on some segments.
Food and grocery grew 12% year on year in July and August, while apparel grew 10% in August and durables and electronics grew 7% during the reported months.
Jewellery sales growth slowed from more than 8% in August to just over 4% in September, with the Retailers Association of India citing a shift in festival timing.
Companies have raised prices over the past few quarters as costs for plastic packaging and other crude-linked inputs rose.
Some everyday essentials and premium packaged products continue to see resilient demand, while higher interest rates could make consumers more cautious about big-ticket purchases.
- Who
- Indian consumers and consumer goods companies, across a range of retail categories.
- What
- Festive shopping demand is uneven, with some categories growing strongly and others showing signs of stress amid inflation and rising costs.
- When
- Ahead of Diwali; the article was published on 2 November 2026.
- Where
- India.
- Why
- Inflation and higher input costs have led companies to raise prices, while the shift in festival timing affected some comparisons. Higher interest rates may also curb purchases that depend on credit.
This story does not have two clearly opposing sides.
Consumer goods companies across categories raised prices as costs rose.
Food and grocery growth was 12% year on year in the latest months with available data.
Apparel growth reached 10%, while jewellery sales growth was more than 8%.
Jewellery sales growth slowed to just over 4%; the Retailers Association of India said festival timing affected the figures.
- Food and grocery growth
- 12% year on year in July and August
- Apparel growth
- 10% in August
- Durables and electronics growth
- 7% during the reported months
- Jewellery sales growth
- More than 8% in August; just over 4% in September
- Brent crude
- Above $110 a barrel
- India's crude oil imports
- Nearly 90% of its requirements
What people are saying
Rising interest rates may dampen festive-season demand for consumer durables by increasing EMI costs and making credit-dependent consumers more cautious
The focus for us is to ensure that we are more competitive and that our brands become stronger in the context of the (inflationary) environment in which we are.
Consumers are increasingly looking beyond conventional choices and exploring new flavours, formats, and combinations to make their gifts more distinctive