Independence Day promotions, discounts boost retail sector in India
18 August 2025, Mumbai
Independence Day promotions and discounts in India have given a significant boost to the retail sector. Retail sales and footfalls at key shopping destinations increased by 8-10 per cent Y-o-Y during the period.
Some retailers like Reliance Retail, reported double-digit sales growth. Malls experienced a surge in traffic, partly due to the long weekend and new movie releases. One group operating malls in Delhi and Punjab reported that moviegoers alone contribute at least 10 per cent of revenue for fashion and F&B brands.
E-commerce platforms also saw strong results, with one report from Unicommerce stating a 14 per cent growth in order volumes during the I-Day sale period.
The revival was most prominent in the entry-to-mid-segment products, indicating a return of discretionary spending among low-to-middle-income households.
International brands also benefited from the discounts, attracting customers with lower price points. E-commerce growth was particularly strong in Tier-II, III ities, which showed a significant jump in order volumes, highlighting the growing purchasing power in these regions.
Retail executives are optimistic that this Independence Day momentum will carry through to the upcoming festive season. They believe this positive trend signals a turnaround after a period of pressure on retailers, who had been grappling with low-to-middle-income households facing high inflation and weak earnings.
Factors contributing to this optimistic outlook include lower inflation, soft loan rates, income-tax rationalization, and a good monsoon, all of which are expected to support consumer spending.
The government's announcement about rationalizing GST rates by Diwali is also seen as a move that will boost consumption and affordability.
