The festive season of 2025 has opened with an unprecedented surge in demand for large appliances in India, reflecting the impact of the GST rate cut and aggressive festive promotions. The GST Council's decision to reduce tax on air conditioners and large-screen televisions from 28% to 18% has provided the spark retailers and manufacturers were looking for. Early indicators from e-commerce platforms and appliance makers suggest that customers are advancing their purchase plans and increasingly opting for bigger, more premium products. The result is record-breaking numbers across large appliance categories.
Amazon India's Great Indian Festival 2025 has become the most successful edition yet. The event drew over 38 crore customer visits in the first 48 hours, making it the platform's biggest opening. More than 70 percent of shoppers came from beyond the top nine metros, underlining the growing importance of smaller towns and cities in driving demand. Sellers passed on GST benefits worth crores through the #GSTBachatUtsav storefront, which featured over 1 lakh products at lowest-ever prices and more than 30,000 new launches across categories. In just two days, over 16,000 small and medium businesses tripled their sales, while more than 80 lakh products were delivered to Prime members.
"The Amazon Great Indian Festival 2025 is seeing a record-breaking start. The first 48 hours have been our biggest ever, with an unprecedented 38 crore customer visits and the highest number of Prime members shopping during Prime Early Access," said Saurabh Srivastava, Vice President, Amazon India. "The #GSTBachatUtsav initiative has been incredibly well-received, with sellers passing on GST benefits worth crores in just 48 hours through our dedicated storefront featuring home appliances, electronics, daily essentials, healthcare, fashion, and more."
TV and AC shine
Large-screen televisions and cooling appliances have been the biggest beneficiaries of the GST reduction. On Amazon, premium TVs showed strong double-digit growth, with QLED models rising 23 percent year-on-year and Mini-LED TVs increasing by 27 percent. Sales of side-by-side refrigerators, advanced washing machines, and energy-efficient split air conditioners also saw strong momentum.
Ravi Agarwal, Co-Founder and Managing Director of Cellecor, said the reduction has "created a positive market sentiment, driving a noticeable increase in inquiries, with customers keen to upgrade to larger screens such as 55 inches now that price points are more accessible." He expects growth of 30 percent this festive season compared to last year, led by financing schemes and rising demand from Tier 2 and Tier 3 cities.
Pankaj Rana, CEO of Hisense India, noted that prices have effectively dropped by ₹3,000 to ₹25,000 depending on model and size. "This price-sensitive category is seeing consumers opting for bigger screens and advancing their purchase plans," he said, forecasting nearly 50 percent growth over last year. Demand for 4K, QLED, and AI-enabled TVs is strong in metros, while Tier 2 and Tier 3 cities are fueling high-volume sales.
Mr. NS Satish, President of Haier India, said the reduction has "sparked a renewed wave of consumer enthusiasm," with growth of 30 to 35 percent expected in appliances during the festive season. He highlighted a strong upgrade intent across markets, especially for smarter and energy-efficient appliances.
Tier 2 and 3 cities emerge as growth drivers
Beyond metros, the surge in appliance sales is being powered by Tier 2 and 3 markets. More than two-thirds of Amazon's sellers came from these regions, including cities such as Ajmer, Rajkot, and Udupi. Shoppers in these areas helped push double-digit growth in categories like air conditioners and dishwashers. Consumers also showed stronger interest in premium appliances, including inverter-based products and eco-friendly kitchen units, which recorded 50 percent higher year-on-year sales.
Tefal, part of Groupe Seb, said the reforms are a step toward a more efficient and consumer-friendly GST regime. "The GST Council, in its recent deliberations, has proposed a series of forward-looking changes aimed at rate rationalization, export liberalization, a more effective dispute resolution mechanism, working capital relief for businesses, and improvements in both ease of living and ease of doing business," the company noted. Highlighting that the festive quarter contributes more than 35 percent of its annual sales, Tefal said it is backing the demand wave with new launches, digital activations, and targeted trade programs.
Broader Market Impact
The GST cut and festive promotions are being seen as a reset for India's large appliance sector. Earlier in the year, a mild summer and extended monsoon had kept sales subdued. Now, with the dual push of reduced taxation and attractive offers, categories once considered aspirational are gaining traction. Products such as 98-inch televisions, side-by-side refrigerators, and AI-driven washing machines are now finding customers in smaller towns.
Affordability is also playing a major role. Customers saved more than ₹260 crore using SBI debit and credit cards during the initial days of the Amazon sale. One in five purchases was made using EMI, with 80 percent of them under no-cost EMI options, particularly in mobiles, appliances, and electronics. This affordability layer, coupled with wider availability, is enabling deeper penetration in Bharat and supporting premiumization.
Industry consensus is that the GST cut has not only lowered entry barriers but has also accelerated a broader upgrade cycle. With strong participation from metros and smaller cities alike, and with festive momentum expected to continue through Diwali, the sector is on track for one of its best seasons in recent years.
