Festive spending lifts India’s high-frequency demand data despite external tariff headwinds

High-frequency indicators from the recent festive season show robust discretionary demand across automobiles, appliances and consumer goods, according to a report by SBI Mutual Fund. The report noted that despite lingering external headwinds and tariff pressures, retail traction in Tier-1 and Tier-2 markets improved significantly. While exports remain under pressure and input-cost inflation persists, domestic sales strength offers a cushion for FY26 growth projections. 

The mutual fund house expects the momentum to support consumption and investment indicators over the coming quarters, provided global trade disruptions remain contained.