India's GST Cuts Boost Consumer Borrowing, Fuel Economic Growth

The Goods and Services Tax (GST) cuts led to an increase in people taking on more loans to make purchases, with data from credit bureau firm TransUnion CIBIL showing that demand for consumer durable loans was significantly higher between Dussehra and Diwali compared to the same period last year. Splitting the last few months of 2025 into three periods – the 19 days after the GST cuts were announced and before they were implemented on September 22, the 10-day pre-festive period after their rollout and before Dussehra, and the 20 days between Dussehra and Diwali – the credit bureau found that demand for consumer durable loans was incrementally higher by around one-and-a-half times in the festival window compared to a year ago. This, TransUnion CIBIL said on Monday, was indicative of “renewed consumer confidence” “GST 2.0 was a much-needed step to stimulate economic growth, and its positive impact is evident in the improvement of consumer sentiment and the upward trend in credit demand. While fostering and sustaining this credit demand is crucial, it is equally important to promote responsible borrowing practices,” Bhavesh Jain, Managing Director and Chief Executive Officer of TransUnion CIBIL, said.