India’s Consumer Sentiment Rises In October On Festive Cheer, GST Reforms | Business News

GST 2.0 became effective from September 22.

India’s consumer sentiment saw an uptick of +1.4 percentage points in October 2025, driven by the onset of the festive season and recently introduced GST reforms aimed at easing the indirect tax burden.

The festive season, coupled with government-led GST reforms designed to reduce the cost of living, seem to have enabled more household savings and increased capacity for discretionary spending. These factors have collectively led to a positive movement in India’s National Index score, reflecting broader optimism around jobs, personal finances, investments and the economy.

Regionally, sentiment was largely positive across the Asia-Pacific. Indonesia saw the highest gain, with a rise of 6.5 percentage points. Thailand followed with an increase of 3.6 points, South Korea with 2.6 points, Malaysia with 2.1 points, and India with 1.4 points. In contrast, Australia and Japan experienced declines in consumer sentiment, falling by 2.1 and 2.0 percentage points, respectively.

In Latin America, the picture was mixed. Argentina showed the largest drop in sentiment globally, with a decline of 3.5 percentage points, followed by Colombia at -3.1 points. Brazil, however, registered a significant increase of 2.2 points.

The Global Consumer Confidence Index, which is calculated as the average of all surveyed countries’ national indices, reflects the overall level of consumer confidence worldwide. The findings are based on the LSEG-Ipsos Primary Consumer Sentiment Index (PCSI), a monthly survey conducted via Ipsos’ Global Advisor online platform. The October 2025 wave was fielded between September 19 and October 3, 2025, and included responses from more than 21,000 adults under the age of 75 across 30 countries.

Consumer sentiment in 30 countries

Among the 30 countries surveyed, Indonesia holds the highest National Index score at 58.8, reflecting a strong monthly gain of +6.5 percentage points in consumer sentiment. India ranks second with a National Index score of 58.4, marking an increase of +1.4 points over the previous month.

For the third consecutive month, no country has reached or surpassed the 60-point mark, highlighting a general moderation in global consumer sentiment.

A total of eleven countries reported a National Index score at or above 50, indicating relatively strong consumer confidence. These include: India (58.4), Malaysia (56.2), Sweden (54.9), Brazil (53.9), Mexico (53.5), Thailand (53.4), the United States (52.9), the Netherlands (52.7), Singapore (52.6), Australia (51.8), and Poland (50.4).

In contrast, three countries recorded National Index scores below 40, signaling weaker consumer sentiment: Hungary (37.3), Japan (35.2), and Türkiye (34.9).

Consumer outlook in India strengthened across all four sub-indices in October 2025. The PCSI Economic Expectations (“Expectations”) Sub-Index edged up by +0.2 percentage points, reflecting a steady improvement in perceptions of the country’s economic outlook. The Current Personal Financial Conditions (“Current Conditions”) Sub-Index recorded a stronger gain of +2.4 points, suggesting that households are feeling more confident about their present financial situation. The PCSI Investment Climate (“Investment”) Sub-Index rose by +1.2 points, indicating growing optimism around savings and investment intentions. Meanwhile, the PCSI Employment (“Jobs”) Sub-Index advanced by +2.2 points, underscoring rising confidence in the job market and employment prospects.

Elucidating the findings of the LSEG-Ipsos Primary Consumer Sentiment Index—a monthly tracker that measures consumer confidence across 30 countries, including India—Suresh Ramalingam, CEO, Ipsos India, said: “From late September through October, India has been in a celebratory mood, with a host of festivals, creating a feel-good atmosphere across the country. The festive season seems to have spurred consumer spending, reflecting the spirit of celebration. The festive fervour, combined with the government’s recent GST reforms aimed at reducing the cost of living and enhancing household savings, appears to have provided a further boost to consumer sentiment. Despite challenging global macroeconomic conditions, Indian consumers have remained upbeat, fully immersed in festive shopping and celebrations.”

“Many companies distribute Diwali bonuses, and the accompanying holidays further creates an upbeat mood driving positive sentiment. This, in turn, is reflected in the uptick in consumer sentiment related to personal finances, investments, and savings,” noted Suresh Ramalingam, CEO, Ipsos India.

He added, “Hiring momentum remains strong across sectors such as e-commerce, logistics, retail, automotive, and EV infrastructure. Notably, Tier 2 cities are emerging as vibrant employment hubs, with a visible surge in hiring activity, as highlighted by recent industry reports.”