Festive Boost Fails: Consumption Goods Output Muted Despite GST Cuts

• Festive season (Sept-Nov) and GST cuts had limited impact on consumption goods output.
• Consumer non-durables output hit a three-year low, growing only 0.6% during festive months.
• Consumer durables production fell to a two-year low, averaging 4.7% growth in FY26.
• Economists note weaker IIP momentum (3.6% in Oct-Nov FY26 vs 4.3% in Q2 FY26).
• Outlook remains cautiously optimistic due to lower interest rates, tax relief, and agricultural output.

Why It Matters: Festive spending and GST cuts failed to significantly boost consumption goods production, reflecting cautious consumer sentiment.