GST Cut Could Boost Festive Advertising budgets

As the festive season draws near, the usual buzz of marketing campaigns and consumer excitement is now mingling with a new kind of anticipation, stirred by discounts alongside a fresh wave of hope from the government’s recent bold GST rate drop. Prices are set to soften across everyday and aspirational categories, from FMCG and apparel to electronics and household goods. Electronics like televisions, refrigerators, and washing machines, which earlier carried a high tax burden, are now within reach of a wider consumer base. FMCG staples and household items have also become lighter on wallets, leaving families with more disposable income. This shift is expected to create a twofold effect, higher consumption in daily-use categories and a readiness among consumers to step up to better versions of products, fueling upgradation.

For advertisers, this presents an opening that goes beyond a tactical response. They now have a golden opportunity to reimagine festive advertising across TV and digital platforms. The GST cut have been sharpest in categories that sit at the heart of mass consumption. This makes television, already the most effective medium for reaching India’s core consumer base, even more attractive. The reduction on electronics, especially TV, moving from 28% to 18% GST will drive higher sales while also expanding viewership. As television sets become bigger and more accessible, audiences multiply, giving advertisers stronger reason to invest in TV ad spots during the season. The same dynamic extends to AVOD and YouTube, where the rise in consumer appetite is bound to create a surge in viewership and engagement. With festive sales projected to grow by 27% and touch Rs 1.2 lakh crore, the environment signals fertile ground for brands to amplify visibility and deepen consumer connection.

Lower GST rates will also ease marketing costs and input tax burdens across advertising industry, freeing up liquidity for brands to expand their media budgets. This additional headroom is likely to encourage bolder spending, experimentation with formats, and sharper campaign timing, all vital for capturing consumer attention in a compressed festive window.

At the same time, this realignment enhances the relative attractiveness of TV as a medium. While digital and OTT platforms have altered the balance of viewership, TV continues to deliver unmatched mass reach, particularly in rural and regional markets. The new cost advantage will help advertisers balance budgets more effectively between online and offline channels, with TV providing deep penetration in markets where consumer confidence is key and digital complementing it with precision targeting. The harmony of multi-channel strategies will define festive campaigns this year.

At Shemaroo Entertainment, we see this development as more than a short-term trigger. The GST policy shift will open wider advertising opportunities and strengthen consumer engagement, bringing substantial benefits to the media and entertainment industry. It is also expected to drive higher consumer spending on entertainment, translating into increased viewership and stronger ad revenues across our diverse portfolio of broadcast and digital platforms.

One aspect that stands out for me personally is the decision to exempt health and life insurance from GST. In a country as large and diverse as India, affordability often decides whether families take up insurance at all. Removing that extra tax burden makes these essential policies far more accessible. Even a modest increase in penetration can bring millions of households under financial protection, offering a safety net against health shocks and future uncertainties. This step strengthens individual security while reinforcing the overall resilience of society at large.

If implemented swiftly, these measures have the potential to reshape this festive season. More importantly, they can create lasting benefits for the broader economy, businesses, and consumers, setting the stage for a cycle of growth.