Synopsis
GST cuts on textiles and footwear may offer some relief. Market expert Sunil Subramaniam anticipates a demand surge in big-ticket items. The upcoming festive season is likely to drive purchases of cars and appliances. Real estate faces short-term challenges. Affordable housing could revive in the next 6–12 months. GST cuts and lower EMIs will make real estate an attractive investment.
ETMarkets.com The recent GST cuts on textiles and footwear priced below Rs 2,500 are expected to provide some relief to consumers, but the real demand surge may come from big-ticket categories such as durables, autos, and real estate, according to market expert Sunil Subramaniam.
Speaking to ET Now, Subramaniam said that while the GST cut will encourage some immediate purchases in low-cost segments like footwear and textiles, the absolute savings in rupee terms are limited. “At the lower end, people may advance their replacement cycles slightly, but the bigger impact will be seen in EMI-based purchases such as consumer durables, automobiles, and even real estate,” he explained.
Festival season to drive big-ticket buys With the festive season approaching, Subramaniam expects demand to rise in discretionary and durable categories where EMIs influence consumer decisions. “Festivals are associated with big purchases—cars, refrigerators, air conditioners. Savings from GST cuts on low-end products will likely be redeployed towards higher-value EMI-based products,” he said.
He noted that categories like air conditioners, large TVs, and high-end consumer durables, which have seen GST reductions from 28% to 18% or even 12% to 5% in some cases, will benefit the most.
Real estate outlook: Short-term weakness, Long-term opportunity On the real estate sector, Subramaniam maintained a contrarian view, highlighting that the current slowdown is seasonal and structural. “Monsoons reduce construction activity, which naturally dampens demand in this period. Moreover, affordable housing has lagged, while premium housing has seen more traction,” he said.
Builders, he pointed out, have shifted focus towards high-end properties in recent years, leavi
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