GST Cuts Fail to Deliver the Expected Consumption Boost for Footwear & Apparel Sectors

The government tried to jumpstart spending by slashing GST on shoes and clothes. You’d think cheaper prices would get people shopping again, right? But if you ask folks in the business—store owners, manufacturers—most say it hasn’t made much of a difference. Prices dropped, but shoppers aren’t exactly lining up at malls or filling their carts online.

The plan was simple: make footwear and apparel more affordable, get sales moving, and tempt budget–conscious buyers back. But honestly, recovery’s still stuck in first gear. With inflation biting into paychecks, people are holding back. Priorities have shifted. Brands say foot traffic at stores is flat, and online numbers barely budged.

Market analysts don’t sugarcoat it. The problem runs deeper than just one industry—it’s the whole economy dragging. People are focused on essentials. When money feels tight, shoes and new clothes just don’t seem urgent. Even with lower taxes, most folks aren’t splurging on stuff they don’t need.

And manufacturers? They’re not catching a break either. Costs for everything—raw materials, labor, you name it—are still high. Supply chains keep throwing curveballs. So, brands can’t cut prices as much as they want. Big discounts aren’t really on the table, and that makes it even harder to draw in customers.

So, why are people still holding back?

— Disposable income hasn’t really grown
— Inflation is squeezing family budgets
— More competition from small, unorganized sellers
— Smaller cities are still slow to bounce back
— High costs make price cuts tough

What’s next?

Most industry leaders still believe the GST cuts will help eventually, but nobody’s betting the farm on tax breaks alone. They’re hoping for a stronger economy, more confident shoppers, and maybe some creative promotions to finally get things moving.

With the festive and wedding seasons around the corner, everyone’s hoping for a sales boost. Until then, footwear and apparel brands are staying cautious. Demand isn’t bouncing back just yet, and nobody’s taking big risks.

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