The recent GST adjustment, often referred to as ‘GST 2.0’, has significantly boosted interest among smart television shoppers on Amazon. The e-commerce platform experienced impressive double-digit year-over-year (YoY) growth during the first 48 hours of its Great Indian Festival 2025. This surge was particularly pronounced in Tier 2 and Tier 3 cities, which saw remarkable YoY increases of 25% and 30% respectively, according to Zeba Khan, Director of Consumer Electronics at Amazon India.
Zeba highlighted that premium television categories, such as QLED and mini-LED models, along with larger screens exceeding 55 inches, are the primary drivers behind this growth. Specifically, 55-inch and 75-inch TVs are currently Amazon’s fastest-growing segments.
She further noted that from a technological perspective, QLED and mini-LED TVs, which incorporate the newest display innovations, are attracting the most attention from consumers. This renewed interest coincides with the 56th GST Council meeting’s decision to reduce GST on smart televisions larger than 32 inches, dropping the rate from 28% to 18%.
According to Zeba, the Great Indian Festival 2025 launched with aggressive pricing, making 55-inch televisions available at price points typically associated with 43-inch models, and 75-inch TVs priced similarly to what 55-inch TVs previously cost.
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Amazon previously announced a staggering 380 million customer visits within the first two days of the festival. Zeba confirmed that the consumer electronics sector, in particular, is experiencing robust, double-digit growth.
She elaborated that this expansive growth isn’t limited to one area; it’s evident across various categories including smartphones, major appliances, televisions, personal computers (especially premium models), and home audio systems. A substantial part of this momentum originates from Tier 2 and Tier 3 cities, where consumers are increasingly seeking premium products, leading to significantly faster expansion in these regions.
Current trends show that premium sub-segments within consumer electronics, like advanced AI-powered computing devices, expansive entertainment screens, and intelligent home appliances, are outperforming the already impressive overall double-digit growth rates.
Despite smartphones not receiving any direct benefit from the revised GST rates, Amazon is offering them at their most competitive prices ever, Zeba stated. She explained, “This year, our primary focus is on delivering the lowest smartphone prices of the year, which naturally draws a large customer base to explore our deals. Although mobile phones haven’t seen GST reductions, price drops in other essential goods and categories have freed up more disposable income for consumers, empowering them to invest in high-end electronics.”
Zeba further revealed that the entire smartphone category is experiencing double-digit year-over-year growth. The premium segment (devices priced at ₹20,000 and above) is particularly booming, showing a 50% value growth and a 30% increase in average selling price (ASP), making it the fastest-growing segment on Amazon. This trend is mirrored in Tier 2 and other emerging markets, which also report a 50% value growth in premium smartphones.
Leading brands like Apple, Samsung, OnePlus, and iQOO are spearheading the premiumization trend in the smartphone sector, largely fueled by 5G technology. The Samsung Galaxy S24 Ultra 5G, for instance, has seen a remarkable fourfold increase in sales. Apple iPhones have also achieved robust double-digit growth, significantly contributing to the category’s expansion. These purchasing patterns are consistent nationwide.
Zeba pointed out a considerable rise in demand for AI-powered devices. Currently, one out of every five Windows laptops sold is an AI-enabled PC. Premium tablets featuring AI capabilities are also highly sought after. She cited impressive growth figures: the iPad Air M3 experienced a 300x surge, the Samsung Galaxy Tab S9 saw a 430x surge, and the MacBook Air M4 achieved a 150x surge in sales.
Amazon’s AI-powered Rufus assistant, integrated within the app, has already engaged with over 10 million customers. Rufus helps users by providing product details, offering concise summaries, facilitating product comparisons, and answering various queries. This demonstrates a notable increase in customer interactions driven by artificial intelligence.
Regarding affordability, Zeba emphasized that Amazon is committed to offering not just the lowest smartphone prices of the year, but also robust financing solutions to maximize customer value. She mentioned that no-cost EMI options have achieved over 30% penetration for premium products. Additionally, a 10% cashback offer with bank partners remains available throughout the Great Indian Festival. Prime members benefit further from a co-branded ICICI credit card, which provides a consistent 5% cashback.
Amazon’s Great Indian Festival is scheduled to run until Diwali. Zeba expressed confidence in maintaining strong momentum, driven by several upcoming topical events and regional festivals like Durga Puja, Dussehra, and Diwali, which are expected to sustain high levels of customer excitement. Historically, the festival experiences a significant surge in sales during its concluding days, reinforcing Amazon’s positive outlook for its successful completion.