Demonetization and GST effect? 49% spent less this Diwali, says survey

About 49% Indians are likely to spend less this Diwali compared to last year due to demonetization and impact of GST, with expenditure on clothes and sweets to be the highest, says a survey.

The survey conducted by news app InShorts and research firm Ipsos said though 21 per cent will be spending more over last year, 18% will spend same as the last year.

Besides, 21% respondents said they were undecided.

"Consumers are still reeling under the impact of demonetisation and GST. The sentiment is not that upbeat this Diwali," Ipsos India CEO Amit Adarkar said.

The survey titled 'Pulse of the Nation Diwali Poll' was conducted online on October 14. Over 39,000 Indians participated in the poll through InShorts mobile application.

While clothes and sweets will see highest spending at 38 per cent, gadgets and gizmos will see 13% spending followed by home renovation and furnishing at 12 per cent and automobiles at 3 per cent, the survey said.

In terms of Diwali break, the survey said 55 per cent of the respondents won't be working while 34 per cent would be working. About 13 per cent said they were not sure.

"Time zones, global client deliverable, essential services these factors take precedence over Diwali holidays," Adarkar said.