India festive season drives surge in e-commerce and intercity travel

India is experiencing a significant surge in consumer activity during the festive season, characterized by increased demand in both travel and e-commerce sectors.

In the travel sector, an analysis of over 600,000 passengers by Fresh Bus indicates that intercity bus demand on high-demand routes has risen by 30 to 50 percent compared to regular weeks. Major corridors, such as those connecting Hyderabad, Vijayawada, Visakhapatnam, and Bengaluru, are seeing concentrated passenger movement as individuals travel to hometowns for festivals like Dussehra and Diwali.

Simultaneously, e-commerce activity has seen a 31 percent year-on-year increase in order volumes during the first week of festive sales. While the average order value declined by 10 percent, gross merchandise value grew by 17 percent. Quick commerce has emerged as the fastest-growing channel with an 85 percent surge in order volumes. High-growth categories include fast-moving consumer goods (FMCG), which saw a 190 percent increase in volume, and beauty and personal care, which grew by over 69 percent.