Mumbai, Aug. 27 -- Indians have paused big purchases in the hope that prices will drop after the goods and services tax slabs are merged. Still, consumer goods makers, electronics manufacturers and retailers press ahead with their preparations for a festive surge in demand.

Brands have ramped up promotional activity, are expanding reach, lining up deeper discounts and focusing on premium products in anticipation that discretionary consumption will surge during the period considered auspicious for buying smartphones and kitchen appliances to chocolates. Companies are betting that an early decision on merging GST slabs will further propel demand.

"The industry is hopeful that the new tax rates will be announced by September, which could t...