New Delhi, Aug. 20 -- Last year, India's consumer durables industry entered the festive season with a tailwind: lower prices after a cut in goods and services tax (GST) rates. This year, retailers are betting that discounts, easy financing and premium products can keep shoppers spending even as smartphones and other consumer goods become significantly more expensive.

"We expect around 8-10% growth in the season from last year," said Nilesh Gupta, director and managing partner at Vijay Sales, adding that the Independence Day sale had provided a strong start.

Retailers are also seeing consumers trade up rather than retreat from spending altogether.

"Despite selective price increases, consumer intent remains strong across lifestyle, enter...