Quick Summary
Sales of daily household necessities and grocery items recorded a strong rebound during the October-December quarter, signalling a revival in consumer demand after the GST rate was reduced on several essential products from September 22. Industry data from the first full quarter following the GST rationalisation indicates that the government's objective of reviving consumption-after multiple quarters of inflation-led slowdown, has largely been achieved. According to executives citing NielsenIQ
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FAQ :
The GST rate cut on daily essentials led to a strong rebound in sales, with FMCG volumes growing by 9-10% in the December quarter, up from 7.1% in the same period last year.
Categories such as soaps, detergents, snacks, and noodles experienced increased sales volumes following the GST rate reduction.
The post-GST reform quarter showed a narrowing of the urban-rural demand gap, indicating improved growth across both areas.
Tax rates on daily essentials like soaps, shampoos, and toothpaste were reduced to 5% from previous slabs of 12% and 18%.
Industry leaders remain optimistic, expecting continued momentum and volume-led growth in the second half of FY26, supported by stable GDP growth and recent tax relief measures.
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