Policy push sets stage for FMCG growth as retail demand picks up

FAST-MOVING CONSUMER goods (FMCG) companies hope to take the flight to growth next year riding on the fuel provided to the sector this year by big policy measures.

- VIVEAT SUSAN PINTO

The current year will go down as a unique year for consumer-facing businesses when income tax cuts, monetary policy easing and GST 2.0 reforms came one after the other in moves aimed at supporting growth.

Adding to this, the momentum provided by sustained rural growth and lower commodity inflation and as Dabur India CEO Mohit Malhotra says the "puzzle pieces have come together" for FMCG. In contrast, consumer durables, fashion and lifestyle categories saw an immediate response to the policy stimulus provided by the government and central bank as discretionary spending took off after a slowdown. The question is: Will this last long enough?

"I think everything is in place for the FMCG sector to take off," Malhotra said. “Unlike durables and cars, which took off the moment the GST 2.0 reforms were introduced in September, FMCG is a long-term bet. There were hiccups in 2025, but growth will show up in 2026," he said.