India’s fast-moving consumer goods (FMCG) demand environment is showing signs of improvement, driven by post-Goods and Services Tax (GST) price resets, stronger discretionary spending and early signs of premiumisation. Manoj Menon, Head of Research and Consumer Analyst at ICICI Securities, said ground checks across listed and unlisted players indicate a visible shift in consumer behaviour and renewed optimism heading into the fiscal year 2026-27 (FY27).

Menon said the first trend is a clear pickup in discretionary categories. “The demand uptick is visible,” he said, noting that many companies are seeing stronger volumes after price reductions. Using an example, he said a shampoo priced earlier at ₹500 now costs around ₹440 after discounts, and “the volume uptick seems to be fairly materia

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