India’s consumption story is picking up pace, with both auto sales and demand or volumes for daily use consumer goods showing clear signs of recovery after months of muted growth following the goods and services tax (GST) rationalisation at September-end. Some companies are even seeing the rural-urban demand gap narrowing to half of last year’s level, reflecting a secular revival trend.

The pickup indicates India’s demand across categories may be turning a corner, helped by policy easing, improved rural liquidity, wedding season purchases and greater freight activity, marking a gradual return of demand across both essential and discretionary categories.

Vehicle registrations, a proxy for demand, expanded 17.6% to 2.72 million units last month from a year ago. After a slow start due to initial trade disruption amid GST rate cuts, fast moving consumer goods (FMCG) makers said they have started to see revival in volumes after products with lower price-tags reached retail shelves in December.

Spring in the Step

Months of muted growth now giving way to revival.

Rural–urban demand gap narrowing.

Policy easing, rural liquidity, wedding season, freight activity, lowerpriced goods.