From Shelves to Streets: Lower GST Spices Up FMCG Demand

GST reforms and FMCG outlook  
The government’s decision to reduce GST on packaged food products from 12 percent to 5 percent is being seen as a major consumption booster. According to Marico CEO Saugata Gupta, the cuts will particularly benefit urban households where packaged food demand is rising. He noted that affordability gains will support growth across categories, including value-added hair oils and food products, while helping stabilize margins despite input cost pressures.  

Industry experts believe the GST rationalisation will reshape FMCG demand, with companies like Marico, HUL and Emami expected to benefit. The move comes ahead of the festival season, when consumption typically peaks, and is likely to accelerate recovery in discretionary spending.  

Major takeaways  

• GST on packaged food reduced from 12 percent to 5 percent  
• Marico CEO says affordability will drive urban demand growth  
• FMCG firms expect stronger margins and wider consumption reach  
• Cuts expected to boost festival season sales and long-term demand revival  
• Industry analysts highlight positive impact on HUL, Emami and Marico  

Sources: CNBC TV18, Financial Express, Business Standard, The Week