Archive · 1 Jan 2026
India's FMCG and Auto Sectors Expect 2026 Growth
India's FMCG and automotive sectors are expecting better growth in 2026.
The FMCG sector is looking forward to growth because of new tax rules called GST 2.0 and low inflation.
Low inflation means companies can pass on some price benefits to shoppers, which will help with demand.
A person named K. Ramakrishnan, who works at a company that tracks household consumption, said these things will help the sector grow.
On the other hand, Mahindra & Mahindra, a big automotive company, expects growth from GST-led demand, new electric vehicle launches, and refreshing their products.
They are also planning to increase their EV capacity and are seeing more people needing to replace their commercial vehicles.
However, they are reviewing their prices because the cost of raw materials has gone up.
India's FMCG sector expects growth in 2026 due to GST 2.0 and low inflation.
Mahindra & Mahindra anticipates growth from GST-led demand, EV launches, and product refreshes.
Low inflation allows FMCG manufacturers to pass on price benefits to shoppers.
Muted growth in 2025 sets a lower base for better growth in 2026 for the FMCG sector.
Mahindra & Mahindra plans to ramp up EV capacity and sees a replacement cycle in commercial vehicles.
- Who
- India's FMCG and Automotive Sectors
- What
- Expected growth in 2026 due to GST-related factors and economic conditions
- When
- 2026
- Where
- India
- Why
- GST 2.0 effect, low inflation, EV launches, and product refreshes
FMCG Sector
Automotive Sector
Growth Drivers
FMCG Sector
GST 2.0 and low inflation
Automotive Sector
GST-led demand, EV launches, and product refreshes
Economic Factors
FMCG Sector
Low inflation allows price benefits to be passed on to consumers
Automotive Sector
Reviewing pricing due to higher raw material costs
Sector-Specific Focus
FMCG Sector
Muted growth in 2025 sets a lower base for better growth in 2026
Automotive Sector
Ramping up EV capacity and seeing a replacement cycle in commercial vehicles
- Sector 1
- FMCG
- Sector 2
- Automotive
- Growth Factor 1
- GST 2.0
- Growth Factor 2
- EV Launches
- Economic Condition 1
- Low Inflation
- Economic Condition 2
- Higher Raw Material Costs
- Base Year
- 2025
- Expected Growth Year
- 2026
- Source 1
- Worldpanel by Numerator (formerly Kantar)
- Source 2
- Mahindra & Mahindra
