As India approaches Union Budget 2026, the discourse on economic growth is steadily shifting away from headline GDP numbers towards the depth, durability, and inclusiveness of domestic consumption. At the centre of this transition sits the fast-moving consumer goods (FMCG) sector, widely regarded as the most reliable barometer of everyday economic confidence. From food staples and packaged nutrition to personal care and household essentials, FMCG captures how policy decisions translate into lived consumer behaviour across income groups and geographies.
As India advances towards its ambition of becoming a $5 trillion economy by 2029, FMCG occupies a pivotal role in sustaining momentum. Beyond its contribution to output, the sector mirrors household purchasing power, evolving aspirations, and quality of life. Yet, as Budget 2026 approaches, FMCG stands at an inflection point. While topline growth has remained resilient, it has often been supported by price increases rather than genuine volume expansion. The next phase of India’s ‘consumption decade’ will depend on policy