Mumbai, Oct 6
India’s consumption revival is expected to gain strong momentum in the second half of FY2026, supported by tax cuts, rate reductions, and GST rationalisation, a new report said on Monday.
The data compiled by MP Financial Advisory Services LLP (MPFASL) said that these policy measures, combined with a better monsoon and easing inflation, are creating a favourable environment for household demand and spending.
The report said that this “regulatory trident” of supportive measures is likely to boost disposable incomes, reduce borrowing costs, and lower retail prices, helping revive India’s consumption engine.
Private final consumption expenditure -- which accounts for nearly 61 per cent of India’s GDP -- is projected to rise meaningfully in the latter half of the fiscal year.