India's Consumption Boom: Policy Support & Low Inflation Drive 2026 Growth

• India anticipates a strengthening consumption-led growth cycle in 2026, driven by moderate inflation and robust policy support.
• Economists expect improved household purchasing power due to direct tax relief, GST reductions, and 125 bps RBI rate cuts.
• 2025 set the foundation with retail inflation consistently within the 2-6% tolerance band, even turning negative for food prices.
• Government data shows Real Private Final Consumption Expenditure (PFCE) grew 7.0% in Q1 FY2025-26 and 7.9% in Q2 FY2025-26.
• Moderate transport and fuel inflation in 2025 further eased cost pressures, supporting broader consumption recovery.

Why It Matters: India's 2026 consumption outlook is strong, fueled by low inflation, policy support, and rising disposable incomes.