GST Cuts a Year On: Auto Sales Surge, FMCG Gains Erode

A year after India's GST rationalisation, automobile sales have surged while commodity inflation has eroded gains in food, consumer goods and apparel. Vehicle retail sales hit 29 million units in the 11 months to August 2026, up 20% year-on-year, according to ICRA. FMCG firms initially cut prices about 10% but have since raised them 6-7%, leaving consumers only 2-3% better off.