India's consumer demand witnessed a strong rebound in the October-December 2025 quarter, marking a significant turnaround after a prolonged period of slowdown. This recovery is primarily attributed to strategic Goods and Services Tax (GST) rate reductions implemented in September 2025, alongside a notable easing of inflationary pressures. The GST cuts, described as the biggest consumption-tax reforms since the uniform levy was introduced in 2017, targeted various consumption items, making products more affordable and stimulating discretionary spending across sectors like FMCG, electronics, and automobiles. Concurrently, India's consumer price index (CPI)-based inflation fell to a historic low of 0.25% in October 2025, before slightly rising to 0.71% in November 2025, still well below the Reserve Bank of India's target. This softer inflation meaningfully increased real incomes and household purchasing power, contributing to the demand resurgence. Fast-moving consumer goods (FMCG) companies reported early signs of revival, with overall FMCG consumption growing by 5.3% in the three months through October 2025, indicating a positive shift. Retail stocking strengthened, and orders at neighborhood stores saw a substantial increase. Data from the Finance Ministry and other reports indicated stronger consumption trends and higher sales across key sectors, with rural demand particularly outperforming urban consumption. While some individual companies, like Dabur India, reported muted Q3 FY25 numbers that didn't impress investors, the broader market and sector-wide data confirm an overall positive rebound in consumer sentiment and spending. Economists anticipate this consumption momentum to continue into early 2026, supported by strong macroeconomic indicators and ongoing policy support.