Mumbai, June 8 -- India's consumer sector witnessed a strong recovery in demand during the fourth quarter of FY26, driven by resilient rural consumption, improving urban demand and affordability benefits from GST-related measures, according to a report by Nuvama.

The report noted that Q4FY26 emerged as a turnaround quarter for the sector after a prolonged slowdown witnessed during FY25 and the first half of FY26.

It said, "Sharp recovery, but inflation, El Nino overhang".

According to the report, urban demand recovered broadly across staples and paints, while rural growth remained strong and resilient.

The recovery in urban markets was supported by policy measures such as GST 2.0 rate cuts and income-tax relief, which improved disposa...