Unilever Sees Big India Growth Boost from GST Cuts and Rising GDP

By siliconindia  |  Thursday, 11 December 2025, 04:17 Hrs


Unilever Sees Big India Growth Boost from GST Cuts and Rising GDP
  • Unilever expects strong growth in India due to GST cuts and robust GDP
  • HUL remains Unilever’s second-largest market, contributing 12-14% of global sales
  • Leadership changes aim to align volume growth with India’s expanding economy

Unilever is betting big on India as recent GST reductions and strong GDP growth create new momentum for consumer demand. Fernando Fernandez, Unilever’s global CEO, said India now offers 'massive opportunities' for both the parent company and its Indian arm, Hindustan Unilever (HUL). India continues to be Unilever’s second-largest market worldwide, making up 12-14% of the company’s total revenue.

Speaking at a JP Morgan Fireside Chat, Fernandez said Indian consumption had weakened over the last three years due to high food inflation. But recent policy steps such as GST cuts, personal income tax relief, and lower interest rates signal the government’s push to revive economic activity. He added that food deflation and improved financial conditions are already visible in India’s strong GDP numbers, which grew 8.2% last quarter.

According to Fernandez, the GST reduction alone impacts nearly 40% of HUL’s product portfolio and is expected to significantly lift sales across categories. He believes these reforms will fuel broad-based economic growth and expand consumer spending power across income groups.

Also Read: TCS to Acquire Coastal Cloud in $700 Million AI-Focused Deal

Unilever has also refreshed HUL’s leadership, recently appointing Priya Nair as CEO. Two additional CEOs have joined the Indian leadership team one from Hero MotoCorp as CFO and another from Britannia to head the food business. Their mandate is to bring HUL’s volume growth closer to India’s GDP growth rate.

Fernandez, who visited India recently, said the country’s diverse income landscape offers growth across all segments. With 60 million consumers earning at levels comparable to France and hundreds of millions more in rising income brackets, he expects Unilever’s brands to benefit from what he calls an “explosion of wealth expansion”.

ON THE DECK