Unilever, the British consumer goods giant, is placing a big bet on India’s economic momentum, viewing recent tax changes and robust GDP growth as catalysts for major business opportunities. According to CEO Fernando Fernandez, both Unilever and its Indian subsidiary, Hindustan Unilever Ltd. (HUL), stand to benefit significantly from a more dynamic economic environment in the country.
India’s economy has shown strong performance recently, buoyed by high GDP growth and government measures such as reductions in the Goods and Services Tax (GST), personal income tax cuts, and interest rate adjustments. Fernandez noted that these reforms are timely responses to economic challenges seen over the last few years, including double-digit food inflation, and are now helping to stimulate consumption.
The GST reduction has a direct impact on roughly 40% of HUL’s product portfolio, lowering tax rates on everyday consumer goods — from soaps and personal care items to processed foods — which is expected to drive demand and support long-term consumption growth. Fernandez also pointed to early signs of food deflation and strong quarterly GDP figures as further indicators of rising consumer demand.
To capitalize on this opportunity, Unilever has restructured leadership at HUL, appointing Priya Nair as CEO and bringing in experienced leaders from other major Indian firms to drive volume growth aligned with India’s economic expansion. Fernandez emphasized that the company’s brands are well positioned to benefit from an expected surge in wealth and consumption across diverse income segments.
India remains one of Unilever’s most important markets globally, consistently ranking as its second-largest market by revenue, contributing around 12–14% of the company’s total sales. With such a vast and varied consumer base, Unilever is confident that it will be among the primary beneficiaries of India’s growth story in the years ahead.