New Delhi, Dec. 16 -- Fast-moving consumer goods (FMCG) companies in India are witnessing signs of demand recovery, supported by recent GST-linked price cuts and higher promotional activity, according to a report by ICICI Bank.

The report said that based on-the-ground checks and its own assessment, select FMCG categories are seeing an improvement in demand after companies reduced prices following GST cuts. These price reductions have encouraged consumers to buy more, especially in non-essential or discretionary categories.

It stated "FMCG are witnessing demand recovery aided by the recent GST-linked price cuts. Interestingly, price reductions have led to high elasticity (>1) in discretionary categories such as beauty, lotions and shampo...