New Delhi, Sept. 5 -- The latest Goods and Services Tax (GST) rate rationalization is expected to give a strong boost to the fast-moving consumer goods (FMCG) sector, according to a report by Nuvama.

The report stated that almost the entire FMCG pack will benefit from the announced tax cuts, which will translate into lower prices for consumers and better margins for companies.

The tax cuts are likely to drive consumption growth through three key factors, higher disposable incomes, stronger promotional activities, and grammage additions in low-unit packs.

It stated "Recent GST cuts are set to boost FMCG consumption via higher disposable incomes... larger packs shall benefit from price cuts/promotions".

At the same time, larger packs wi...