Consumer goods and healthcare services are sectors with a positive outlook, with the India consumer goods sector growth expected to witness a revenue growth of 17.3 per cent CAGR during the 2025-2030 period, according to a report released on Friday by Brickwork Ratings. The report highlights strong domestic demand and improving economic fundamentals as key drivers of long-term sector growth.
India Consumer Goods Sector Growth Driven by Demand and Premiumisation
The report from Brickwork Ratings said the strong revenue growth of the consumer goods sector is driven by credit growth, GST cuts, unlocking of demand from Tier-II and Tier-III cities, and premiumisation. Rising disposable incomes and expanding consumer spending are also expected to support sustained growth across urban and semi-urban markets.
Meanwhile, tailwinds for the healthcare services sector include strong interest and debt coverage ratios, a medical tourism market estimated at $13 billion, and expansion of the Ayushman Bharat Programme to senior citizens over the age of 70.
GDP Growth and Stable Credit Outlook Support India’s Economy
“We expect the economy to remain anchored by 7.7 per cent GDP growth in FY26, supported by strong manufacturing and services activity. For FY27, growth is projected at 6.7 per cent,” said Rajeev Sharan, Head of Research, Brickwork Ratings.
Inflation is projected to be around 4.6 per cent in FY27, although geopolitical risks and El Niño remain key watch points. The RBI’s neutral monetary stance, following a cumulative 125 basis points repo rate reduction through 2025 to 5.25 per cent, preserves policy flexibility amid external shocks. The report suggests that stable inflation and supportive monetary policy will help sustain business confidence.
The report forecast a stable credit outlook across 22 of its 25 rated sectors in FY27, supported by resilient domestic demand, sustained government capital expenditure, healthy balance sheets, improving operating margins, and predictable cash flows despite geopolitical uncertainties.
Technology, Healthcare and Infrastructure Remain Bright Spots
Technology, automobiles, telecom, infrastructure, logistics, industrials, and power generation benefit from deleveraging, policy support, export opportunities under new trade agreements, and long-term demand visibility.
“While sectors such as chemicals and textiles face margin pressures, and transport and airports remain relatively leveraged, their credit profiles are supported by strong solvency, improving profitability, and stable revenue visibility,” said K. H. Patnaik, Chief Ratings Officer, Brickwork Ratings.
Of the 25 sectors across eight industry clusters, the ratings agency assigned a negative-to-stable rating to the power distribution segment.
“The weakness in the segment is on account of elevated and unsustainable debt levels reflected in the weak credit profile and continued cash gap created due to muted or delayed tariff hikes. DISCOMs which have identified and reduced distribution losses and improved collection efficiency will be better positioned to curb losses and meet the LPS terms,” said Niraj Rathi, Senior Director – Ratings, Brickwork.
From a macroeconomic perspective, the ratings agency maintained that India’s macroeconomic environment remains resilient, providing a supportive backdrop for credit quality despite heightened geopolitical uncertainties.
Read More:
India GDP Growth Forecast Raised to 7% as Bank of America (BofA) Upgrades Outlook
India’s retail inflation at 3.93 pc in May, remains below RBI’s 4 pc target
