To say that the Indian consumption story is looking robust is almost looking like a cliché. If you are surprised why FMCG companies with large market caps have appreciated over 40% in the last year, then here is the answer. After a very long time, the consumer stocks find themselves in a very sweet spot. There are three key reasons for the same. Firstly, the GST has been a big boon for the FMCG stocks. While lower GST on food products has triggered a major demand surge, there is a larger benefit for FMCG companies from GST. The GST gets rid of state and local levies and replaces it with a centralized GST. This enables these companies to re-orient their logistics on efficiency lines than on tax lines. Secondly, government has pumped a lot of money into urban India through the Finance Commission payouts and the OROP for army personnel. This is a big trigger for the consumption story. Thirdly, the big trigger comes from the rural landscape. A mix of rural spending and rural infrastructure investments are leading to higher rural income levels. As farmer look to double incomes by 2022, this is a big boost for consumption stocks. So buying consumption stocks surely looks like an obvious opportunity.