It is not just the auto industry that is grappling with a slowdown in sales. India's consumer industry is also witnessing a consumption slowdown. While India's large fast-moving consumer goods (FMCG) companies expect near-term demand to be subdued, big retailers say that the upcoming festive season will be better than last year.

The growth in India's FMCG sector has slumped over the last 6 months. Market research firm Nielsen says the FMCG growth trend was largely dampened by weak volumes.

In the April-June quarter, for instance, industry volumes grew 6.2 percent against 9.9 percent growth in the January-March quarter.

The consumption slowdown is not restricted to any one segment and has played out across both food and non-food categories. FMCG players say a delayed monsoon, coupled with continued sluggishness in the economy, have only added to the pain and recovery is tough to pin down.

“Generally there is a slowdown in demand and that is definitely affecting the economy. The entire FMCG sector is affected,” said Adi Godrej, chairman of Godrej Group.