India’s fast moving consumer goods (FMCG) companies said a demand revival will depend on a stimulus package that results in people having more money to spend which could be in the form of lower income tax slabs, job creation and direct incentives for rural consumers. Finance minister Nirmala Sitharaman is scheduled to present the budget on February 1.
“Besides income tax rate cuts, rural support programmes like MGNREGS and large infra projects, including in rural India, are required,” said Varun Berry, managing director of Britannia Industries, which makes biscuits and dairy products. The Mahatma Gandhi National Rural Employment Guarantee Act ensures a minimum 100 days of paid work per year to families whose adult members opt for unskilled work. It’s regarded as the programme with the most potential to lift rural demand by executives and experts.
You might also be interested to read: GDP Advance Estimates: Govt Pegs Economic Growth At 5% For FY20
Sales of branded packaged goods have been muted over the past four quarters
Source: Economic Times
