Union Budget to boost consumption and FMCG sector

The Union Budget for 2022-23 has several initiatives which can boost the FMCG industry as it is seen as boosting consumption.

Ahmed ElSheikh, President, PepsiCo India said that reviving economic growth, increasing consumption, and fostering investment to fuel post-pandemic growth have been key objectives for the government, and the Union Budget 2022 reflects this very intent. This year’s Union Budget lays forth a vision for India at 100 years. The Government is leading from the front by raising public sector spending to keep the economic recovery on track. Digitization combined with infrastructural creation will accelerate economic development, stimulate innovation and entrepreneurship and will enhance living standards while keeping sustainability at its core.

“The increased outlay for PM Gati Shakti projects for multi-modal connectivity including 100 new railways logistics hubs coupled with steps like enhancing local oilseed production, extending the last date for starting production for new manufacturing units, encouraging alternate cropping will aid growth of the FMCG sector and further strengthen Govt’s vision of an Atmanirbhar Bharat”, he added.

Varun Berry, Managing Director, Britannia Industries Limited, said the Union Budget 2022 has focused on recovery and growth of the economy in continuation of last year’s budget. The announcement of increasing the capital expenditure target by 35.4 per cent in FY23 is laudable as it will provide a multiplier effect on the economy. The continued expansion of highways, and establishment of new cargo terminals in three years as part of PM Gati Shakti plan will enhance competitiveness of Indian industry. It will lower the cost of transportation and enable better connectivity between production and consumption markets, both domestic and global.

The budget will enhance rural income and revive demand for rural consumption by putting more money in the hands of farmers. The continuation of Rs 2.37 lakh crore provision towards minimum support price (MSP) to farmers will support rural buoyancy, he added.