Union Budget 2023 | How FMCG sector reacted to the Budget

Union Finance Minister Nirmala Sitharaman presented the last full budget of the second term of the Narendra Modi government in Parliament on February 1. Here's how experts, industry insiders reacted to this year's Budget. Stay tuned to DH for the latest updates!

FM did not tinker with capital gains which has cheered markets: Sanjay Moorjani, Research Analyst, SAMCO Securities

"The government’s relief on personal income tax by providing rebate upto Rs.7 lakh and making changes in the slab rate under the new income-tax regime comes as a major boost to the Indian markets. The FM did not tinker with the capital gains which has cheered the markets.

As the disposable income increases, FMCG sector gets a shot in the arm which are already battling inflation. BFSI sector also stands to gain as deposits and investments in insurance, mutual funds rise."

Govt should promote FMCG sector by subjecting it to same low GST as animal products: Abhishek Sinha, Co-founder, GoodDot

"India is an agrarian society, with almost 60% of the population depending on agriculture for their livelihood. The food processing sector is the key to improving agrarian productivity and income. Plant-based meats can be a key driver of this change with the use of locally grown crops while contributing to food security and protein nutrition in a sustainable way. It could also be a great addition to our agri export basket, too. We request the government to promote this important sector by subjecting it to the same low GST as animal products. In addition, PLI and other export-based incentives can also be provided to boost production and position India as the leading plant-based meat producer in the world."

We look forward to fair and considerate inputs to help us be a boon to this society: Mohit Rathod, Co-Founder, Truly Desi

"According to the market study, the price of animal fodder has been increasing throughout this year. This has impacted cattle input costs, from small households running cattle to big dairy farms. This has led to the inflation of milk and milk products. Being a brand that works ethically on end-to-end processes of all our products makes it even harder when it comes to cost-cutting or applying alternatives. And hence we look forward to fair and considerate inputs to help us be a boon to this society."

Now is the time to inject additional capital investment to boost supply-chain efficiency at the local level: Manas Madhu, Co Founder, Beyond Snack

The FMCG sector's growth trajectory and consumer demand trends are closely connected. When customers have more disposable income, voluntary spending and sales of fast-moving consumer goods (FMCG) rise. The government should consider lowering personal income tax rates in its upcoming push for reform, as this would raise disposable income levels and stimulate the demand cycle. The government has already asserted that the goal of the upcoming budget is to maintain India's current rate of economic growth. The FMCG sector has recognised the potential of rural demand, and now is the ideal time to inject additional capital investment to boost supply-chain efficiency at the local level.

With the rise of digital and remote work, people's desire for snacks has increased despite their efforts to reduce their household spending. Our growth-driving strategy in 2023 will centre on innovation, the prioritisation of profitable sales channels, and the diligent management of stock-keeping units.