By Anshu Budhraja
The FMCG sector in India underwent a massive shift in 2020 due to the pandemic, owing to a striking shift in consumer demand. However, with normalcy setting, the sector witnessed a boost in sales and overall recovery, especially during the last few months. The Indian Government has been working towards restoring normalcy and paving the road to recovery for the economy and we are optimistic about the year 2021 not only for FMCG but for all sectors.
Self-care and holistic wellness have taken centre stage this year with a growing awareness around nutrition and immunity among consumers. In light of this, the role of the Indian Government in providing an impetus to the overall nutraceutical industry is crucial. We hope the Government will rationalise GST on healthcare supplements from 18% to 5% in the upcoming Union Budget 2021. The industry is all set to embrace this as a welcome move considering a holistic healthcare system combined with nutraceuticals and health supplements provide significant economic value and will have a momentous contribution in reviving the Indian economy.
Further, we hope for sustained efforts to boost micro-entrepreneurship and the growth of MSMEs which remain the second largest employment generator and are truly the growth engine of the Indian economy. Consideration of state-wise turnovers in determining threshold limits for registration under GST should be a step in this direction.
Lastly, the union budget’s key focus should be on the reduction in income tax as it will positively impact disposable income, support salaried class and strengthen the spending power of consumers. This will provide the much-needed relief to the middle class which has been the worst hit by the Covid-19 pandemic.
(The author is CEO at Amway India)