Being the sixth largest economy in the world and the third largest economy in the terms of purchasing power parity, there is immense opportunity to rewrite the consumption story of our country," said Kamath.
Union Budget 2019: FMCG makers like ITC, Godrej Consumer and Emami have hailed the Union budget 2019-20 and believe it will push their slowing rural sales as the government has provided thrust on infrastructure development, MSME sector, and job creation. Industry leaders said the government’s investment in the infrastructure schemes as Pradhan Mantri Gram Sadak Yojana will benefit farmers and help to boost rural demand.
While, investments to improve infrastructure and amenities like complete rural electrification by 2022, and water security, will also be beneficial. “Overall, this is a ‘rural first’ budget. It is marginally positive for FMCG; proactive efforts to drive demand and increase consumption, should help improve growth in the long term,” Godrej Consumer Products Ltd Managing Director and CEO Vivek Gambhir.
ITC Chairman and Managing Director Sanjiv Puri said the government has provided thrust on infrastructure development, MSME sector and job creation. “The Budget proposal indeed gives a strong directional impetus to the agricultural sector by promoting ‘agri-preneurs’ and value addition in agri-produce whilst addressing the critical need for water security. The move to enable sustainable agriculture through zero budget farming and promotion of agri-based renewable energy is indeed laudable,” said Puri Expressing similarly, Jyothy Laboratories Joint Managing Director Ullas Kamath said that the budget would stabilise and strengthen the rural economy. “The Union budget presented Friday came with a major focus on the heart of our country – agriculture and the rural economy.
Being the sixth largest economy in the world and the third largest economy in the terms of purchasing power parity, there is immense opportunity to rewrite the consumption story of our country,” said Kamath. While, Dabur India CEO Mohit Malhotra feels that the union budget seems to have fallen short of meeting the industry’s expectations. “The industry had been looking forward to fiscal stimulus to spur economic growth and lead to a resurgence of the rural economy.
However, those big, bold steps are missing,” he said. However, he also added, Finance Minister Nirmala Sitharaman, who has announced a series of long-term initiatives “would help improve overall consumer sentiments in the hinterland and put more disposable income in the pockets of the urban consuming class.” Terming it as a “good budget” Emami Group Director Aditya V Agarwal said “Infrastructure, education and rural economy are the major beneficiaries from this budget, signaling more employment and spending power generating strong demand across business sectors including FMCG.”