Union Budget India 2019: While the industry bears the brunt of demand slowdown because of the hit that rural income has taken, almost all of the industry leaders have asked for government intervention in the same and spur demand.
Union Budget 2019: With the much anticipated Union Budget 2019 due to be unveiled shortly, it is almost showtime for the Narendra Modi government which came back into power with a sweeping mandate. Several industrialists and industry leaders in the Fast Moving Consumer Goods industry have already talked a lot about the expectations from Modi 2.0 and Cargill Oils India is no different. “There is perceptible consumption growth slowdown in recent quarters, amplified by liquidity crunch in trade and low rural income. We hope that the budget will bring forth policies which will address rural income, help create surplus disposable income, which will help in consumption growth,” Piyush Patnaik, Managing Director, Cargill’s oils business in India told Financial Express Online.
Further, the boost in rural income has to be a long term approach and should not be only a quick fix solution, Piyush Patnaik said. While the industry bears the brunt of demand slowdown because of the hit that rural income has taken, almost all of the industry leaders have asked for government intervention in the same and spur demand.
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As unemployment is now officially on a 45-year high, creating jobs is another challenge that Nirmala Sitharaman will face head-on during her tenure as Finance Minister. Talking about this issue that singes Indian economy, for now, Piyush Patnaik told Financial Express Online that “young population has emerging aspirations on better consumption, better employment and easier facilitation for self-employment opportunities. The budget and policies must be focused on this for sustainable growth,” he said.
Moreover, as health issues are a big drag on the economy, “there must be an incentivisation of all companies to bring forward healthier food products and an all-round policy approach to encourage and enforce higher health standards for food. It will be important that we create frameworks for linking it to the farm economy,” Patnaik told Financial Express Online.
It remains to be seen whether the Narendra Modi-led government delivers the promises of its manifesto and revives the country from the tough economic situations that it currently reels under.