Companies in the fast-moving consumer goods (FMCG) and retail sectors are seeking policy continuity to sustain growth, stronger incentives for domestic manufacturing, and further reforms to improve ease of doing business, senior executives have told FE.
While calendar year 2025 saw income tax cuts, lower interest rates, and rationalisation of GST rates aimed at boosting domestic consumption, urban demand continues to remain uneven, industry experts said.
What did Saugata Gupta say?
Most companies are now counting on a continued policy focus on consumption revival to help sustain growth momentum in the current year. “As the Union Budget approaches, it presents an opportunity to accelerate momentum through targeted tax reforms, continued capital expenditure, and policies that support entrepreneurship,” said Saugata Gupta, MD & CEO of Marico.
Kumar Rajagopalan, CEO of the Retailers Association of India (RAI), the apex body of organised retailers, said extending MSME benefits to retail and wholesale traders, offering 150% depreciation on new capital investments with accelerated timelines, and reintroducing the EPCG scheme for the retail sector would help build modern infrastructure.
What did Dabur India CEO say?
Mohit Malhotra, CEO of Dabur India said the government may need to address inverted duty structures that have emerged following GST rate rationalisation. He also pointed to the need for policy consistency after a slew of measures announced last year.
“I think, there is need to address concerns around ease of doing business,” he says. “While the Finance Minister may not be able to directly address concerns about a few key missing categories in terms of GST rate rationalisation, she may want to give some direction in her Budget speech,” he said.
Malhotra was referring to categories such as detergents and household insecticides that remain in the 18% GST slab, even as most other FMCG products were moved to the 5% bracket in the rate cuts announced in September 2025. Union Finance Minister Nirmala Sitharaman chairs the GST Council, which decides on GST-related matters and includes state finance ministers and the Union Minister of State for Finance.
Sudhir Sitapati, MD & CEO of Godrej Consumer Products (GCPL), said, “There are a few large, mass-consumption FMCG categories, especially in homecare, that continue to be taxed at 18% and could logically move to a lower slab such as 5% to support demand. We also believe that higher allocations for infrastructure linked to labour and water-intensive categories should be released in a timely manner.”
Dairy companies such as Heritage Foods and Parag Milk Foods said the government should back an aggressive dairy push by strengthening infrastructure, improving farm productivity, and expanding milk collection networks. “First, subsidised access to quality feed; second, expanding veterinary college capacity. Third, increasing capital subsidies for mini-dairy units, particularly for women entrepreneurs, to generate rural employment and strengthen decentralized procurement are our three priorities for the Budget this year,” said Brahmani Nara, executive director, Heritage Foods.
Akshali Shah, executive director of Parag Milk Foods, said supporting investment in modern processing technology, organised supply chains, and better farm practices would help farmers reduce wastage. This would also give the Indian dairy sector greater global reach and recognition for quality products, she added.