Union Budget Boosts Consumer Spending and Revitalizes FMCG Sector

The Union Budget 2025-26 focuses on revitalizing the FMCG sector by providing significant tax reliefs and boosting rural development. These measures increase household disposable income and are expected to stimulate consumption, particularly in rural areas, supporting sustainable growth and enhancing the purchasing power of the middle class.

The Union Budget 2025-26, unveiled by Finance Minister Nirmala Sitharaman, presents a promising outlook for the fast-moving consumer goods (FMCG) sector. The budget incorporates significant tax reliefs and strategic investments in rural development, aimed at revamping consumer spending and enhancing economic stability.

Industry leaders, including Emami's Harsha Vardhan Agarwal and PepsiCo's Jagrut Kotecha, have praised the budget's potential to alleviate inflationary pressures while boosting consumption. Enhanced disposable income is projected to propel discretionary spending, strengthening economic momentum.

With a focus on income-led economic revival and inclusive growth, the budget sets a robust fiscal foundation for both rural and urban economies. Experts anticipate it will rediscover demand for premium FMCG products and widen market opportunities, particularly in regions recovering from the impact of high food inflation.

(With inputs from agencies.)