Union Budget: Rural Push, Tax Relief & Focus on MSMEs To Boost FMCG Growth The Budget takes a balanced approach by strengthening rural infrastructure, manufacturing and consumer spending, hence solidifying the consumption in the fast-moving consumer goods (FMCG) sector

The 2025 Union Budget's focus on rural development, with enhanced credit availability for farmers will push agricultural productivity and strengthen rural economies. The Budget takes a balanced approach by strengthening rural infrastructure, manufacturing and consumer spending, hence solidifying the consumption in the fast-moving consumer goods (FMCG) sector.

"Investments in rural development and job creation will boost economic activity and drive higher consumption, opening new opportunities for market expansion. The National Manufacturing Mission is a strong step toward enhancing domestic production, reducing import dependencies, and improving cost efficiencies. Additionally, tax reforms benefiting the middle class will increase disposable income, further fueling demand across essential and aspirational FMCG categories," said Aasif Malbari, chief financial officer - Godrej Consumer Products Ltd.

For middle-class families, strategic focus on targeted tax relief up to INR 12 lakh and enhanced social security measures, will uplift household sentiments, boost disposable income and drive consumption. "Overall, Budget 2025 strikes a crucial balance between fiscal responsibility and progressive reforms. This is a budget that fuels aspirations, strengthens the middle class, drives simplicity, and charts a clear path toward a more prosperous and inclusive future. This will provide much-needed financial stability to the masses," said Saugata Gupta, MD & CEO, Marico Limited.

The allocation of INR 1.71 lakh crore to agriculture and allied activities, coupled with initiatives like the National Mission for Edible Oilseeds, Aatmanirbharta in Pulses, and the Prime Minister Dhan-Dhaanya Krishi Yojana, will drive agricultural productivity. "The focus on accelerated sectoral growth is evident through incentives for manufacturing, technology, infrastructure, and sustainable energy. By investing in digital infrastructure, skill development, and supply chain enhancements, the Budget paves the way for direct and indirect jobs, innovation, and long-term economic resilience," Gupta added.

The emphasis on MSMEs, including credit support for micro enterprises, and emphasis on upskilling the youth and reforms in education is a step forward in fostering entrepreneurship and job creation. The government's efforts to strengthen the regulatory framework, streamline compliances to enhance the ease of doing business is a solidifying step towards boosting economic growth.

"This is a well-structured and progressive budget, aligned with the government's vision of a Viksit Bharat. It maintains a strong focus on inclusive growth, covering key sectors such as agriculture, farming, women's empowerment, and manufacturing. The continued emphasis on capital expenditure is commendable. A major highlight of this Budget is the significant announcement on personal income tax, which is a welcome move. By putting more money in the hands of consumers, this step is expected to boost consumption and drive an increase in discretionary spending, ultimately strengthening overall economic momentum," said Harsha Vardhan Agarwal, vice chairman & MD, Emami Ltd.