The Centre’s focus on pumping in higher allocations for rural development, agriculture and allied services and schemes for employment and skilling of youth is expected to boost both rural and urban consumption for consumer products. At the same time, construction of an additional one crore homes under PMAY Urban 2.0 with an outlay of ₹10 lakh crore will also boost purchase of consumer durable products.

Naveen Malpani, Partner, Grant Thornton Bharat, “For the consumer and retail industry to succeed, volume boost is expected to come from ‘Rural Bharat’. The recent budget incentives announced, including skilling of youth by providing financial assistance, programmes for tribal communities for socio economic upliftment, income tax benefits for increased disposal income, will have positive impact on FMCG consumption. Additionally, the outlay ₹10 lakh crore outlay by the government for PM Aawas Yojana, will enhance consumer spending and financial stability, leading to increased demand for consumer goods and services. It will also help stimulate the FMEG market in India”

Abneesh Roy, Executive Director & Head of Research Committee, Nuvama Institutional Equities said, “As per our expectations, lower end of Consumption will see a benefit. Union Budget shows Pro Rural and Pro Urban Poor stance.”

Kamal Nandi, Business Head and Executive Vice President – Godrej Appliances, added, “ We definitely expect to see boost in consumption for appliances in the upcoming festival season due to focus on efforts on infrastructure development as well as increase in standard deduction limits.”

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