These are major expectations in Budget 2017 from FMCG sector, the worst affected by demonetization

PM Modi’s policy of demonetisation that scrapped off Rs 500 and Rs 1000 notes from circulation overnight has badly affected the businesses in India. FMCG category, which relates to our daily consumption, has been badly hit. While the impact of a dip in sale in double in the urban markets as compared to the rural, date from Brickworks Media (a concern of Chrome DM), a research and data analytics company shows, tea has been the least affected item of demonetization at 10.77% and noodles ranks as the mostly affected at 33.23%. Even daily necessities like soaps and toothpaste saw a dip of 16.17% and 18.5% in the urban market respectively. ALSO READ: You may have to pay an extra tax for eating pizza and burgers after budget, if PM Modi says a yes

With the annual finance budget been pre-poned this year, the FMCG companies are pinning high hopes on a growth oriented budget this time.

“We are expecting a growth-oriented Budget with various stimuli to revive consumer confidence… proactive reforms to stimulate demand by increasing the money in the hands of the emerging middle class and rural India, this will help bring FMCG growth back on track,” Godrej Consumer Products Ltd Managing Director Vivek Gambhir told the media.

With every other budget, restraining deficits and delivering higher growth is going to be a great challenge. Emami group, leading FMCG brand in Kolkata expects the budget to address issues related to GAAR, POEM, GST. Also a growth oriented budget is what they need at this hour to boost consumption, increase public investment, promote digitisation, broaden tax base and lead higher growth”. ALSO READ: Statutory Warning: Cigarettes to cost more after budget?

“While tax rates are expected to reduce with increased basic exemption limits, but taxpayers base is expected to broaden. Ease of doing business would be another focus area in currently subdued business environment. Agriculture, infrastructure and service sectors are also expected to get due attention and support,” said Emami CFO & CEO Finance Strategy & Business Development N. H Bhansali.

To believe an agency news report, the sales of Hindustan Unilever and Jyothy Laboratories have dipped quite during the year end months. The agency has learnt that they admitted the fact that ‘adverse liquidity’ in the market has affected them.

​ “We are expecting an all-inclusive, progressive Budget to assist the sustainable economic growth of our country. In order to do so, it is essential for the government to focus on three crucial factors – boosting the rural sector and agricultural productivity, providing benefits to the salaried tax payers in order to increase disposable income in the urban markets, and encouraging private investment along with generation of employment because for the demographic dividend to be leveraged, job creation is very critical. These steps coupled with last year’s good monsoon will drive both urban and rural consumption,” said Saugata Gupta, MD & CEO, Marico Limited.