INSUBCONTINENT EXCLUSIVE:
Notably, rural market has posed challenges for the FMCG sector
However, easing inflation and declining commodity prices have led rural markets to outperform urban counterparts | Photo: Shutterstock4 min
read Last Updated : Jul 15 2024 | 9:34 AM IST
In the lead-up to the Union Budget, the consumer sector is anticipating announcements that
Over the past few months, the rural sector has already begun to show signs of increasing demand.
Besides, the consumer sector is also
advocating for heightened spending in rural areas, particularly in infrastructure and agriculture, to revitalise the economy
This will be the first Budget of Prime Minister Narendra Modi's third term in office, presenting an opportunity to prioritise long-term,
The recent signs of recovery in rural demand, especially in the FMCG sector, highlight the potential of these markets, driven by improved
also said that the Budget should prioritise rural job creation, incentivise capital expenditure, and foster innovation
"In line with the 'India@100 Vision', substantial resources should be allocated to support exports and job creation in both rural and urban
By addressing the evolving needs of rural consumers, we can drive growth and significantly contribute to India's overall economic
Parle G, highlighted the need for increased funding for MNREGA and a rise in spending on rural infrastructure
He also noted that job creation is necessary in both rural and urban India, with an emphasis on increasing spending on urban infrastructure,
as job creation also enhances demand within the sector.
Echoing the sentiment, Manish Aggarwal, Director at Bikano, Bikanervala Foods,
stress the importance of schemes to enhance rural consumption
We also anticipate policies to protect oilseed farmers and the oleochemical industry
Moreover, we expect the government's focus on capital expenditure and private-sector manufacturing and services to drive income generation
Increasing funding for the agriculture accelerator fund is crucial for improving farming practices through new technology and better storage
However, easing inflation and declining commodity prices have led rural markets to outperform urban counterparts
According to a report from NIQ dated May, India's FMCG sector witnessed rural consumption growth in volume terms outpacing urban consumption
for the first time in five quarters during the January-March period.
The report indicated that rural consumption grew at a rate of 7.6 per
cent year-on-year in Q1CY24, surpassing urban consumption, which stood at 5.7 per cent
This represented a significant shift from Q4CY23, when rural volume growth was at 5.8 per cent, while urban consumption was higher at 6.9
per cent.
For B Thiagarajan, Managing Director of Blue Star, a well-known consumer electronics brand, the forthcoming Budget should focus
We hope the government extends the Production Linked Incentive (PLI) scheme for critical components like compressors and microprocessors
Investments in the AC industry have benefited from PLIs, and we hope these are extended
industry has experienced substantial growth this summer, with Blue Star achieving over 50 per cent growth during the April-June period
components and a push towards innovation and research that will enhance our global competitiveness
While the government's infrastructure push is likely to continue, we also hope to see an emphasis on social infrastructure such as hotels
