Pre-Budget Expectation for the FMCG, Retail sector : The need of the hour is to support farmers due to elevated inflation Says Vincent K A, Geojit Financial Services
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Below are view on Pre-Budget Expectation for the FMCG/ Retail sector 2023 By Vincent K A, Research analyst at Geojit Financial Services.
"The need of the hour is to support farmers due to elevated inflation, and hence there is a high expectation of a higher allocation for rural development in this budget. The allocation for FY23 was Rs.1.35 trillion, but it has already been spent Rs.1.55 trillion. Rural demand is important for overall growth, as rural India accounts for about 65% of the population. Being a pre-election budget, the usual contemplation is that it will be populist. We can expect measures like increasing MSP (Minimum Support Prices), expansion of warehousing, micro irrigation, and credit growth, increasing the revenue of the rural market. Other instruments we can expect is an increase in the allocation of schemes like Prime Minister Awas, Ujjwala and Saubhagya Yojana schemes, indirectly improving the standard of rural economy. Further, steps on rationalization of tax slabs or an increase in tax exemption are positive for FMCG/Retail companies by increasing the disposable income of consumers. We do not anticipate any changes in the GST rate in the budget."
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