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Below the Pre-Budget Expectations 2025-26 on FMCG & Retail Sector by Riddhi Bhagat, Founder, Binge on Baked

“We propose a relaxation of the basic income tax exemption limit under the old tax regime (from Rs 2.5 lakh to RS 3.5 lakh) and the increase in the standard deduction under the new tax regime (from Rs 50,000 to Rs 75,000) so that the middle-income and lower-middle-income consumers, who constitute a significant portion of FMCG customers, can have a  more disposable income. We expect a reintroduction of the concessional corporate tax rate in the upcoming Union Budget 2025. Even lowering GST rates on FMCG products, such as personal care and packaged foods, from 18% to 12% can significantly benefit the industry and consumers. Like other industries, FMCG also thrives on innovation. We expect an increased budget allocation and tax incentives for R&D. Research in areas such as eco-friendly  alternatives, packaging and nutrition will enable companies to stay ahead in the innovation curve. An expansion of the PLI scheme will be crucial for the industry when it’s grappling with slowing down of rural consumption and increasing urban inflation. The scheme will further encourage domestic manufacturing, reduce dependency on imports, and promote the "Make in India" initiative and Viksit Bharat 2047 agenda.”

 

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