Better access to credit and reduction in income tax slabs can boost the FMCG sector

Pre-budget expectations

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Vishal Shah, founder, and managing director, Storia Foods & Beverages

When it comes to the food and beverage or FMCG sector, there are still many expectations from the Union Budget 2020. Vishal Shah, founder, and managing director, Storia Foods & Beverages shares his pre-budget expectations, “Putting forth labor reforms, promoting solar energy and reducing GST on branded food products are just some of the industry-wide expectations. Despite the projection that India’s retail market is expected to hit US $1.2 trillion (approximately Rs 85 trillion) by 2021, given our present economic scenario, the upcoming budget needs to primarily address the decline in consumer spending.”

According to him, the first budget in July this year did help the start-up ecosystem to flourish via economically progressive policies. Stakeholders are therefore expecting start-up friendly inclusions in the Union Budget 2020. He further adds, “For ensuring growth in the FMCG segment, the budget needs to secure a higher purchasing power for the consumers. With better access to credit and a reduction in income tax slabs, growing FMCG brands can expect an even greater boost in the upcoming financial year. Simplifying taxation and managing foreign investments to continue promoting businesses under the Make in India campaign is crucial for Indian enterprises and consumers. A push toward more sophisticated digital infrastructure is also instrumental in helping smaller businesses grow at a rapid pace.”

 

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