The Union Budget 2025-26 has sparked optimism across the FMCG, retail, and food & beverage industries, with its focus on pro-consumption tax reforms, agricultural productivity, and domestic manufacturing. Key players, including Godrej Consumer Products and Adani Wilmar, praised the budget for driving demand, enhancing supply chains, and fostering a more resilient economy. Bharat Puri, MD Pidilite Industries and Chairman CII FMCG Committee stated, “This budget stimulates consumption by enhancing consumer purchasing power, providing a significant impetus to the consumer sector. The sustained emphasis on infrastructure development, coupled with a three-year project pipeline under the PPP model and state-backed incentives for capital expenditure, lays the groundwork for sustained long-term economic expansion. Overall, this is a prudent and growth-oriented budget.”
The government’s continued commitments to investments in infrastructure and R&D, backed by disciplined fiscal management targeting 4.4% deficit, establish a strong foundation for sustained economic growth & builds confidence in India’s capability & potential, said Rajneet Kohli, Chief Executive Officer and Executive Director, Britannia.
Highlighting the significance of rural development and manufacturing, Aasif Malbari, Chief Financial Officer – Godrej Consumer Products Ltd, shared his perspective, “The Union Budget 2025 takes a balanced approach by strengthening rural infrastructure, manufacturing, and consumer spending—three critical pillars for the FMCG sector. Investments in rural development and job creation will boost economic activity and drive higher consumption, opening new opportunities for market expansion. The National Manufacturing Mission is a strong step toward enhancing domestic production, reducing import dependencies, and improving cost efficiencies. Additionally, tax reforms benefiting the middle class will increase disposable income, further fueling demand across essential and aspirational FMCG categories.”
According to Malbari, the Budget lays a strong foundation for a more consumption-driven economy, creating significant growth opportunities for the FMCG industry.
On the food processing front, Angshu Mallick, MD & CEO – Adani Wilmar, emphasized the agricultural focus of the Budget, “The Union Budget 2025 reflects a strong commitment to strengthening India’s agricultural ecosystem, with a clear focus on enhancing productivity, promoting crop diversification, and improving post-harvest infrastructure. The focus on tax reliefs and measures aimed at increasing disposable incomes, especially for the middle class, is a positive move that will strengthen purchasing power and drive demand for quality food products.”
Adding further context, Mallick highlighted how initiatives such as the Prime Minister Krishi Yojana aim to boost farm productivity, “The launch of Prime Minister Krishi Yojana targeting low-productivity districts is a progressive step that will not only boost farm incomes but also support the growth of allied sectors like edible oils and food processing. The Budget takes encouraging steps toward improving agricultural productivity and boosting consumer well-being. Support for oilseed cultivation and food processing will enhance domestic production, while tax reforms and rural development efforts are expected to drive consumer demand.”
Mallick also noted the increasing consumer demand for healthier food options, “We are also seeing a growing awareness of nutrition, with more people making healthier food choices. As incomes rise, particularly within the expanding middle class, the demand for nutritious foods is increasing, making the government’s focus on improving the accessibility and affordability of essential food items a welcome move. Additionally, the enhancement of cost norms for nutritional support programmes like Saksham Anganwadi and Poshan 2.0 will strengthen efforts to improve the nutritional status of children, women, and adolescent girls. We welcome this move, as at Adani Wilmar, we are equally dedicated to combating malnutrition and promoting healthier lifestyles through initiatives like Fortune SuPoshan.”
Taking a broader look at the Budget’s impact, Mayank Shah, Vice President – Parle Products, elaborates on its potential to revive consumer demand, “The Union Budget takes a bold step toward spurring demand for consumer goods, addressing challenges the sector has faced over the past few years. For instance, making an effective tax-free income of Rs.12.75 lakh is quite effective as it increases consumption due to higher disposable earnings. The capturing of rural demand via targeted agricultural investment across 100 regions, along with MSME aid assistance, will serve the dual purpose of creating additional employment and uplifting spending power.
“Some new job opportunities and utilization of physical resources and economic activity are expected with the increased concentration on rural and urban infrastructural development, which includes the Urban Challenge Fund. The consumer demand has largely been depressed in the recent past due to inflation and increasing costs of inputs, but with these changes, the hope is that there is an increase of purchasing power within the common man. Consequently, this will also create a demand for capital goods supporting industries further down the line.
“In a nutshell, the budget lays the foundation of economic growth across all sectors rather than just certain groups, and so the long-term positive impacts will be felt across the board. It is a goal-oriented look towards broad-based economic development, expansion of demand, recovery development, and sustainability.”
From spurring demand to fostering inclusivity, the Budget also makes strides in driving industrial growth.
Manish Anandani, Managing Director, Kenvue India and South Asia, echoes this optimism, “To fulfil the Government’s ambitious vision of ‘Viksit Bharat’ by 2047, the Union Budget takes definitive steps with pro-growth reforms and initiatives to accelerate inclusive growth, further the agenda of ‘Make in India,’ nurture innovation and incentivize investments. The budget outlines several initiatives aimed at enhancing infrastructure, augmenting India’s manufacturing capabilities, supporting MSMEs, and catalyzing employment-led development with a focus on skilling programs for women and youth. One of the biggest highlights of the Union Budget is the personal tax reforms aimed at stimulating middle-class spending and revitalizing urban demand, which is poised to positively contribute to India’s consumption story and spur economic growth.”
“For middle-class families, strategic focus on targeted tax relief and enhanced social security measures, will uplift household sentiments, boost disposable income and drive consumption. This will provide much-needed financial stability to the masses,” said Saugata Gupta, MD & CEO, Marico Limited and he added, “The continued focus on rural development, with enhanced credit availability for farmers and initiatives like the National Mission for Edible Oilseeds and Aatmanirbharta in Pulses, will drive agricultural productivity and strengthen rural economies. The allocation of ₹1.71 lakh crore to agriculture and allied activities, coupled with initiatives like the National Mission for Edible Oilseeds, Aatmanirbharta in Pulses, and the Prime Minister Dhan-Dhaanya Krishi Yojana, will drive agricultural productivity, stabilize rural economies, and ensure farmers have access to essential resources. In the realm of health and nutrition, the enhancement of cost norms for nutritional support programs like Saksham Anganwadi and Poshan 2.0 is a significant step.”
“With the middle class now driving nearly 60% of domestic consumption, rising purchasing power is likely to accelerate demand for aspirational and premium products. This holistic strategy positions the economy for sustained expansion by creating a strong synergy between consumer spending, industrial growth, and workforce empowerment,” shared Gautam Singhania, Chairman & Managing Director, Raymond Group.
Adding his insights on the broader economy, Anand Ramanathan, Partner & Consumer Industry Leader, Deloitte India, stated, “The budget will help spur both the rural and urban economy by encouraging private consumption while maintaining government capital expenditure. Reversing inverted duty structures, enhancing ease of doing business, and promoting exports in sectors such as textiles, food processing, toys, footwear, and leather will help boost manufacturing and encourage private investment in consumption-oriented sectors. Social security for gig workers, enhancing guarantee support for MSMEs, extending mudra loans to homestay providers, and making credit more accessible for farmers will help broad base the consumption support beyond the formal sector to more unorganised parts of the economy.”
Sunil Agarwal, Co-founder and Chairman of Joy Personal Care (RSH Global), added another dimension with his focus on consumer spending power, “We welcome the government’s budget for its strategic focus on economic growth through increased consumer spending power. The proposed income tax reforms are poised to enhance disposable income, driving demand across the FMCG sector, including beauty and personal care.”
Agarwal also touched on how inclusive development would fuel FMCG growth, “By prioritizing inclusive development—supporting disadvantaged groups, youth, farmers, and women—the budget strengthens purchasing power, further stimulating market demand. Additionally, initiatives aimed at boosting farm productivity, manufacturing, and exports—such as a national mission for high-yield crops and subsidized credit for farmers—will fortify supply chains and optimize input costs, ensuring long-term sectoral growth.”
Discussing tax and infrastructure reforms, Agarwal further noted, “Taxation reforms, including potential corporate tax reductions, and streamlined tax procedures, will foster a more competitive and business-friendly landscape. Furthermore, investments in digital infrastructure, skill development, and MSME promotion will serve as key enablers of sustained consumption and economic expansion. The introduction of the National Manufacturing Mission further reinforces this vision by incentivizing manufacturing activities, enhancing production capabilities, and promoting innovation, thereby improving the global competitiveness of Indian manufacturing—a significant advantage for home-grown brands.”
On the Food & Beverage sector, Shivaraj Jayakumar, Practice Leader, Consumer and Internet at Praxis Global Alliance, emphasized the Budget’s farm-to-fork ecosystem approach, “The Union Budget 2025-26 brings significant support for the Food & Beverage sector, with a strong focus on food processing and agricultural value addition. The establishment of a National Institute of Food Technology in Bihar, along with enhanced credit for farmers and MSMEs, will strengthen the farm-to-fork ecosystem. Additionally, the push for high-yielding seeds, sustainable farming, and improved warehousing infrastructure will enhance food security, quality, and exports, driving long-term sectoral growth.”
Highlighting the retail industry, Jayakumar concludedm “With increased credit availability for MSMEs and startups, along with a focus on ease of doing business, the budget lays the groundwork for a more dynamic retail ecosystem. The rationalization of customs tariffs and support for domestic manufacturing will benefit retailers by ensuring a more efficient supply chain. Additionally, initiatives like BharatTradeNet and digital public infrastructure will facilitate smoother trade, enhancing the retail sector’s digital and offline integration to meet evolving consumer demands.”