ManagementFMCG players seek continuation of rural upliftment schemes
The fast moving consumer goods (FMCG) industry has sought continuation of rural employment guarantee schemes in the upcoming Budget to help boost consumption across the country, particularly in villages.
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"We expect the government to continue their focus on rural sector with rural employment guarantee schemes and profitable supply of funds to those areas," Dabur India Chief Executive Officer Sunil Duggal told PTI.
These measures would help the FMCG industry by boosting demand in rural areas and villages, he added.
Demand from the rural sector helped the Rs 1-lakh crore industry grow at around 17-18 per cent in the last fiscal despite heavy odds such as rising input costs, high inflation and the economic downturn.
According to industry experts, rural markets account for over 35 per cent of the total sales of FMCG products in India.
"We don"t expect any tax sops from the government in budget... But would like to see that the government should keep spending more on rural areas, which is not only good for FMCG segment but for the whole country," Godrej Group Chairman and Managing Director Adi Godrej said.
Besides, the industry expects the government to rationalise tax structure in line with its policies for a unified tax regime across the country.