Whalesbook
The push for fiscal stimulus from India's consumer sector captains is intensifying as they eye the upcoming Budget 2026. With consumption showing signs of revival after a prolonged slowdown, industry leaders are calling for targeted tax reductions and fiscal measures to inject purchasing power into the hands of the middle class, a critical segment for demand sustainability. Companies are also highlighting the need for policies to buffer against volatile commodity prices and currency depreciation, which threaten to derail the nascent recovery.
Budget Expectations for Demand Revival
Mayank Shah, vice-president at Parle Products, stated that the Budget can support consumption recovery by strengthening purchasing power, particularly in urban and rural markets. He also suggested allocating resources to improve the agri/farm sector to ensure steady input prices, allowing fast-moving consumer goods (FMCG) companies to manage costs without passing them onto consumers.
Kamal Nandi, business head and EVP at the appliances business of Godrej Enterprises Group, emphasized increasing disposable incomes and supporting first-time buyers of consumer durables. This segment has been impacted by adverse commodity costs and currency depreciation. Nandi added that stable import duties on essential raw materials and support for domestic manufacturing would help companies absorb cost pressures.
Tax Relief and Cost Management
Sudhir Sitapati, MD & CEO at Godrej Consumer Products, believes certain mass-consumption FMCG categories, especially in home care, currently taxed at 18%, could benefit from a move to a lower slab such as 5% to stimulate demand. Prashant Peres, GM, India at Mars Snacking, noted that the industry requires meaningful support to manage input-cost volatility. He pointed to inverted duty structures under GST that lock up working capital and add to manufacturing costs.
Infrastructure and Tariff Rationalisation
Looking beyond immediate consumption, Sudhanshu Vats, MD, Pidilite Industries, advocated for tariff rationalisation and accelerated infrastructure investments in Budget 2026 to fortify broad-based growth momentum. These broader economic measures are seen as essential for long-term stability and expansion of the consumer market.