FMCG makers like ITC, Godrej Consumer and Emami have hailed the Union budget 2019-20 and believe it will push their slowing rural sales as the government has provided thrust on infrastructure development, MSME sector and job creation.
Industry leaders said government's investment in the infrastructure schemes as Pradhan Mantri Gram Sadak Yojana will benefit farmers and help to boost rural demand.
While, investments to improve infrastructure and amenities like complete rural electrification by 2022, and water security, will also be beneficial.
"Overall, this is a 'rural first' budget. It is marginally positive for FMCG; proactive efforts to drive demand and increase consumption, should help improve growth in the long term," Godrej Consumer Products Ltd Managing Director and CEO Vivek Gambhir.
ITC Chairman and Managing Director Sanjiv Puri said the government has provided thrust on infrastructure development, MSME sector and job creation.
"The Budget proposal indeed gives a strong directional impetus to the agricultural sector by promoting 'agri-preneurs' and value addition in agri-produce whilst addressing the critical need for water security. The move to enable sustainable agriculture through zero budget farming and promotion of agri-based renewable energy is indeed laudable," said Puri
However, he also added, Finance Minister Nirmala Sitharaman, who has announced a series of long-term initiatives "would help improve overall consumer sentiments in the hinterland and put more disposable income in the pockets of the urban consuming class."
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