Finance Minister Pranab Mukherjee’s Interim Budget is on expected lines as no big-bang policy decisions were expected today. But the UPA government has clearly announced its intent to shield the Indian economy from the global crisis, which is a welcome sign.
The finance minister has also provided greater succour to the farm sector, a move that would surely help the fast-moving consumer goods industry by giving rural demand a greater boost. With measures like an extension of interest subsidies to debt-hit farmers, an increase in plan allocation for the agriculture sector, and a three-fold jump in agriculture credit, the government has continued its focus on aam aadmi and rural development.
These steps would further empower the rural consumer who has been driving demand growth for products of everyday use. The government’s continued focus on rural development initiatives should go a long way in further fuelling demand from rural India, and will be overall positive for the FMCG industry.
