Business Standard

Budget 2018: FMCG, farm sectors to lean on consumption to boost growth

Could push revenue growth at consumer and farm sector-related firms but gains might be tempered by higher inflation and borrowing cost

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Krishna KantViveat Susan Pinto Mumbai
On the face, there is little direct gain for corporate India in the Union Budget provisions for FY18-19. However, consumer and farm sector-related companies are likely to gain by way of higher demand for their products in the coming quarters.

The central government plans to raise expenditure in the agricultural sector and rural areas through various proposals. These could result in more disposable income with rural folk, boosting consumption in these areas. It would benefit makers of consumer goods such as Hindustan Unilever (HUL), ITC, Dabur, Godrej Consumer, Havells, Bajaj Electricals, Hero MotoCorp, TVS Motor and Bajaj Auto.

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