What will the Union Budget offer common people? FMCG sector pins hopes on relief

With just a day left for the presentation of the Union Budget, expectations are running high among common people as well as the FMCG sector, which is directly linked to everyday household consumption. A key question on everyone’s mind is whether the Budget will bring relief from rising prices and make daily essentials more affordable.

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Despite last year’s GST reforms, the FMCG sector is hopeful that the Modi government may announce additional measures to boost demand and purchasing power. Industry stakeholders are particularly looking for tax relief and visible policy announcements that could directly impact consumers’ spending capacity.

Traders argue that although the GST structure has improved, high GST rates on raw materials have prevented any significant reduction in retail prices. As a result, consumers have not felt the full benefit of tax reforms. They stress that easing income tax norms and encouraging domestic manufacturing could help stimulate demand and accelerate economic growth.

Builders and experts, however, believe that changes in GST slabs are unlikely this year. Instead, economists expect Finance Minister Nirmala Sitharaman to prioritise rural development, global market expansion, infrastructure strengthening, and technological advancement.

While rural markets have expanded post-GST reforms, rising prices of essentials—from food items to fuel and precious metals—continue to strain household budgets. There is a growing demand for measures that increase middle-class spending capacity, promote small enterprises in rural areas, empower women economically, and provide relief from inflation.

As inflation bites hard, all eyes are now on the Budget to see whether it can energise the rural economy and ease the financial burden on the middle class.

“Provisions could be made in the Union Budget to facilitate further development of rural areas, and to increase consumption and employment in the rural areas. Specific provisions may not be included in the budget for retailers. However, price control is a big responsibility of the government,” eminent financial expert Rajiv Sahoo said to OTV.