New Delhi, Feb 1 (PTI) Fast-moving consumer goods (FMCG) companies on Sunday hailed the Union Budget for FY27, saying its thrust on public investment, manufacturing scale-up, MSME support, agriculture
and fiscal consolidation will strengthen domestic supply chains and boost consumption-led growth.
Top executives said the budget reflects continuity and resilience, while avoiding short-term populism. They noted that measures such as MAT credit relief, higher public capex, focus on Tier II and III cities, and support for traditional medicine and AYUSH will create sustained demand tailwinds across rural and semi-urban markets.
Industry leaders also highlighted that interventions in agriculture, logistics, credit access and industrial clusters will improve productivity, lower costs and enhance competitiveness.
"The Union Budget 2026–27 lays out India's growth strategy with a clear focus on sustained public investment, manufacturing scale-up, support to MSMEs, employment generation and fiscal consolidation, a decisive shift towards people-first, consumption-led growth," said Marico MD and CEO Saugata Gupta
Moreover, continued emphasis on enhancing agricultural incomes through higher productivity and value addition is structurally positive for rural and semi-urban demand, creating sustained tailwinds for consumption.
"At the same time, the thrust on strengthening MSMEs and legacy industrial clusters, supported by improved access to credit and deeper formalisation, will further improve domestic supply chains, particularly across Tier II and Tier III markets," he said.
Godrej Consumer Products Ltd (GCPL) Managing Director and CEO Sudhir Sitapati said the government has also allowed companies to use MAT (Minimum Alternate Tax) under the new income tax scheme.
"MAT credit set-off is being allowed up to 25 per cent of the tax liability under the new tax regime. This move improves cash flows and makes the new tax regime smoother for companies with accumulated credits, freeing up capital for reinvestment into growth and consumption-led categories," he said.
Dabur India CEO Mohit Malhotra said the Union Budget is on expected lines as it reflects strength and continuity.
"This is not a budget driven by short-term populism. Instead, it places its faith in continuity, institution-building and resilience. With a sustained focus on enhancing farmer income, institution-building, infrastructure and maintaining fiscal discipline, the Budget reinforces confidence in India's medium-term growth trajectory, even as it avoids dramatic policy shifts.
A sharper focus on Tier-2 and Tier-3 cities, along with the recognition of global capability centres as a growth driver, is expected to broaden India's economic footprint beyond metros.
"For companies like Dabur, these measures will help drive deeper penetration of branded consumer products by improving access, logistics efficiency and income resilience across Bharat," he said.
He also lauded the government push to strengthen India's traditional medicine ecosystem.
Emami Vice Chairman and MD Harsha Vardhan Agarwal said the budget is pragmatic with a sustained focus on infrastructure, manufacturing, and services, clearly underlining the government's commitment to job creation, income generation, and consumption-led demand.
"The emphasis on MSMEs and a resilient banking sector reinforces the manufacturing ecosystem. Importantly, the renewed focus on healthcare and the AYUSH ecosystem aligns with rising consumer preference for preventive, wellness-led solutions, creating meaningful opportunities for the FMCG and healthcare sectors," he said.
Pidilite Industries MD Sudhanshu Vats said that continued focus of the government in the Union Budget 2026–27 on domestic manufacturing across chemicals, electronics and capital goods strengthens supply-chain resilience and supports India's ambition to be a globally competitive production hub.
"With public capex at Rs 12.2 lakh crore, demand across housing, construction and infrastructure-linked industries will remain robust, directly benefiting the building materials and adhesives ecosystem," he said.
DS Group Vice Chairman Rajiv Kumar said the Union budget strikes a balance between fiscal stability and growth, positioning India for a resilient economic future.
"For the FMCG sector, the Viksit Bharat agenda serves as a vital catalyst by synchronising demand and supply-side enablers. Specific interventions in agriculture, like push for production of cocoa, fisheries and animal husbandry are poised to boost rural incomes," he said.
Simultaneously, the expansion of TReDS (Trade Receivables Discounting System) and improved credit access will alleviate working capital pressures for distributors and contract manufacturers, fortifying the entire FMCG ecosystem, Kumar added.
Britannia CFO N Venkataraman said that the government is overhauling the tax framework, effective April 26.
"By simplifying compliance, decriminalising several provisions, replacing penalties with fees, and rationalising TDS and TCS rates, the government advances its ease-of-doing-business agenda. The result is a tax environment that is fairer, more transparent, and less prone to litigation," he said.
RSH Global Chairman Sunil Agarwal said that the budget shows clear confidence in India's manufacturing and MSME sector. The focus on reviving industrial clusters, supporting growing SMEs through a dedicated fund, and strengthening supply chains will help businesses become more resilient and competitive. PTI KRH HVA
