Budget 2026: FMCG Sector Demands Policies for Sustained Demand Growth

• FMCG sector seeks Union Budget 2026-27 measures to boost household disposable income and stimulate demand.
• Industry experts recommend policy support, rationalized tax rates, and GST simplification to aid manufacturers.
• Subdued demand post-April 2024 due to high inflation impacted middle-class purchasing power, despite prior tax relief and GST cuts.
• Priyanka Duggal of Grant Thornton Bharat suggests tax benefits for individual taxpayers and enhanced rural infrastructure to spur consumption.
• Challenges include rising input costs, price hikes, and an inverted tax structure leading to GST credit accumulation for FMCG firms.

Why It Matters: FMCG sector urges Budget 2026 for policies to increase disposable income, simplify GST, and boost demand.