Consumer goods makers seek tax relief, rural boost

These measures are expected to revive consumption, which has been hit by high inflation

- Suneera Tandon

Consumer goods companies—those that sell items ranging from food and clothing to soaps and appliances—expect the government to announce measures to curb price rise and boost demand as it prepares to unveil the next year's budget. Measures like tax relief for the middle class, reduced import duties on key components, and increased government spending on rural development are expected to revive consumption, which has been hit by high inflation, particularly among lower-income households.

"A lot has been discussed on the moderation in urban consumption due to rising inflation, especially in food, so we anticipate this budget to address these challenges through measures which could bring some relief to consumers. We expect continued emphasis on rural upliftment, with investments towards infrastructure development, technology upgradation, strengthening of rural distribution networks and employment generation. These actions will directly and indirectly also enable new job opportunities," said Saugata Gupta, managing director and chief executive, Marico Ltd.