Fiscal Stimulus For Ural India Could Drive Consumerism
Businessworld|August 3, 2019

Recently appointed Chairman of Dabur, Amit Burman, the youngest to occupy the post, is credited with conceiving and nurturing the Real Juice brand and making it a category leader. In a free-wheeling conversation with BW Businessworld’s Jyotsna Sharma, Burman talks about his as well as Dabur’s journey, the challenges they faced along the way, besides a whole gamut of issues includingrship, Indian economy and its challenges, among other things.

Jyotsna Sharma

What are your views on the state of the economy?

The economy is going through a slowdown for sure, and you see that across industries like automobiles, durables, consumer goods, etc. According to syndicated data, the overall growth rates have softened for the industry on the whole. In fact, they are at a two-year low for the industry. And this, they say, is being felt across urban and rural markets. Progressively, the growth rates for the FMCG industry have hit a low of around 7.5 per cent from a high of nearly 19 per cent in November last year. Volume growths for the FMCG industry are even lower at nearly 4 per cent. While rural India is witnessing an agrarian crisis, urban consumers seem to be holding on to their purse-strings. This has been further aggravated by the overall liquidity crunch in the market.

However, I don’t think this is structural and the situation should likely improve from the second half of the fiscal with the festive season setting in. If the government doles out some fiscal stimulus for rural India, that would put additional money in the pockets of rural consumers and further drive consumerism for branded consumer staples.

What, according to you, does India need to do to become a $5 trillion economy?

It’s an achievable target, but suitable measures need to be taken well in time. While some external factors like geopolitical climate, crude oil prices and rupee value are not in the hands of the government, there are other measures that they can take to drive the economy on the high growth path. Higher spending on infrastructure development will be a key area for the government to focus on. Besides, they will also have to work on boosting private investment, higher disinvestment and pushing forward key structural reforms, along with a focus on creating jobs. The manufacturing sector too needs to revive quickly to drive growth, boost export and generate employment.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM BUSINESSWORLDView All

“All products will be upgraded to BS-VI technology”

HYUNDAI MOTOR India’s MD & CEO S. S. Kim shares with BW Businessworld’s Ashish Sinha and Siddharth Shankar the company’s India strategy in 2020 and beyond. Excerpts:

1 min read
Businessworld
23 November 2019

‘An effective leader is one who has a service attitude'

Swami Mukundananda went to IIT Delhi and IIM Calcutta, before he turned a seeker. In a chat with BW Businessworld Editor-in-chief Annurag Batra, the yoga and spiritual guru talks about his book, 7 Mindsets for Success, Happiness and Fulfilment, leadership, entrepreneurial challenges and, of course, inner peace

9 mins read
Businessworld
23 November 2019

WORKING TOWARDS SMARTER CITIES

Thought leaders and innovators of smart cities engage to explore better solutions

8 mins read
Businessworld
23 November 2019

Promoting Innovation, Creative Thinking

SAP LABS INDIA IS AT THE CENTER of today’s technology revolution, developing innovations that not only help its customers run at the best, but also improve the lives of people everywhere.

1 min read
Businessworld
23 November 2019

Winning the War for Talent

THE IT & IT-BPM INDUSTRY in India has over the years tried to pivot the image of being a cost-effective service provider to one of building cutting edge products.

4 mins read
Businessworld
23 November 2019

Fostering Work-life Balance

LAUNCHED IN 2011, Happiest Minds provides customer experience, business efficiency actionable insights through an integrated set of disruptive technologies: big data analytics, internet of things, mobility, cloud, security, unified communications, etc.

1 min read
Businessworld
23 November 2019

Best-in-class Talent Processes

INTUIT INDIA’S MISSION OF ‘POWERING prosperity around the world’ is an inspiration for organizations whose vision is technology and innovation.

1 min read
Businessworld
23 November 2019

40 UNDER 40 SUMMIT: FUTURE GAME CHANGERS

Entrepreneurs and industry discuss the changing needs of various industries and what works on the ground By Mrudul Sharma

5 mins read
Businessworld
23 November 2019

How Sony Is Re-Investing Itself In India

Is Sony India reaching for the moon when it re-positions itself solely as a premium market player in India, which is its fourth-largest market globally?

10 mins read
Businessworld
23 November 2019

Will Auto Gloom End In 2020?

A lot is riding on the early recovery of Indian automobile sector which is launching diverse models at catchy price points to fight declining sales By Ashish Sinha & Siddharth Shankar

9 mins read
Businessworld
23 November 2019