Consumer industry captains seek more tax cuts to support demand – The Times of India

MUMBAI: India’s consumer business leaders are seeking more tax cuts, broader measures to put money in the hands of the middle class and support consumption, which has picked up after months of sluggishness but risks being battered by external macro factors. CEOs are also pinning their hopes on the Budget to take measures to protect local industries from volatile commodity prices. “The budget can support consumption recovery by strengthening purchasing power, especially in price-sensitive urban and rural markets. At the same time, we need to allocate budget and take initiatives to improve the agri/farm sector to ensure stable input prices, which can help FMCG companies manage costs without passing them on to consumers,” said Mayank Shah, vice president at Parle Products.

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There should be a focus on increasing disposable income and supporting middle-class starters in consumer durables, a sector where consumption has been hit by unfavorable commodity costs and currency depreciation (import costs go up as the rupee weakens), says Kamal Nandi, business head and EVP at Godrej Enterprises Group’s appliances unit. “In addition, measures that help alleviate cost pressures – such as stable import duties on key raw materials and support for domestic production – will allow companies to avoid passing on the full benefit of cost inflation to consumers,” Nandi said. There are a few major FMCG categories for mass consumption, especially in home care, that are still taxed at 18% and could move to a lower rate such as 5% to support demand, says Sudhir Sitapati, MD and CEO, Godrej Consumer Products. The industry is also looking for meaningful support to manage input cost volatility, especially in categories impacted by inverted tax structures under GST that tie up working capital and increase cost pressures for manufacturers, said Prashant Peres, GM, India at Mars Snacking. “Budget 2026 should focus on tariff rationalization and accelerated infrastructure investments to strengthen momentum for broad-based growth,” said Sudhanshu Vats, MD of Pidilite Industries.