New Delhi: Finance Minister Nirmala Sitharaman decreased income tax and increased standard deduction rebate in the Union Budget 2024-25. This move by the government is likely to boost FMCG sector growth.
According to marketing research firm Kantar Worldpanel, “The FMCG sector is expected to register 6.1 per cent yearly growth in FY 2024-25 in the rural market, which was 4.4 per cent last year. However, the FMCG sector’s growth in the urban market remained flat at 4.2 per cent in this fiscal.”
According to the report released by Kantar Worldpanel, volumes in rural market could equal those in the urban market, which is higher at present.
The rural FMCG market is more valuable to the industry than before and is generating almost half the volume and value for the sector.
Kantar Worldpanel also said that the growth in the FMCG market in rural India is not led by consumption but by population.
The firm added, “People are turning to premium products. This includes products like food spreads and dressings, face scrubs/peels/masks, body washes, hair conditioning serums, muesli, and Korean noodles.”
The report further said that people are also rapidly adopting e-commerce and quick commerce.
In the Budget presented on Tuesday, FM Sitharaman reduced personal income tax to 10 per cent on income of up to Rs 10 lakh per year under the new tax regime, while the standard deduction has been increased from Rs 50,000 per year to Rs 75,000 per year.
–IANS