Budget 2024: Here's how the govt has given a boost to the rural economy

The interim budget presented by the finance minister today has brought some cheer to the country’s fast moving consumers goods (FMCG) majors - who were juggling between poor consumer demand and high inflation for quite some time. Leading players in the market now say that measures such as supporting farm income and increased public spending on infrastructure will help mitigate some of these challenges.

According to Mohit Malhotra, Chief Executive Officer of Dabur India, while not immediately pandering to populist impulses, the budget allocates significantly to infrastructure development and provides incentives for rural housing, agriculture, and fisheries. “The strategic decisions to enhance incentives for rural populace, particularly women, are expected to have a lasting positive impact, enhancing sentiments over the long term. The extension of healthcare coverage under Ayushman Bharat to ASHA and Anganwadi workers, and expansion of the 'Lakhpati Didi' scheme's target to 3 crore women are big positives this year, and will go a long way in empowering rural women and enhancing the quality of life in rural India, thereby ensuring sustained demand for branded consumer goods,” he says.

“The sharp focus on the welfare of farmers, setting up of integrated aqua parks, support to dairy farmers, together with the far-sighted schemes for agriculture and rural development, housing, women empowerment, youth and marginal segments, will trigger a virtuous cycle of productivity, incomes, consumption, investment and livelihoods,” says Sanjiv Puri, Chairman & MD, ITC.

“The focus on enhancing connectivity and infrastructure also bodes well for India Inc including FMCG sector. Moreover, the emphasis on upskilling and the significant rise in women in the workforce signify a holistic approach to fostering an inclusive and dynamic economy, setting an optimistic tone for the years ahead,” says Aasif Malbari, CFO, Godrej Consumer Products.

According to Angshu Mallick, MD & CEO of edible oil major Adani Wilmar, the widespread adoption of Nano-DAP across all farming regions is a commendable innovation, empowering farmers and aligning our practices with environmental harmony, reflecting a conscientious approach within the FMCG sector. “Moreover, the launch of the 'Atmanirbhar Oilseeds Abhiyaan' marks a pivotal step towards achieving self-sufficiency in oilseed production, showcasing our commitment to advancing self-reliance and sustainable practices within the FMCG landscape. We have been investing in oilseed crushing facility over the years. At present, Adani Wilmar possesses a crushing capacity of 1.20 million metric tons in Soya whereas in mustard seeds crushing, with existing and forthcoming facilities it’ll amount to 0.70 million metric tons,” Mallick explains.

Also Read: Interim Budget 2024: Govt focuses on Make in India, PLI allocation surges for several manufacturing sectors