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FMCG hopes the Budget will stoke consumption (more disposable income, targeted tax reliefs), finish GST rationalisation, and ease input/packaging costs as the next leg of recovery.
Executives call for: simpler GST on essentials and private labels, inverted-duty fixes, and credit access for small retailers/franchise partners; packaging players push sustainability incentives so “safe & sustainable” formats scale; brands want stable duties on imported inputs and clarity on rules to avoid launch delays.
What brands and suppliers are pushing for:
- cleaner GST architecture with fixes to inverted duty so input credits don’t get stuck;
- faster ITC refunds/clear SLAs to ease cash cycles for MSME vendors and distributors;
- stable import duties on key inputs/packaging to reduce pricing whiplash; and
- targeted nudges that lift disposable income and rural throughput so volume recovery sustains into FY27.
Parallel coverage lists food processing incentives, PLI-style support for goods, and rationalised duties in hygiene/tobacco/alcohol as direct FMCG levers.
Last year’s slab tweaks lifted take-home pay, and the Economic Survey 2026 pegs steady growth, but companies say a demand nudge plus cost predictability would turn volume greenshoots into a broad uptick through FY27.
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