The Union Budget 2025 provides income tax benefits ensuring more disposable income. Besides, there are proposals announced that provide support to farmers, rural women and rural youth. These measures augur well for the FMCG companies as they will spur mass consumption. Mission for Aatmanirbharta in pulses, Makhana Board in Bihar, National Mission on High Yielding Seeds augur well for food processing companies like snack makers. The establishment of National Institute of Food Technology, Entrepreneurship & Management in Bihar would support food processing companies in the Eastern region.
Agriculture has been considered the first engine of growth in this Budget. The ‘Prime Minister Dhan-Dhaanya Krishi Yojana will be rolled out in partnership with states. This programme is likely to help 1.7 crore farmers. Enhanced credit through Kisan Credit Cards and a comprehensive programme for vegetables and fruits support farmers provides support to farmers and can help improve agri sourcing for companies.
The BSE FMCG Index gained 2.9% on Saturday. The stocks of Hindustan Unilever gained 1.5%, ITC gained 3.3%, Nestle India 0.5%, Godrej Consumer Products 5.5%, Tata Consumer Products 4.4% and Britannia Industries gained 1.6%.
