Union Budget 2025: FMCG industry calls for tax reforms, rural growth incentives, and quick commerce support

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Consumer & Internet

Consumer and Internet

Union budget 2025: fmcg industry calls for tax reforms, rural growth incentives, and quick commerce support

22 Jan 2025

1 min read

Shivaraj Jayakumar, Practice Leader, Consumer & Internet at Praxis Global Alliance, highlights the importance of introducing higher income tax exemptions to boost disposable incomes. “Indian economy is facing a slowdown. The Q1 and Q2 GDP data have not been encouraging, and the net GST collections have grown by 3.3% YOY. With consumption accounting for over 60 percent of India's GDP, boosting disposable income is critical to reviving demand. Relaxing the basic income tax exemption limit under the old regime from INR2.5 lakh to INR3.5 lakh could lead to higher disposable income. A 5-7% increase in disposable income for middle-income households could lead to a 6% rise in consumer spending on FMCG, capital goods and other essential goods.”

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