New Delhi, July 29: 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 sectorâs 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, âPeople 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.
Meanwhile, Indiaâs unique Digital Public Infrastructure (DPI), which has transformed millions of lives, is now being replicated in several countries, the Centre has informed. Aadhaar, which is the worldâs largest digital identity programme that provides biometric and demographic-based unique digital identity, has generated 138.04 crore IDs to date.
More than 30 crore users have been facilitated and 675 crore issued documents made available by DigiLocker, according to Jitin Prasada, Minister of State for Electronic and IT.
The minister said in the Rajya Sabha that more than 1,388 crore financial transactions were processed through unified payments interface (UPI) in June alone.
Moreover, India has signed MoUs on cooperation in the field of sharing successful digital solutions implemented at population scale with 10 countries.