NEW DELHI: The main takeaway from the Budget proposal offering Rs 5 lakh tax rebate and higher allocation for farm / rural sectors is that it would leave more disposable income in the hands of people. This could trigger a consumption boom, reaping rich dividends for businesses that are strong in the rural belt, especially FMCG, consumer durable goods and automobile firms. FMCG players which are having a strong pan India presence reacted positively to the Budget. Shares of Dabur and Hindustan Unilever closed 1.93 per cent higher than previous day closing on the BSE.
Sunil Duggal, CEO, Dabur India said that the budget ticks all the right boxes when it comes to fuelling the rural and agrarian economy. Terming it as a “consumption first” budget, Vivek Gambhir, MD and CEO of Godrej Consumer Products said it will provide a much-needed thrust to the FMCG sector, which is just coming out of GST blues.