GST gains lift demand; industry flags agriculture and FTAs as next levers
NEW DELHI — As the FMCG sector looks to the Union Budget 2026–27, industry leaders are upbeat on demand momentum following last year’s GST rationalisation and are urging sharper policy focus on agriculture and exports to sustain long-term growth.
Praveen Jaipuriar, CEO of CCL Products (India) Ltd, said the GST changes implemented in 2025 have already delivered a tangible consumption boost by improving affordability and simplifying taxation across key consumer categories, including coffee and dairy.
“The GST rationalisation undertaken in 2025 was a welcome step and has provided a meaningful boost to consumption by improving affordability and simplifying taxation,” Jaipuriar said. “Such measures have helped reinforce demand momentum and build confidence across the FMCG value chain.”
Looking ahead, he said Budget 2026–27 will be closely watched for continued support to agriculture, particularly initiatives that raise farm productivity and resilience. Targeted measures to expand production acreage and improve output per hectare could be especially impactful for agri-linked segments such as coffee, he added.
“Measures that strengthen farm productivity and resilience not only support farmer incomes but also contribute to greater supply stability and long-term growth across the FMCG value chain,” Jaipuriar said.
On the external front, Jaipuriar pointed to Free Trade Agreements as a critical opportunity to enhance India’s export competitiveness. Citing Vietnam as an example of how extensive trade agreements can unlock export advantages, he said a sharper FTA push could help Indian FMCG and coffee manufacturers expand globally.
“A stronger focus on FTAs can help Indian FMCG and coffee manufacturers expand their global footprint, improve price competitiveness, and access new markets,” he said.
With consumption recovering and policy levers identified, the FMCG sector is positioning Budget 2026–27 as a pivot for sustaining growth at home while scaling exports abroad.
