Budget 2026: FMCG Firms To Benefit From Agri-infrastructure & Consumption Support With rural markets showing steady recovery, continued emphasis on farm incomes, agri-infrastructure and consumption support will be vital to strengthen growth at the base of the economy

Budget 2026 comes at a crucial juncture for India's consumption-led sectors, particularly FMCG and food staples, which sit at the intersection of household spending, farmer livelihoods and food security. Over the past year, policy stability and calibrated fiscal measures have helped sustain demand.

With rural markets showing steady recovery, continued emphasis on farm incomes, agri-infrastructure and consumption support will be vital to strengthen growth at the base of the economy. Specific interventions in agriculture like push for production of cocoa, fisheries and animal husbandry are poised to boost rural incomes. Simultaneously, the expansion of TReDS and improved credit access will alleviate working capital pressures for distributors and contract manufacturers, fortifying the entire FMCG ecosystem.

From an agri value-chain perspective, policy support for domestic edible oilseed cultivation, such as Mustard and Soybean, can significantly reduce India's edible oil import dependence and advance Aatmanirbhar Bharat.

"A clear and predictable policy environment will further enable the industry to scale responsibly, invest with confidence and contribute meaningfully to inclusive self-reliant growth," said Angshu Mallick, executive deputy chairman, AWL Agri Business Ltd.

"For the FMCG sector, the Viksit Bharat agenda serves as a vital catalyst by synchronizing demand and supply-side enablers," said Rajiv Kumar, vice chairman, DS Group.

The regulatory environment encourages growth and ease of doing business. The shift from penalty to fee-based compliance, together with incentives for data-driven IT strength, enables businesses to shift attention from regulatory issues to digital optimization. In addition, the simplification of customs duties and the digitalization of GST procedures will improve supply chain predictability and help with export competitiveness.

The continued emphasis on public investment is a key positive, with capital expenditure rising nearly 9 per cent to INR 12.2 lakh crore for 2026–27, underscoring the government's commitment to infrastructure-led growth. The sharper focus on Tier-II and Tier-III cities, along with the recognition of Global Capability Centres as a growth driver, is expected to broaden India's economic footprint beyond metros. For companies like Dabur, these measures will help drive deeper penetration of branded consumer products by improving access, logistics efficiency and income resilience across Bharat.

"The Union Budget 2026–27 was on expected lines as it reflects quiet strength and continuity. This is not a Budget driven by short-term populism. Instead, it places its faith in continuity, institution-building and resilience. With a sustained focus on enhancing farmer income, institution-building, infrastructure and maintaining fiscal discipline, the Budget reinforces confidence in India's medium-term growth trajectory, even as it avoids dramatic policy shifts," said Dabur India Limited CEO Mohit Malhotra.

The Budget's systematic push to strengthen India's traditional medicine ecosystem by setting up of three new All India Institutes of Ayurveda, training of caregivers in yoga and Ayurveda services, creation of integrated AYUSH-led medical hubs, and the upgradation of AYUSH pharmacies and testing laboratories mark a significant step towards mainstreaming Ayurveda through scale, standards and skills. "This aligns well with our long-standing engagement with Ayurveda and rural livelihoods, including partnerships with over 13,000 farmers cultivating medicinal plants across the country," Malhotra said, adding that while the absence of stronger near-term consumption stimulus and the increase in STT on futures and options remain areas of concern, the Budget's balanced approach strengthens the foundation for sustainable growth in an uncertain global environment.

The emphasis on MSMEs and a resilient banking sector reinforces the manufacturing ecosystem. Importantly, the renewed focus on healthcare and the AYUSH ecosystem aligns with rising consumer preference for preventive, wellness-led solutions, creating meaningful opportunities for the FMCG and healthcare sectors.

"The pragmatic, continuity-driven approach, with a sustained focus on infrastructure, manufacturing, and services, clearly underlines the government's commitment to job creation, income generation, and consumption-led demand. Overall, the budget signals stability, policy consistency, and a clear path toward inclusive and sustainable growth," Harsha Vardhan Agarwal, Vice Chairman & MD, Emami Limited.

For the FMCG and dairy sector, a stronger focus on dairy-led income diversification and allied value chains reinforces the agricultural backbone that supports essential food categories such as milk and dairy products. "By encouraging entrepreneurship and investment in dairy enterprises, the Budget creates a supportive environment for sustainable supply chains while contributing to inclusive rural growth," said Akshali Shah, executive director, Parag Milk Foods.

Union Budget 2026–27 is not designed to stimulate consumption in the short term. Instead, it focuses on shaping the operating environment for the FMCG sector through fiscal consolidation, infrastructure investment, MSME enablement, skilling, and regional growth. The impact will be gradual and uneven, driven more by improvements in supply chains, workforce readiness, and rural and non-metro demand than by direct policy support.