The Union Budget 2025 has been well-received by leaders in the FMCG sector, with particular praise for reforms aimed at boosting consumer spending, supporting inclusive growth, and enhancing manufacturing capabilities. Sunil Agarwal, Co-founder and Chairman of Joy Personal Care (RSH Global), highlighted how the budget’s strategic initiatives will drive demand and foster long-term growth in the beauty and personal care industry.
“We welcome the government’s budget for its strategic focus on economic growth through increased consumer spending power. The proposed income tax reforms are poised to enhance disposable income, driving demand across the FMCG sector, including beauty and personal care,” Agarwal stated. The budget’s announcement of raising the income tax exemption limit to ₹12 lakh is expected to leave more money in the hands of consumers, stimulating consumption across sectors.
Agarwal emphasized that the budget’s inclusive development initiatives—targeting disadvantaged groups, youth, farmers, and women—will further strengthen purchasing power, contributing to sustained market demand. He noted that initiatives to boost farm productivity, manufacturing, and exports, such as the national mission for high-yield crops and subsidized credit for farmers, will help fortify supply chains and optimize input costs, ensuring stable growth for the FMCG sector.
In addition to consumer-focused reforms, Agarwal praised the government’s efforts to create a more business-friendly environment. “Taxation reforms, including potential corporate tax reductions and streamlined tax procedures, will foster a more competitive and business-friendly landscape,” he said. These measures are expected to reduce compliance burdens and encourage investment in the sector.
The budget’s focus on digital infrastructure, skill development, and MSME promotion was also highlighted as key to enabling sustained consumption and economic growth. Agarwal pointed to the National Manufacturing Mission as a transformative initiative that will incentivize manufacturing activities, enhance production capabilities, and promote innovation. “The introduction of the National Manufacturing Mission reinforces this vision by improving the global competitiveness of Indian manufacturing—a significant advantage for home-grown brands,” he added.
Overall, Agarwal expressed optimism that the Union Budget 2025 will not only strengthen the FMCG sector but also position Indian brands for greater success in both domestic and international markets. The combined focus on consumer empowerment, supply chain optimization, and manufacturing incentives creates a robust framework for sustained growth in the years ahead.
