Highlights- Direct income incentives & focus on rural infra to help staples
- Made in India initiatives to support consumer durable cos
- Sub-segments to watch – footwear, paper and contract manufacturers
- Relatively inexpensive FMCG scrips of ITC, Jyothy Labs, Marico require closer look
Last year’s Union Budget tried to address growth challenges by improving income – through direct tax incentives, the PM-KISAN scheme and also by focusing on rural infrastructure & food processing industries and Made-in-India initiatives. Since then, consumption growth has only worsened further while the fiscal space has narrowed for a big bang stimulus. However, we believe that the sharp domestic slowdown warrants a stronger push towards increasing disposable income, especially in rural areas and focusing more on made in India initiatives in the upcoming budget.
Direct income incentives
What are the direct tax announcements anticipated?