PM Modi's 'Swadeshi' call can give a real thrust to the country: Dabur CEO Mohit Malhotra

Reforms Reloaded Summit

Dabur CEO Mohit Malhotra said Prime Minister Narendra Modi's urge to use 'Swadeshi' products can act as a real thrust to the country. Speaking at Network18 Reforms Reloaded 2025 summit in Delhi, the chief executive of the FMCG major said the company expects to see demand rise by up to 600 basis points after the GST rate cuts.

The rise in demand will have a trickle-down effect on investments, he added. "We will have a 70-crore consumer base by 2030 from 50 crore today. This total impact would be Rs 17,000-20,000 for a Rs 5 lakh earning household," he said.

"Because of the GST rate cuts, the sentiment is going to improve, because of which the demand will improve, because of which investments are going to improve, because of which employment is going to improve. Indian economy is going to improve," he quipped.

Malhotra said government has bridged the gap between branded and unbranded products by bringing rates down from 12 percent. "We have to also see profits retained in India and not just investments coming to India," he said.

He explained how GST reforms can give a boost to Swadeshi. "A local chawanprash in the market fell under the 5 percent GST rate. A branded one fell under 12 percent tax slab. With the GST reforms, this gap has been bridged and now all fall under the 5 percent bracket. This will give a major boost to the Swadeshi production in India," he said.

The GST rate cuts will boost the Swadeshi companies who produce here, sell here, pocket the profits here and generate employment here, unlike companies that produce under the garb of 'Make in India' but shift the royalties overseas, he said.

Also read: Reforms Reloaded Live Updates

Speaking at the same panel discussion, CII President Rajiv Memani however disagreed. He said 'Swadeshi' means creating value in India.  The company's parentage, or where it comes from, doesn't matter, he added.