Budget Must Address Sluggish Consumption Growth: Godrej & Boyce CEO

Verma said, "I hope that the upcoming budget continues to prioritise these areas while also introducing policies that promote innovation, PLIs, and sustainable practices"

Anil G Verma, Executive Director & CEO of Godrej & Boyce, emphasised on Thursday that in the forthcoming Union Budget, the government should consider initiatives such as reviewing personal income tax slabs. This adjustment would potentially stimulate private consumption, thereby catalysing private investment as well.

Union Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2024 on July 23. This will be the first budget presentation under the Modi 3.0 government, and industry leaders are eying to see what all 

Verma also expressed confidence that the government will further develop the strong foundation set by the interim budget. This budget prioritised enhancing infrastructure development, maintaining fiscal responsibility, and placing a progressive emphasis on empowering women, youth, farmers, and the underprivileged through skill development, welfare initiatives, and financial support. "The important area that needs to be addressed now, amongst others, is the continued lower-than-expected growth in private consumption," Verma said in a statement.

Stressing the role of private consumption in driving private investment, he remarked, "Therefore, I am hopeful that the government of India will take steps that boost consumption through a slew of measures that could include optimising GST rates, reviewing of personal income tax slabs and reassessment of the interest rates to provide EMI relief to the large masses whose purchases of assets such as homes and consumer durables are through loans." 

He added that these initiatives would not only bolster the consumer durables sector but also stimulate related industries through heightened capacity utilisation, thereby accelerating the influx of private investments.

Looking ahead, he further said, "I hope that the upcoming budget continues to prioritise these areas while also introducing policies that promote innovation, production-linked incentives (PLIs), and sustainable practices. These measures are crucial for driving holistic economic growth and ensuring balanced and inclusive development for India."