Budget Expectations 2026: FMCG Sector Pins Hopes For Consumption Push, Eco-Friendly Packaging Incentives

Budget Expectations: The fast-moving consumer goods (FMCG) industry is seeking measures that will boost manufacturing, tourism and hospitality industry, revive consumption and a favourable regulatory environment from the upcoming Union Budget 2026-27.

Industry experts said that favourable measures to enhance connectivity, strengthen ease-of-doing-business reforms, and introduce targeted initiatives to boost rural incomes and consumption would play a crucial role in driving the growth of the FMCG industry.

"We expect continued emphasis on industrial corridors, enhanced connectivity, and further ease-of-doing-business reforms to attract global investments and integrate the Indian industry deeper into global supply chains. Rationalisation of GST slabs, especially incentives for sustainable packaging and eco-friendly packaging, will not only reduce costs for the beverage industry but also accelerate our transition toward a circular economy," stated Paritosh Ladhani - Joint Managing Director of both SLMG Beverages and Sincere Developers.

Budget 2026 is also expected to prioritise necessities before shifting focus to broader economic development to support consumption growth

"By prioritising sectors like healthcare, education, infrastructure and poverty reduction, the Government will ensure that money reaches the areas where the people who need it most. After the basic necessities, the Budget will place Trade Policy at the heart of Economic Development to restrict widening trade deficit and diversifying export destinations," stated Dr. Rajeev Singh, Director General, Indian Chamber of Commerce.

Budget Expectations 2026: GST Rationalisation, Eco-Friendly Packaging Incentives
Industry stakeholders are also expecting some relief related to GST rationalisation, incentives linked to packaging, etc.

"Rationalisation of GST slabs, especially incentives for sustainable packaging and eco-friendly packaging, will not only reduce costs for the beverage industry but also accelerate our transition toward a circular economy. Targeted measures to boost rural incomes and consumption will unleash enormous demand potential across tier-2, tier-3 cities and rural markets, the real growth engine of tomorrow," Paritosh Ladhani.

"Clarity in compliance processes, support for MSMEs and startups, and continued focus on ease-of-doing-business would go a long way in unlocking category potential. As consumer preferences evolve towards premium, quality-led products, a stable and progressive regulatory environment shall help responsible brands invest confidently in innovation and employment," Atul Kumar Singh, Co - founder & Managing Director of Lone Wolf.

In addition to this, the industry stakeholders expect that the Union Budget 2026-27 will bring higher allocations for infrastructure-linked to labour and water-intensive categories. The FMCG sector is also likely to see a significant benefit from the Goods and Services Tax (GST) rationalisation.