Interim Union Budget: FMCG, steel and auto sectors seek sustainable growth

Green push for growth: While Corporate India is counting on the government to target larger capex outlay in the upcoming interim Budget 2024, for support higher GDP, a sustainable growth is a common focus area. Republic Business spoke to company representatives in the FMCG, automobile and manufacturing space, who expressed optimism on India’s growth story being driven by sustainability. While the steel industry envisions a sustainable path forward by incorporating eco-friendly practices and green technologies in its operations. Similarly, the FMCG sector anticipates sustainable growth through policies that support environmental responsibility and green initiatives. The automotive industry expects budgetary measures to promote sustainability, particularly in the adoption of cleaner and greener technologies. Collectively, these sectors look at the Budget to reinforce their commitment to a more sustainable and resilient future.

Green energy, e-mobility 

As India takes a bold leap towards sustainable mobility as it embarks on an ambitious journey to drive green energy solutions, industry stakeholders are optimistic that green initiatives will help witness robust growth. With a focus on reducing carbon footprint, the country aims to revolutionise the transportation sector by embracing renewable and eco-friendly alternatives, says Akshit Bansal, CEO & Founder, Statiq. 

“This pivotal shift underscores India's commitment to building a cleaner, greener future for its mobility landscape. The electric vehicle charging infrastructure and green energy segments urgently need transformative reforms to take a lead in the auto sector, specifically geared towards green and clean energy,” said Bansal. He emphasised that government’s commitment to combat pollution and climate change must continue.

“The importance of incentives for EV charging companies lies in the importance of Production-Linked Incentive (PLI) schemes tailored for EV charging companies,” Bansal said. “Financial incentives, tax reforms, and the continuation of schemes like FAME III are crucial to accelerate the growth of EV infrastructure and drive widespread EV adoption in India,”  Bansal added.

Suyash Gupta, Director General, Indian Auto LPG Coalition, highlighted the need for a collective shift towards greener fuel. Gupta said he was hopeful for government measures to encourage the adoption of alternative fuels, especially auto LPG. Stressing the potential benefits in reducing running costs and improving air quality, Gupta called for incentives to introduce LPG vehicles at affordable prices. 

Gupta suggested GST reduction on auto LPG and LPG conversion kits, along with relaxed approval norms. These measures aim to address pollution by incentivizing the conversion of petrol and diesel vehicles to auto LPG, contributing to a cleaner and more sustainable economy.

FMCG anticipates sustainable growth

The FMCG sector sets its sights on sustainable growth as it envisions a positive trajectory in the coming year. Fueled by increased demand in rural markets, favorable raw material prices, and the potential for a prosperous monsoon, the industry anticipates robust expansion. Stakeholders look forward to government policies that support agriculture, rural development, and overall business expansion, signaling a promising outlook for the FMCG sector with a strong focus on going green. 

Image credit: Unsplash 

Manish Aggarwal, Director, Bikano, Bikanervala Foods Pvt Ltd says FMCG sector anticipates robust growth in the coming year, while also focussing on agro economy. Aggarwal anticipates a sustainable growth as the FMCG industry in India is hopeful for a positive change after a considerable tough year 2023. 

Despite facing challenges in 2023, the sector expects to see strong growth next year, driven by increased demand in rural areas, favorable prices for raw materials, and the likelihood of a good monsoon, he said. “Furthermore, we strongly encourage the government to invest adequately in boosting the rural economy. By enhancing the conditions for rural jobs and increasing government spending, we can stimulate greater demand in rural areas. This effect can be amplified by directing more funds towards improving rural infrastructure and implementing Product-Linked Incentive (PLI) schemes. These measures would not only contribute to the growth of rural areas but also elevate productivity in the hinterlands” said Aggarwal. 

Steel industry vows going green 

The steel industry is gearing up for a green transformation, embracing a sustainability model in infrastructure development. With an emphasis on eco-friendly practices, the sector is poised to adopt greener technologies and processes. This move aligns with the industry's commitment to environmental responsibility and signifies a significant step toward a more sustainable and resilient future for the steel sector. Sanjay Gupta, Chairman & Managing Director, APL Apollo Steel Tubes Ltd said the steel sector expects policymakers to focus on a collective shift towards greener construction, as it aligns seamlessly with the industry's commitment towards sustainability in the form of eco-friendly products and lower-carbon-intensive manufacturing processes. 

Gupta said that he foresees positive shifts aligning with industry goals. “A potential reduction in Goods and Services Tax (GST) and export policy reforms, creating a favorable economic environment for domestic companies will help the manufacturing sector’s growth objective will set the ball rolling,” Gupta said. The vision is aligned with the ‘Atmanirbhar Bharat’ initiative, aiming for self-reliance, Gupta added.