Overall this year's budget can be termed as realistic but not game-changing in view of the various compulsions faced by the Government. However, in a  day and age when we are talking about the India growth story being well-poised with growing disposable income , this year's budget  will not accelerate or kickstart the growth agenda. 

Though the FMCG sector is the least cyclical and volatile of all the sectors because it has items of daily consumption, the indirect tax increase puts tremendous pressure on the consumer's wallet and we will see titration of consumption on the discretionary or the top end items of consumption.

This combined with fiscal deficit and the expected volatility on crude and exchange rates will certainly drive inflation to a certain extent. The reduction in personal income tax will provide some cheer but may not be enough.

It is also a wait and watch time for the FMCG industry especially on the twin issues of GST and FDI in retail. 

Both these measures will help drive consumption growth and help various players across the value chain.

An alignment on GST and DTC and a comprehensive roadmap for some other reform measures will certainly positively accelerate sentiment and growth during the financial year. At least the current move towards GST thinking through service tax - excise alignment is welcome.

In sum this is a little bit of a status quo budget for the common man with some fears of inflation and not much hope for an accelerated growth. Only a benign political and global environment could be the only positive upside in the coming quarters.

 (The writer is CEO, Consumer Products, Marico Ltd)

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