Budget measures will have moderately positive impact on FMCG sector: SBI report

Core Insights - The Union Budget 2026 is expected to have a moderately positive impact on the fast-moving consumer goods (FMCG) sector, driven by proposals aimed at supporting rural income, agricultural productivity, and employment generation [6][7] Group 1: Agricultural Initiatives - The budget announced the launch of Bharat-VISTAAR, a multilingual AI tool designed to integrate agricultural information, which is expected to enhance farm productivity and positively affect rural consumption [6] - The integrated development of 500 reservoirs and Amrit Sarovars is aimed at strengthening the fisheries sector, supporting livelihoods linked to fisheries, and improving income levels in rural areas [6][3] Group 2: Employment and Income Generation - The government proposed support for the animal husbandry sector through entrepreneurship development, including a Credit-Linked Subsidy Programme and modernization of livestock enterprises, which are expected to boost rural employment and income [4][6] - Support for high-value crops such as coconut, sandalwood, cocoa, and cashew in coastal areas, as well as agar trees in the Northeast and nuts in hilly regions, is expected to improve farm incomes across various regions [6][4] Group 3: Market Access and Distribution - The establishment of Self-Help Entrepreneur (SHE) Marts as community-owned retail outlets is expected to strengthen local distribution networks and improve market access for rural producers [5][6] Group 4: FMCG Sector Outlook - The outlook for the FMCG sector remains cautiously optimistic, with expectations of continued easing of food and commodity inflation, improving rural sentiment, and steady employment conditions supporting consumption growth [6][7]