Budget 2025: FMCG, Logistics, and Coworking Sectors Eye Key Reforms

29 Jan 2025 , 12:43 PM

The Union Budget for FY26 will be presented on February 1, 2025, marking Finance Minister Nirmala Sitharaman’s eighth budget. The budget comes at a critical time, as the Indian economy faces slower GDP growth, rising inflation, and recent stock market volatility.

The FMCG sector is expected to be a key focus area, with industry leaders looking for policy support to drive growth, particularly in rural markets.

The logistics industry is also hoping for reforms that address global supply chain challenges and help the FMCG sector expand. Jitendra Srivastava, CEO of Triton Logistics & Maritime, emphasized the need for:

• Trade facilitation measures to streamline operations.
• Reduction in duties on essential raw materials.
• Incentives for smart supply chain technology adoption to cut rising costs.

Infrastructure investment is crucial, especially in warehousing and transport networks. The planned ₹3 trillion railway funding for 2025-26 and expansion of high-speed freight corridors could significantly improve logistics efficiency.

With FMCG demand projected to grow at a CAGR of 14.9% by 2025, these initiatives are necessary to meet both global and domestic supply chain needs while driving long-term growth.

Sustainability remains a priority, with calls for incentives on eco-friendly packaging and production processes to align with global standards and improve India’s supply chain resilience.

The coworking sector is also looking for policy support.

• Lower GST rates for small businesses.
• Infrastructure incentives to boost coworking spaces in Tier 2 and Tier 3 cities.
• Improved tax benefits to make coworking more affordable for startups and drive job creation.
• Single-window clearances and faster regulatory approvals to support coworking expansion beyond metro cities.

As the budget approaches, stakeholders across industries are hoping for pro-business policies that encourage growth, enhance competitiveness, and drive economic recovery.