Key initiatives in budget 2024: Empowering the poor and boosting FMCG purchasing power

Direct Benefit Transfer, PM-SVANidhi, PM-JANMAN Yojana, PM-Vishwakarma Yojana, and PM Mudra Yojana are some of the key initiatives announced in Budget 2024 aimed at empowering the poor and increasing their purchasing power.

The Indian government's budget for 2024 has placed a strong emphasis on empowering the poor and increasing their purchasing power. This is expected to have a positive impact on the FMCG sector, as more people will have more money to spend on consumer goods.

Supporting the backbone of India: Farmers
The budget recognizes the crucial role farmers play in ensuring food security for the nation and the world. Several initiatives have been announced to support them:

• PM-KISAN SAMMAN Yojana: This scheme provides direct financial assistance to 11.8 crore farmers, including marginal and small farmers, helping them meet their financial needs and invest in their farms.
• PM Fasal Bima Yojana: This scheme provides crop insurance to 4 crore farmers, mitigating risks associated with unpredictable weather and protecting their incomes.
• Electronic National Agriculture Market (eNAM): This platform integrates 1361 mandis across the country, facilitating seamless online trading and better price discovery for farmers. Over 1.8 crore farmers have already benefited from eNAM, with a trading volume of Rs 3 lakh crore.

Some of the key initiatives announced in the budget that are aimed at achieving this include:

• Direct Benefit Transfer (DBT): The government has announced that it will transfer Rs 34 lakh crore directly to the bank accounts of beneficiaries of various welfare schemes using PM-Jan Dhan accounts. This is expected to save the government Rs 2.7 lakh crore by eliminating leakages that were prevalent earlier. These savings will then be used to provide more funds for 'Garib Kalyan' (welfare of the poor).
• PM-SVANidhi: This scheme provides credit assistance to street vendors. So far, 78 lakh street vendors have received loans under the scheme, and 2.3 lakh of them have received credit for the third time. This is expected to help them expand their businesses and improve their incomes.
• PM-JANMAN Yojana: This scheme reaches out to particularly vulnerable tribal groups who have remained outside the realm of development so far. It provides them with financial assistance, healthcare, and education. This is expected to improve their quality of life and give them a chance to participate in the economy.
• PM-Vishwakarma Yojana: This scheme provides end-to-end support to artisans and craftspeople engaged in 18 trades. It provides them with training, credit, and marketing assistance. This is expected to help them improve their skills, increase their production, and earn more income.
• PM Mudra Yojana: This scheme has sanctioned 43 crore loans aggregating to Rs 22.5 lakh crore for the entrepreneurial aspirations of youth. Besides that, Fund of Funds, Start-Up India, and Start-Up Credit Guarantee schemes are assisting youth. This is expected to create more jobs and boost the economy.

Policy focus on inclusive growth and higher productivity
Budget 2024 outlines a vision for inclusive, balanced, and higher growth in the agriculture sector. This will be achieved through:

• Farmer-centric policies: The government is committed to implementing policies that address the specific needs and challenges faced by farmers.
• Income support: Schemes like PM-KISAN and other initiatives provide much-needed financial assistance to farmers, improving their overall well-being.
• Risk coverage: Price and insurance support programs help farmers mitigate risks associated with market fluctuations and natural disasters.
• Promoting technologies and innovations: The budget encourages the adoption of new technologies and innovative practices in agriculture through startup support and other initiatives.

Combined Impact on the FMCG Sector
These are just a few of the many initiatives announced in Budget 2024 that are aimed at empowering the poor and increasing their purchasing power. These initiatives are expected to have a significant impact on the FMCG sector, as more people will have more money to spend on consumer goods. This is good news for FMCG companies, as it means that they can expect to see increased sales and profits in the coming years.

It is important to note that the impact of these initiatives will take some time to be felt. However, there is no doubt that they have the potential to make a real difference in the lives of the poor and to boost the Indian economy.

In addition to the initiatives mentioned above, the government has also announced several other measures that are expected to benefit the FMCG sector.

These include:

• A reduction in the basic customs duty on certain raw materials used by the FMCG industry.
• An increase in the allocation of funds for infrastructure development, which will improve the supply chain for FMCG products.
• A focus on skilling and training, which will help to create a more qualified workforce for the FMCG industry.

These measures are all positive for the FMCG sector and are expected to help it grow in the coming years.

Disclaimer: The article is for informational purposes only and not an investment advice.