Union Budget 2023-24: Finance Minister Nirmala Sitharaman will soon present the annual Union Budget for the financial year 2023-24. Different sectors of the economy are looking forward to different initiatives and expect some measures to be announced. The personal care industry is no different. It has a wish list and suggestions for the overall development of the economy as well as some demands for emerging direct-to-customer (D2C) brands.
Industry experts have urged the government to support D2C brands with their own manufacturing units with specialized manufacturing zones. Some urged for encouraging research and development (R&D) in the beauty and skin care sector.
They feel that boosting domestic demand is going to be important for the overall economy as there is an economic slowdown globally due to various reasons.
Manish Chowdhary, Co-Founder, WOW Skin Science, said, “There is an economic slowdown globally and the fear of a recession is upon us due to the war-induced energy and food crisis, high inflation rates and distress in key markets like the US. , China and the Eurozone. The market is in recovery mode even after the pandemic. While we are facing some heat due to the global economic situation, but according to the IMF India And some other Asian markets are more resilient.”
“As per some market reports and our view, this budget is expected to see increased spending by the government on building the rural base – focusing on rural infrastructure, agriculture schemes and job schemes for rural areas,” Chowdhury said. There should be expected results of recovery of regions and improvement of their economic condition.
Even though India is seen as having a stronger market profile than many globally, it cannot remain isolated and is expected to face the impending effects of the global slowdown. Trade with global markets will experience a slowdown – which means the government should focus on strengthening markets within the country by improving employment conditions and boosting domestic demand.
“The government has to focus on development within the country amidst the global recession. This can be done by creating a positive growth environment for small businesses and start-ups by offering better tax breaks and a better taxation system, promoting investment opportunities and improving the financial ecosystem,” urged Chowdhury.
KV Hariharan, Senior Vice President, FP&A, Strategic Planning & Data Analytics, Amway also underlined the increased consumption within the country.
“Over the past few years, we have seen a number of economic reforms announced by the government that support economic growth. However, given the current scenario, with fears of a recession and inflationary trends, Budget 2023 should focus on sustaining growth, supported by increased consumption and a favorable investment climate in the country,” Hariharan said. .
He highlighted that as an FMCG Direct Selling (DS) company, DS channel has huge potential and can effectively partner with the government on nutrition and health skill development.
Hariharan urged, “We expect Budget 2023 to have health policies that will support the country’s shift to preventive healthcare, make healthcare more accessible as people continue to prioritize health and wellness, Which is the core of most of the buying decisions of the consumers.”
If the government can consider lower taxes, they would be helping a large population move towards welfare by making it affordable.
“We hope that the government will rationalize the GST on health care supplements from 18% to 5% in the upcoming budget. This would be a welcome move, Hariharan said, considering the holistic health system combined with nutraceuticals and health supplements provide significant economic value and will play a significant role in contributing to reviving the Indian economy.
Harini Sivakumar, Founder and CEO, Earth Rhythms stressed the need for research and development. Shivakumar said, “When the country starts investing in its own R&D processes for the beauty and skin care sector, for example, it will essentially own the formulations, have the option of patenting them and process I will reap many benefits.”
He added that there are very few Indian D2C brands that have their own manufacturing unit and completely own the manufacturing process.
“I believe that in order to reduce these offshore dependencies, the government should introduce provisions that support such entrepreneurs or businesses who are building not only their own domestic brand, but also the country’s We are also building and developing the entire manufacturing capacity. Subsidized loans would be the way to go in this regard,” urged Shivakumar.
The government should also support D2C brands with their own manufacturing units along with special manufacturing zones. The present manufacturing areas which are within the cities are either very congested and populated or the unit size is limited. The ones that are outside the city are too far away, so not possible.
Deepak Gupta, Co-Founder & COO, Bombay Shaving Company also shed light on the global headwinds and indicators of the slowdown and suggested
I am encouraged by the importance the FM has given to MSMEs, start-ups and local businesses in FY2012. But given the global headwinds and signs of recession, the year ahead could be challenging. I hope the government doubles down on growth and local manufacturing while encouraging ‘Proudly Indian’ brands like Bombay Shaving Company with better tax structures and schemes for imports, exports and large scale supply chain. Better returns for investors and tax exemption on ESOPs is something that would also be nice to see.
Given that local job creation (has been) is and will be a key focus area – such measures will energize and fuel the country’s entrepreneurial spirit, creating more value and opportunities for the country. I am very optimistic about the ‘India Growth Story’ and expect FM enabled companies to play a key role in achieving it.’
Additionally, on the consumption demand linked to the growth trajectory of the industry, experts are of the view that the Union Budget should consider a reduction in income tax as it will have a positive impact on disposable income, support the salaried class, and increase the spending power of consumers. Will strengthen the power of This will provide much-needed relief to the middle class, which was hit the most by the COVID-19 pandemic, which was followed by a hike in prices.
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