Union Budget 2025-26: Key Strategies for Growth in Agriculture, FMCG, and Rice Milling by Ayush Gupta, India Business Head, KRBL Ltd

"The Union Budget 2025-26 presents a pivotal opportunity to address key challenges and stimulate growth across sectors integral to India’s economy, including agriculture, rice milling, and FMCG. Indicators in the FMCG sector remain muted, with softening urban consumption and slower growth in rural areas. Providing tax benefits and relief to individual taxpayers can boost disposable income, spurring consumer spending and revitalizing demand—an approach that aligns with industry recommendations for fostering economic activity.

Simultaneously, targeted incentives for modernizing rice mills with advanced, energy-efficient technologies can enhance productivity, reduce wastage, and improve output quality, directly supporting India’s agricultural backbone. Infrastructure development to leverage by-products like rice husk for ethanol production aligns with the nation’s energy goals, creating synergies between agriculture and renewable energy sectors while unlocking new revenue streams for stakeholders.

Simplifying the GST structure, particularly merging the 12% and 18% slabs, and providing better access to financing through interest subvention schemes, will ease compliance, reduce operational costs, and enhance profitability for businesses. Moreover, promoting sustainable farming practices and supporting eco-friendly techniques can address the growing global demand for sustainably sourced products, positioning India to double organic exports to $1 billion by FY26 and solidify its standing in the $147 billion global organic market.”

“We hope this budget lays the groundwork for revitalizing demand, modernizing agriculture, strengthening rural livelihoods, and enabling sectors like FMCG and rice milling to play transformative roles in India’s economic growth and sustainability goals,” he added.