Dabur India CEO Mohit Malhotra has expressed strong support for the government’s recent goods and services tax (GST) reforms, believing they will have a positive impact on the economy. The reforms, which include the removal of differential tax treatment between branded and unbranded goods, are expected to revive sluggish consumption and create a ripple effect of benefits throughout the economy. Malhotra described the changes as a “pleasant surprise” and predicted that they will increase consumer confidence and lead to higher demand for goods and services.
The removal of differential tax treatment is seen as a significant positive, as it eliminates the “penalty” on higher quality branded products. This will allow companies to lower prices and pass on benefits directly to consumers, making products more affordable for urban consumers who have been affected by high food inflation. Malhotra noted that the reforms will not only benefit urban consumers but also strengthen the value chain, driving investment and putting more money in the hands of farmers.
The reforms are also expected to fuel spending among India’s middle class, a segment that is often overlooked! in welfare-driven policy. Malhotra believes that the reforms will lead to a “middle-class surge,” as they will increase affordability and boost consumer confidence. The Dabur chief’s remarks reflect growing optimism among consumer goods companies that tax parity and affordability will inject momentum into India’s consumption-led growth story.
Overall, the GST reforms are seen as a significant step towards boosting consumption and driving economic growth. By reducing taxes and increasing affordability, the government is hoping to stimulate demand and create a positive impact on the economy. Malhotra’s endorsement of the reforms suggests that consumer goods companies are confident that the changes will have a positive impact on their businesses and the wider economy. With the removal of differential tax treatment and the expected increase in consumer confidence, the GST reforms are likely to have a positive impact on India’s economy, driving growth and increasing prosperity for all.