ITC Eyes Festive Boom Post-GST Rate Cut

Leading FMCG player ITC is banking on a surge in festive season demand following a reduction in GST rates, which is expected to have a multiplier effect on the packaged food sector's volumes and the broader economy. This optimistic outlook was shared by Hemant Malik, the Executive Director and Divisional Chief Executive of ITC's Foods Business Division, during his address at World Food India 2025.

However, Malik acknowledged the ongoing challenge of inflation affecting some products, particularly due to rising edible oil prices. Despite these hurdles, he expressed optimism about urban demand growth spurred by the GST reduction and the government's production-linked incentives for the food processing sector.

ITC, known for brands like Aashirvaad and Bingo!, has already passed on the GST benefits to consumers. Malik emphasized the importance of consumer sentiment in driving spending, which can boost both the economy and employment. The company remains engaged with government initiatives and continues to invest significantly in the food processing sector, optimistic about India's growth potential in packaged foods.

(With inputs from agencies.)