Dabur CEO hails GST overhaul as demand booster for consumers
Dabur CEO Mohit Malhotra hailed GST reforms as a surprise boost to consumption, noting tax parity on branded goods will lower prices, spur middle-class demand, benefit farmers, and strengthen the entire value chain.
ADVERTISEMENT
In a strong endorsement of the government’s latest goods and services tax (GST) reforms, Dabur India CEO Mohit Malhotra said the changes could revive sluggish consumption and create a ripple of benefits across the economy, CNBC-TV18 reported.
Calling the reforms a “pleasant surprise,” Malhotra noted that the move comes at a time when high food inflation has dented urban spending power. “This GST reform will completely resurrect consumption. The consumer confidence index will go up,” he said.
One of the biggest positives, he added, is the removal of differential tax treatment between branded and unbranded goods. From medicines to everyday food items such as parathas, the uniform GST rate eliminates what Malhotra described as a “penalty” on higher quality branded products. This, he said, will allow companies to lower prices and pass on benefits directly to consumers.
Malhotra stressed that the reforms are not just about urban affordability but also about strengthening the value chain. “Higher demand will drive investment and put more money in the hands of the farmers as well,” he said, describing the impact as a boost “from farm to fork.”
Importantly, he underlined that the reforms would fuel spending among India’s middle class—an often-overlooked segment in welfare-driven policy. “It is just not a focus on the ‘have-nots’. It’s a focus on the ‘haves’ also, so the middle-class surge will actually happen,” Malhotra said.
The Dabur chief’s remarks reflect growing optimism among consumer goods companies that tax parity and affordability could inject momentum into India’s consumption-led growth story.
