India, Jan. 16 -- Many hopes are vested in the February 1 Union budget about policies and plans to boost consumer demand for the fast-moving consumer goods (FMCG) sector, considered a bellwether for the Indian economy.

Demand for daily essentials that reflects consumer confidence and positive economic outlook has been poor for the last many quarters except in the premium end of the market. The bulk of the market has shown weak demand for consumer goods in an economy marked by slow growth in household incomes and jobs.

However, in its November survey, the National Bank for Agriculture and Rural Development (Nabard) pointed to a revival with 42.2% of rural households reporting income growth and 79.2% of village households showing increase...