Despite slowdown, consumer goods sector grew 15 percent
July 23rd, 2009 - 6:25 pm ICT by IANS ( Leave a comment )New Delhi, July 23 (IANS) Despite the economic slowdown, the country’s fast moving consumer goods (FMCG) sector grew by almost 15 percent in 2008-09, thanks to high demand for such goods in rural India, says a report released Thursday.
“At times of economic slowdown, for instance, consumers may be cutting down on durable and other capital expenditure but cannot avoid spends on daily necessities,” said the report jointly prepared by the Federation of Indian Chambers of Commerce and Industry (FICCI) and industry tracker Technopak Consultants.
The FMCG industry, currently estimated to be at Rs.120,000 crore ($25 billion), is expected to touch revenues of Rs.3.55 trillion ($74 billion) by 2018, the report added.
A major portion of the demand came from rural India, which saw higher consumption due to growing incomes from government programmes like National Rural Employment Guarantee Scheme (NREGS).
“The rural market is growing in leaps and bounds. These people (rural population) are more brand conscious than their urban counterparts,” said Shantanu Khosla, managing director of consumer goods major Procter and Gamble.
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