Despite slowdown, consumer goods sector grew 15 percent

Friday, 24 July 2009, 01:59 Hrs
Printer Print Email Email
New Delhi: 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 120,000 crore ($25 billion), is expected to touch revenues of 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.
Source: IANS
SPOTLIGHT
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..