FMCG boost expected from middle class and rural India
Increased purchasing power both among the middle class and some rural segments of the population in India is expected to boost demand for so-called fast moving consumer goods (FMCG) including cosmetics, shampoos and soaps, according to the heads of companies active in the sector.
Increased purchasing power both among the middle class and some rural segments of the population in India is expected to boost demand for so-called fast moving consumer goods (FMCG) including cosmetics, shampoos and soaps, according to the heads of companies active in the sector.
Dalip Sehgal, md of Godrej Consumer Products, said the country's 350 million middle income consumers already contributed between 40% and 45% to FMCG sales. The anticipated goods and services tax is expected to increase post-tax salaries by about 5%, while Amit Burman, chairman of Dabur India, says that higher government spending on the agricultural sector will fuel growth in demand for consumer products in rural India. The unknown factor at present is the level at which the new tax is to be introduced.