IJSRP, Volume 11, Issue 2, February 2021 Edition [ISSN 2250-3153]
FMCG sector are gaining its importance among other Indian sectors over the years and found to be the 4th largest sector in the economy. There are basically 3 major divisions in the FMCG sector – Personal care which accounts for 50% of FMCG sales, healthcare which accounts for 32% of FMCG sales & food, beverages which accounts for remaining 18% of the FMCG sales in India. Growing awareness, easier access as well as alteration in the lifestyles have been the major drivers for the consumer market. The policies as well as regulatory framework introduced by the Indian Government such as relaxation of license & grant of 51% FDI in multi-brand & 100 % in single-brand retail are some of the key growth drivers for the consumer market. The urban division which estimates for a revenue share of around 55% is considered as the largest contributor to the overall revenue generated by the Indian FMCG sector. However, over the past few years, the rural segment has grown at a faster pace as compared to urban India. Moreover, semi-urban & rural divisions of the FMCG sector are rapidly growing in the Indian economy & FMCG product account or 50% of total rural spending.