According to India Ratings & Research, increased private consumption will lead to more balanced growth, thereby reducing the disparity between the premium and value segments.
According to the report, urban demand will also continue to increase but at a slower pace.
India Ratings said growth inequality will narrow in fiscal 2025, reflecting a slightly more broad-based growth outlook.
Rural consumption demand has increased steadily in recent years.
Backed by improving rural demand and steady urban growth, the fast-moving consumer goods (FMCG) sector in India is also projected to see revenue growth of 7-9 per cent this financial year.
According to a recent CRISIL Ratings study of 77 FMCG companies, "We expect volume growth of 6-7 per cent from rural consumers (40 per cent of total revenues) in FY2025, driven by an improved monsoon that will benefit agricultural production." "is supported by the expectation of." and an increase in the minimum support price that supports agricultural income.
According to the report, higher government spending on rural infrastructure, primarily through the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) for affordable houses, will help generate more savings in rural India, leading to their higher spending power. Will be supported.
On the other hand, according to the CRISIL report, volume growth of urban consumers will remain stable at 7-8 per cent during FY2025, supported by rising disposable incomes and continued focus on premium offerings by players, especially personal In care and home. Care section.
The food and beverages (F&B) segment is expected to grow by 8-9 per cent this financial year due to improving rural demand.
According to the report, urban demand will also continue to increase but at a slower pace.
India Ratings said growth inequality will narrow in fiscal 2025, reflecting a slightly more broad-based growth outlook.
Rural consumption demand has increased steadily in recent years.
Backed by improving rural demand and steady urban growth, the fast-moving consumer goods (FMCG) sector in India is also projected to see revenue growth of 7-9 per cent this financial year.
According to a recent CRISIL Ratings study of 77 FMCG companies, "We expect volume growth of 6-7 per cent from rural consumers (40 per cent of total revenues) in FY2025, driven by an improved monsoon that will benefit agricultural production." "is supported by the expectation of." and an increase in the minimum support price that supports agricultural income.
According to the report, higher government spending on rural infrastructure, primarily through the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) for affordable houses, will help generate more savings in rural India, leading to their higher spending power. Will be supported.
On the other hand, according to the CRISIL report, volume growth of urban consumers will remain stable at 7-8 per cent during FY2025, supported by rising disposable incomes and continued focus on premium offerings by players, especially personal In care and home. Care section.
The food and beverages (F&B) segment is expected to grow by 8-9 per cent this financial year due to improving rural demand.
