FMCG sector slows down due to lower consumption in rural market

The Rs 3-trillion fast-moving consumer goods market is facing a slowdown as lower consumption in rural market affected retail offtake and brought rural growth on a par with that in urban areas.

 Further, tough market conditions have hurt small manufacturers, who, in turn, have contributed half towards the sliding growth in the sector. A drop in India’s GDP growth, backed by lower spending by households, and concerns over a spike in inflation rate may pull the market further down.