GST transition sparks short-term FMCG demand dip in Sep quarter: Report

FMCG volumes eased to 5.4% in Q2 as GST transition caused a brief slowdown, though rural markets continued to outpace urban areas and overall sector growth stayed strong at 12.9%

Transition to the new Goods and Services Tax (GST) regime in the September quarter led to a slight moderation in volumes in the Indian fast-moving consumer goods (FMCG) sector to 5.4 per cent during the period, market researcher NielsenIQ India stated in a new report.

 

Meanwhile, the sector recorded overall growth of 12.9 per cent, driven by sustained rural demand and a steady urban recovery. However, rural markets continued to grow ahead of urban for the seventh consecutive quarter.

 

Rural India has recorded a 7.7 per cent increase compared to 3.7 per cent in urban areas. However, the gap is