Rural FMCG Market

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The Rural FMCG Market of India is still unexplored and it provides tremendous growth opportunities. The loan waiver announced in the Union Budget 2008, would certainly facilitate further growth of the India agriculture sector.

Rural FMCG Market of India - Overview

The Rural FMCG Market of India is on the verge of registering substantial expansion across the country. The Indian Rural FMCG market is mostly unorganized and it is generally dominated by small time retailers. The organized FMCG market is only confined to the urban areas of India. Rural India mostly depends on agriculture, directly or indirectly for livelihood. Further, almost 70% of Indian population lives in rural India in around 6,00,000 villages.

Rural India offers tremendous growth prospects for the FMCG industry. Facilitation of better rural infrastructure like roads, telecommunication, electricity, supply chain, and transportation would propel the growth of Rural FMCG Market of India. Further, very low per capita consumption of FMCG products also provide tremendous opportunity for the growth of Rural FMCG markets in India.

The FMCG sector, which offers tremendous growth prospects are Food and beverage sector, health care and personal care. Presently, rural India accounts for 34% of total FMCG consumption, but it accounts for more than 40% consumption in major FMCG categories like as personal care, hot beverages, and fabric care.

The government of India new road map for the development of Indian agricultural sector will facilitate growth of rural FMCG industry. The Government of India's latest decision to waive-off loan (Union Budget 2008-2009) to the tune of ` 60,000 crores would help better crop production in India, which in turn would definitely help the Indian Rural FMCG market grow to new heights.

Last Updated on 3/16/2011