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FMCG and Rural Growth
Why is it in the news
- The rural growth has fallen below that of urban for the fast-moving consumer goods (FMCG) industry.
- This has happened for the first time in 7 years.
More in the news
- The FMCG sector is considered as a barometer of overall economic growth and consumption due to the range and reach of products across price points.
- Data:
(1) Rural market grew at 5% in the quarter ended September 30, lower than the urban market’s growth rate of 8%.
(2) For the rural market had grew at 20% in the corresponding quarter last year.
(3) Rural India contributes 36% to the overall FMCG sales.
(4) The Rural India has historically been growing around 300 to 500 basis points faster than urban.
(5) FMCG industry grew at 7.3% in the September 2019 quarter- a significant fall from the 16.2% in the September 2018 quarter.
(6) The drop in GDP is driven by the weakening of household spending which forms the majority share of the GDP for the country.
Source
The Hindu