FMCG sector to expand at 9 pc in FY20, growth to improve in FY21: Report
Progressive Grocer|February 2020
The Rs. 4 lakh crore FMCG sector will close fiscal 2020 with a 9 percent growth, down 4 percentage points and a jump in rural buying will lift the same to 11 percent in fiscal 2021, according to a Crisil Ratings report.
FMCG sector to expand at 9 pc in FY20, growth to improve in FY21: Report

The recovery in growth for the fast-moving consumer goods (FMCG) sector will begin playing out from March-April 2020 riding on a jump in farm incomes, says the report. The estimate comes amid reports of a sharp fall in overall consumption, with one media report also claiming that there has been de-growth in the activity for the first time in four decades. This dip in consumption is one of the most important factors dragging down the GDP growth. Better storage levels in reservoirs, which are over 40 percent higher than the year-ago period due to better rains, an 8 percent increase in winter crop output and better visibility for the upcoming seasons will lift the rural consumption, it said.

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