New Delhi, July 8 (Inditop.com) Consumption of products like toiletries, toothpaste, cosmetics, packaged food and light bulbs, commonly known as fast moving consumer goods (FMCGs), will grow 10-12 annually and nearly double revenues to $43 billion by 2013, says a new report.
This segment of industry, which clearly defied economic slowdown, managed to top $25 billion in revenues last year, said the report prepared by the Federation of Indian Chambers of Commerce and Industry (FICCI) and industry tracker Technopak Consultants.
The report said the turnover will even top $47 billion by 2013, if the government is able to meet its April 2010 deadline of implementing a uniform goods and services tax, apart from liberalising the foreign direct investment regime further.
“The implementation of goods and services tax will replace the multiple indirect taxes currently levied on fast moving consumer goods,” said FICCI secretary general Amit Mitra, while releasing the report here.
“This sector contributes $6.5 billion annually through direct and indirect taxes to the exchequer. It certainly will get a boost once the uniform goods and services tax is implemented,” added Technopak chairman Arvind Singhal.
According to the report, rural India accounted for almost 50 percent of sales.
“The rural market is growing in leaps and bounds. These people (rural population) are more brand conscious than their urban counterparts,” said Shantanu Khosla, managing director of consumer goods major Procter and Gamble.
The report said trademark and copyrights laws be enforced and archaic labour laws be amended.
