New Delhi: Rural India demand has increased for the fast moving consumer goods, two-wheelers, passenger cars and retail faster than the urban areas, boosting revenue growth of the firms of the key sectors even as the global meltdown deepens, an industry study said.
Rising rural income, mainly from healthy agriculture growth, combined with better penetration by companies into the village market, has created demand for some key sectors, the Assocham study on ‘The Rise of Rural India´ stated.
It said the FMCG sector is growing fast and the expansion is expected to be 40% in villages. However, the chamber did not give any time period of the expected growth.
It expects FMCG market expansion in urban areas at a lesser pace of 25%.
The study has listed firms like ITC, which it said, has recorded higher sales of products in rural market than in cities.
The size of FMCG industry is estimated at Rs2,00,000 crore. Of this, Rs1,71,189 crore is the size of the domestic market.
The country’s overall industrial production has been showing negative trend since December under the impact of global demand slump.