New Delhi: Implementation of the proposed Goods and Services Tax (GST) and opening up of FDI will fuel the growth of FMCG sector in India by taking the total size of industry to Rs4.5 lakh crore ($95 billion) by 2018, according to a Ficci-Technopak report.
FMCG sector has grown consistently during the last three to four years and has reached the level of Rs1.25 lakh crore ($25 billion) sales in 2008, the report said.
Even without the FDI and GST, the industry is poised to grow at 10-12% for the next 10 years to reach Rs2.06 lakh crore by 2013 and Rs3.55 lakh crore by 2018, it pointed out.
“Demand from the rural areas would be instrumental in fueling the growth of FMCG companies in India,” Ficci general secretary Amit Mitra told reporters while releasing the report.
Opening up of FDI and implementation of GST in India will further boost the sector, which may take the size of the industry to 4.5 lakh crore by 2018, Mitra said.
The study also urges the government to enforce trade mark and copyright laws to drastically reduce counterfeits, and protect the rights of the consumers and FMCG companies.
Speaking about the potential of the sector, Mitra said, it is among the largest employers in India and livelihood of 13 million people associated with 8 million ‘kirana´ stores are directly depended on it.