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FAST MOVING CONSUMER GOODS RETAIL MARKET, GROWTH PROSPECT, MARKET OVERVIEW AND FOOD INFLATION IN INDIAN MARKET ? AN OVERVIEW

RALLABANDI SRINIVASU

The fast-moving consumer goods (FMCG) sector is an important contributor to India’s GDP. Fast moving consumer goods (FMCGs) constitute a large part of consumers’ budget in all countries. This study is aimed at to shed light on competitive conditions prevailing in the FMCGs retail trade sector. This study also focused on the analysis of competitive within the sector, and draws lessons for competition policy. FMCG Industry is characterized by a well established distribution network, low penetration levels, low operating cost, lower per capita consumption and intense competition between the organized and unorganized segments. India’s FMCG sector creates employment for more than three million people in downstream activities. It is currently growing at double-digit rate and is expected to maintain a high growth rate. Indian buyers were a bit conservative partly due to lesser disposable income and partly due to fewer competitive and more variety of products. Food inflation could restrict consumers’ demand and pricing flexibility for FMCG while lowering consumers’ purchasing power that diverts purchases away from certain FMCG