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FMCG

The FMCG industry in India is a significant sector, contributing around 10% to the GDP and expected to grow to USD 220 billion by 2025. Household and personal care products dominate sales, while policy support includes foreign investment incentives and production-linked schemes. However, the industry faces challenges due to a complex taxation system with multiple rates.

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FMCG

The FMCG industry in India is a significant sector, contributing around 10% to the GDP and expected to grow to USD 220 billion by 2025. Household and personal care products dominate sales, while policy support includes foreign investment incentives and production-linked schemes. However, the industry faces challenges due to a complex taxation system with multiple rates.

Uploaded by

ronakchhabria05
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© © All Rights Reserved
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FMCG

The fast-moving consumer goods (FMCG) industry or consumer packaged goods (CPG) industry
is mainly responsible for producing, distributing and marketing fast-moving consumer goods.
The FMCG industry is the fourth largest sector in the Indian economy.[1] Household and personal
care products accounts for 50% of the sales in the industry, healthcare accounts for 31-32% and
food and beverage accounts for the remaining 18-19%.[1]

DEMAND-The FMCG market in India is expected to increase at a CAGR of 14.9% to reach USS
220 billion by 2025, from USS 110 billion in 2020.
Indian packaged food market is expected to double to USS 70 billion by 2025. Rising digital
connectivity in cities and rural areas is driving
the demand for FMCG(through e-commerce portals).

GDP CONTRIBUTION - around 10%

3 Policy support
► Investment approval of up to 100% foreign equity in single brand retail and 51 % in multi-brand
retail.
► The union government’s production- linked incentive (PLI) scheme gives companies a major
opportunity to boost exports.
► The minimum capitalisation for foreign FMCG companies to invest in India is US$ 100 million.

FMCG industry is exposed to multiple tax rates (5%/ 12% / 18%) which has complicated the
taxation system.

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