Fast moving consumer goods (FMCG) industry has a long history. However, the Indian FMCG industry began to take shape only during the last fifty-odd years. Todate, the Indian FMCG industry continues to suffer from a definitional dilemma. In fact, the industry is yet to crystallise in terms of definition and market size, among others.The definitional confusion that has marked the Indian FMCG industry is getting confounded. Some call it the FMCG industry, some others call it the CPG industry and some even call it the PMCG industry. The Indian FMCG industry has suffered because of this confusion.
After all, it is an industry which touches every aspect of human life, from looks to hygiene to palate. Perhaps, defining an industry whose scope is so vast is not easy.
The government too is at crossroads not knowing how and where to slot the Indian FMCG industry. And unsurprisingly, the manner in which it has treated an industry which holds tremendous promise as producer of goods that pervade everyday life has been only callous. The facts that the FMCG industry is a noteworthy employer and a major tax-payer are being ignored.
The only thing that is cheering the industry are the reforms of the nineties. Post-reforms, the industry is excited about a burgeoning rural population whose incomes are rising and which is willing to spend on goods designed to improve lifestyle. What is needed now is a change in the mindset of the mandarins. FMCG industry-friendly legislations are the needs of the hour.
It does not matter whether changes are being brought about by dawning market realities or the ongoing economic reforms. One thing is certain here: the Indian FMCG industry has a promising future to look forward to. In terms of growth potential, the Indian market is a great horse to bet on. With a little help and understanding from the government, the Indian FMCG industry can realise its true potential.
So far, it has been a chequered graph for the MNCs operating in the Indian FMCG industry. Domestic companies are only beginning to make their presence felt in the industry. It has taken tremendous consumer insight and market savviness for the FMCG players to reach where they are today. But, the journey has only begun.