Are Brighter Times Ahead for India’s FMCG Industry?
Five years after being entangled in an economic tsunami, the global economy remains fragile. Factors like the collapse of the residential subprime mortgage market in the U.S., the Eurozone crisis and recent anxiety over the U.S. Federal shutdown have plagued markets worldwide, leaving investors desperate for sustained relief.
Despite the widespread effects of the Great Recession, India’s economy was resilient during the first half of the five-year meltdown, thanks to strong fundamentals and a healthy consumption appetite. In fact, the Indian economy boasted a 9 percent boost in GDP during its 2007-2011 fiscal years.
Then the Tides Turned
While the Indian economy boasted a 9 percent boost in GDP during its 2007-2011 fiscal years, the last two years have been a different story. In fact, India has been staring down the barrel of a severe economic crunch. The impact of the macroeconomic stress on the Indian consumer has been significant. But the horizon appears brighter, which should provide relief for India’s FMCG market.