SPURring growth in FMCG, retail and e-commerce sectors in India

The global economic outlook is improving, with recession fears in the US easing due to positive economic data. Supply chains are adjusting to geopolitical challenges, and while the IMF predicts slower global growth in FY25, the slowdown is expected to be milder than earlier estimates. India’s economy has shown exceptional resilience, with Q1 FY25 real GDP growth of 6.7%. The IMF has raised India’s FY25 GDP growth forecast to 7%, citing strong domestic demand. Inflation, a significant concern, is expected to moderate as supply chain disruptions ease and commodity prices stabilize. This, along with stable monetary policies, is likely to boost consumer confidence, driving private consumption and economic growth.

In the FMCG sector, competition from D2C brands and private labels is driving innovation through R&D focused on young and middle-income consumers. Easing inflation, improved monsoons, and rural demand revival are expected to fuel volume growth.

The retail sector is adopting omnichannel strategies and tech-driven experiential selling to meet evolving consumer preferences. Value retailers are launching new brands for price-sensitive youth in metros and smaller cities.