India’s retail, fast-moving consumer goods (FMCG) and e-commerce sectors are poised for significant transformation, and the economy has demonstrated remarkable resilience, with the consumer sector playing a pivotal role in its growth story, it said.

The expansion in the e-commerce market is driven by increased spending from affluent and middle-class households, said the report titled ‘SPURring growth in FMCG, retail and e-commerce sectors in India’.

The e-commerce sector benefitted from a rise in demand for convenience and a diverse range of products, from fashion to electronics. Investments from both domestic and international players further fuelled this expansion, making e-commerce a pivotal component of India’s retail landscape.

The report was launched at the 13th edition of ‘FICCI MASSMERIZE 2024’ conference in New Delhi recently.

New Indian consumers are making value-based choices of convenient, sustainable, healthy and locally-manufactured products and changing consumer preferences demand greater emphasis on innovation and digital adoption, the report said.

The government's strategy should focus on controlling inflation, enhancing credit access, implementing tax incentives, improving rural development, ensuring social security access and enhancing financial literacy, it suggested.

This growth trajectory positions India as a frontrunner in the global retail landscape, with the second-highest absolute industry turnover growth projected in the Asia Pacific region, a release from Deloitte said.

Amid growing optimism, the report highlights the need to decode a new retail code focusing on targeted reforms and policy changes to support innovation, improve infrastructure, update laws and ensure equitable development across urban and rural regions.

In addition, India’s FMCG, e-commerce and retail sectors are increasingly relying on strategic mergers and acquisitions (M&As) to drive long-term growth and competitiveness.

The report reveals that consumers are shifting towards premium, sustainable and personalised products, prompting companies to innovate and upgrade their portfolios to meet these evolving needs.

This surge in consumer demand, combined with a growing focus on sustainability, health and digital adoption, has created fertile ground for increased M&A activity.

Fibre2Fashion News Desk (DS)