FMCG sector usher in structural reforms towards $ 5 trillion economy; Digital Kirana stores to further boost consumption

Minister of State, Ministry for Consumer Affairs, Food & Public Distribution, Mr Ashwini Kumar Choubey said that India’s economy is well on its path to recovery and the FMCG sector is a key player in India’s $5 Trillion dream.

Addressing the Valedictory Session at FICCI MASSMERIZE 2021- 11th Edition of FICCI’s Annual Conference on Retail, FMCG and E-commerce, the minister said with the growing impact of digitization and e-commerce, buyers are more inclined towards technology. “Digital connectivity today is not limited to cities but is also available in rural areas of India,” said Mr. Choubey.

Emphasising the reforms led by the government he said, “We have recently implemented National Single Window System for investors and business. This will go a long way in giving shape to schemes like Make in India, Startup India. Entrepreneurs will benefit greatly.”

Mr Amitabh Kant, Chief Executive Officer, NITI Aayog said in an economy where close to 55% of the GDP comes from consumption expenditure, the FMCG sector emerges as one of the largest sectors of the economy.

“India’s Kirana store makes a huge segment of our economy, especially in the FMCG sector where the rural economies matter as much as the urban economy,” he said urging the larger firms to work with such Kirana stores to ensure digital onboarding and handholding.

Kant emphasized that enabling Kirana stores to connect to the digital economy can have the impact of boosting consumption in both rural and urban India. “Resilience,” he said, “is the new metric for accessing performance and preparedness for the future. From now on govt and businesses will be judged on how resilient and sustainable their practices are.” 

He further mentioned that the pandemic has led to developing alternative delivery channels for customers and as more and more people are preferring online platforms, such delivery models will be the key to the future. Building sustainable business practices across supply chains are now imperative given the perils of climate change. “It is only when the private sector and govt join hands we will be able to create a sustainable future,” added Kant.

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