Billed as the worst sales in India in two years, chief executive officers (CEOs) of retail and fast-moving consumer goods (FMCG) companies say that the government In India will have to hit the ground running if it wishes to contain the damage.
“Rural incomes have to rise, so that the consumption slowdown in these markets is addressed,” says Kishore Biyani, founder and chief executive officer, Future Group. “A revival package for rural areas will help and with a stable government in power, I think, a lot can happen,” he says.
Suresh Narayanan, chairman and managing director, Nestle India, says, “India has consistently posted stable growth in the past few years with low inflation. However, with inflationary pressures now growing and the forecast of a below-normal monsoon, farm incomes will be affected. Giving an impetus to rural households is the need of the hour.”
American research firm Nielsen has already lowered its growth forecast for the 2019 calendar year by 200 basis points for the domestic consumer goods market, saying sentiment remains weak.