Investments in rural India aiding FMCG growth: Puri

Reduction in income-tax (IT) rates and the recent lowering of goods and services tax (GST) are among the measures that have made India the most resilient and fastest-growing country in the world.

- BS REPORTER

Sanjiv Puri, chairman and managing director (CMD) at ITC, said in a fireside chat with Nivedita Mookerji at Manthan 2026 on Tuesday.

"To achieve this kind of a growth rate at a time when the whole world is going through so many challenges, is indeed remarkable and a testament to the policy interventions," Puri said at the annual thought leaders' summit hosted by Business Standard.

The overall macros are also very supportive, because the investments in public infrastructure are continuing, he said.

Puri added that digitisation is empowering the economy, inflation is benign and investments in rural India are aiding growth for the country's fast-moving consumer goods (FMCG) sector. The ITC CMD believes that since all the macros are in place, things will get better progressively.

He maintained that India is a consumption-driven economy and the FMCG sector does correlate to the progress in the economy. However, Puri believes that the basket of consumption is also shifting and, therefore, the exact correlations will evolve over time.

Talking about the GenZ consumption patterns, which are emerging for the FMCG sector, he said the consumer accounts for 46 per cent of the spends because the strength of this cohort of the population stands at 400 million in India.

"He (GenZ) is more well-informed, more focused on purpose, has very specific requirements like clean labels, health, and even indulgence. And, he is redefining them," he said.