New Delhi, Jun 26 (IANS): India’s FMCG (fast-moving consumer goods) sector is expected to post a growth rate of 7-9 per cent in 2024 on the back of government initiatives to stimulate consumption and create more jobs, according to a report.

"Looking ahead, the FMCG sector in India is poised for sustained growth, with forecasts indicating a 7 to 9 per cent expansion in 2024," a report from ICICI Lombard General Insurance said.

The FMCG industry now has a burgeoning economic footprint, which exceeds Rs 9.1 trillion and has a key role in driving India's economic growth and employment generation, the report states.

The online sales channel for FMCG is also increasing and has been valued at Rs 1.7 trillion. Segments such as D2C reflect a rapid digital transformation and evolving consumer purchase behaviour.

"Such digitalisation trends underscored the industry's adaptability to changing market dynamics and its proactive approach towards catering to digitally savvy consumers," the report states.

The FMCG industry was struggling after the pandemic and the rural sector was having successive degrowth for some quarters.

However, the industry navigated through showcasing resilience and adaptability amidst evolving consumer trends and witnessed a notable upswing in volume and value growth in the second half of 2023.

The third quarter of 2023 witnessed an impressive 8.6 per cent volume growth nationwide, with rural markets contributing a significant 6.4 per cent growth rate, signalling a favourable consumption environment, the report said.

Key governmental initiatives such as the Gati Shakti and Amrit Kaal Vision 2047 played instrumental roles in fortifying the FMCG sector's foundation and fostering long-term growth.

Based on these factors, "the corporate risk index for the FMCG sector decreased from 68 to 66," the report added.