Fuelled by growing fascination of youth towards the fast moving consumer goods (FMCG) and rising income levels, the FMCG market in rural and semi-urban parts is likely to grow at a faster pace in the next three years while the urban areas may register a drop in growth."The rural market contributes 52% to the total FMCG market in India, which is expected to grow by 10% by 2010, driven by 180 million young population," an Assocham statement said.The semi-urban market is expected to grow by 6% in the next three years and contribute 21% to the country's total market, up from 19%.In chamber's view, in urban India the market size is estimated at 29% which is likely to come down to 22% by 2010 as consumers are becoming more health conscious and shift away towards adoption of organic products.As per industry estimates, the total size of domestic FMCG market in volume terms is $15 billion, of which $7.9 billion come from rural areas and $2.85 billion from semi-urban markets while metros and other cities contribute $4.2 billion."The government's permission to 100% FDI in FMCG will further fuel the growth in rural and semi-urban India," V N Dhoot, president, Assocham said.
