Bharat spurs growth of FMCG companies, but Urban India not far behind

Urban growth could stage a comeback by June quarter next year, say analysts; firms concur, saying growth divide could narrow in the future

At a time when urban India has been reeling under the impact of the Covid-19 pandemic, rural India has spurred the growth for fast-moving consumer goods (FMCG) companies. The September quarter results of most FMCG companies reflect this trend, with rural sales growth outstripping that in urban areas by a wide margin.

Analysts say that while the sales momentum from rural areas may last another three to six months, sales growth in urban areas could stage a comeback by next year’s June quarter as people learn to live with the coronavirus and economic activity gradually improves in the cities.

Urban areas contribute