If the FMCG sector has to grow it will have to focus on the top end of the 5 crore (50 million) consuming class which is growing rapidly. We will have to create differentiated products with a distinct premium image, says Pepsi's India head Rajiv Bakshi.
What should the government do?
The government should help India move away from the unitary production system to creating regional production centres, leveraging the agro-climatic condition and deliver productivity which is benchmarked against the best in the world.
What should the not government do?
The government should not continue with multiplicity of laws. A unified food law will prove to be the ultimate growth driver for this sector. The fiscal benefits available for the sector should be retained till it achieves critical scale.
Chamber speak
Confederation of Indian Industry
Processed food and agro-based products should be exempt from excise duty, while the difference between "branded" and "unbranded" food products should be done away with.
Federation of Indian Chambers of Commerce and Industry
100 per cent tax holiday for 10 years with the option of claiming any 10 consecutive years out of the first 15 years of business operation. Zero excise duty on farm produce and processed foods is needed.
Association of Chambers of Commerce
Multiplicity of laws applicable to this sector should be reduced and replaced by one integrated law and administrative machinery.
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