Considering the extent of the products in the FMCG industry such as food, beverage, healthcare, cosmetics and household, the industry offers immense business to MSMEs in India. Especially, the food processing sector for which the investment required is comparatively less is the best segment to choose for small entrepreneurs with limited financial resources. Entrepreneurs interested in setting up food-related FMCG industry can setup their processing units in the government-designated agro-processing clusters, which help cut down the plant setup costs.
Apart from this, there are several other schemes such as Production-linked Incentive (PLI) Scheme, Entrepreneurship and Skill Development Programme, Pradhan Mantri Kisan SAMPADA Yojana, etc. from which entrepreneurs can avail benefits to start FMCG unit. With the growing online retail, the opportunities for small and medium scale businesses are increasing in the FMCG industry. With the advent of online retail and e-commerce, FMCG businesses are able to market and sell their products across the country without investing much in marketing activities.
As the production cost in India is less when compared with that of many western countries, Indian MSMEs have huge scope in the global market for exports.