Question

Read the passage given below:

(1)	Fast-Moving Consumer Goods (FMCG) are products that sell quickly at relatively low cost. FMCG is the fourth-largest sector in the Indian economy. There are three main segments in the sector – food and beverages, which accounts for 19% of the sector; healthcare, which accounts for 31% of the share; and household and personal care, which accounts for the remaining 50% share. The urban segment contributes to about 55% of the revenue share, while the rural segment accounts for 45%. Rise in rural consumption will drive the FMCG market. The Indian processed food market is projected to expand to US\[\$\] 470 billion by 2025, up from US\[\$\] 263 billion in 2019-20.
(2)	The Indian FMCG industry grew by 16% in 2021, a 9-year high, despite nationwide lockdowns, supported by consumption-led growth and value expansion from higher product prices, particularly for staples. Real household spending is projected to increase 9.1% after 2021, after a decrease of 9.3% in 2020 due to the economic impact of the pandemic. Price increases across product categories will offset the impact of rising raw material prices, along with volume growth and a resurgence of demand for discretionary items.
(3)	The FMCG sector has received good investments and support from the Government in the recent past. The sector witnessed healthy FDI inflows from April 2000-March 2022. Furthermore, as per the Union Budget 2022-23, a substantial amount has been allocated to the Department of Consumer Affairs, and an increased amount has been allocated to the Department of Food and Public Distribution. In 2021-22, the Government approved the Production-Linked Incentive Scheme for the Food Processing Industry (PLISFPI) with an outlay of a larger amount to help Indian brands of food products in the international markets.
(4)	The Government's Production-Linked Incentive (PLI) Scheme gives companies a major opportunity to boost exports. The future outlook of the FMCG rural sector looks on track now. Rural consumption has increased, led by a combination of increasing income and higher aspiration levels. There is an increased demand for branded products in rural India. The growth of the organised sector in FMCG is expected to rise with an increased level of brand consciousness, augmented by the growth in modem retail.

Table. FMCG Products
1. Processed foods:	Cheese products, cereals
2. Prepared meals:	Ready-to-eat meals
3. Beverages:	Bottled water, aerated drinks, and juices
4. Baked goods:	Biscuits, bread
5. Fresh foods, frozen foods, and dry goods:	Fruits, vegetables, milk, butter, frozen food, and nuts
6. Medicines:	Aspirin, pain relievers, and over-the-counter medication that can be purchased without a prescription
7. Cleaning products:	Baking soda, washing powder
8. Cosmetics and toiletries:	Beauty products, soaps, toothpaste
9. Office supplies:	Pens, pencils

Based on your understanding of the passage, answer the questions given below:

1. Does the following statement agree with the information given in para 1? (1)
   Food and beverages segment dominates the Global FMCG market and is expected to retain its dominance.
   Select from the following:
   1. True - If the statement agrees with the information.
   2. False - If the statement contradicts the information.
   3. Not Given - If there is no information on this.
2. What do you think gives opportunities to boost exports? (1)
3. Select the option that displays the most likely reason for FMCG rural sector being on track. (1)
   1. FMCG sector has been unable to get investments from the government.
   2. PLI schemes don't reach the rural sector.
   3. Gross Merchandise Value (GMV) of the online grocery segment in India is expected to double in the next five years.
   4. There is a desire to buy branded products in the villages too.
4. Complete the sentence based on the following statement: (1)
   The Indian FMCG industry grew by 16% in 2021, a 9-year high, despite nationwide lockdowns because ______.
5. From the given pie chart, which segment of FMCG accounts for the maximum percentage of the sector? (1)
6. Complete the given sentence by selecting the most appropriate option: (1)
   The combination of increasing income and higher aspiration levels in the rural areas has led to ______.
   1. the Government taking a direct interest
   2. the demand for branded products
   3. price increases across product categories
   4. the fall of supply in urban areas
7. How is the Government trying to help Indian brands of food products in the international markets? (1)
8. Complete the given sentence by selecting the most appropriate option: (1)
   The concluding paragraph of the passage makes a clear case ______.
   1. that the rural people also want branded products
   2. that the FMCG industry will not focus on brand consciousness
   3. for the role of data analytics in the FMCG industry
   4. for the Government's role by providing incentives
9. What will be the impact of the increased level of brand consciousness? (1)
10. Based on the reading of the passage, correct the following statement: (1)
    The urban segment contributes to about 45% of the revenue share, while the rural segment accounts for 55%.

Answer 1

1. False - If the statement contradicts the information.
2. The government's Production-Linked Incentive (PLI) Scheme provides businesses with a significant chance to increase exports.
3. There is a desire to buy branded products in the villages too.
4. The Indian FMCG industry grew by 16% in 2021, a 9-year high, despite nationwide lockdowns because it was supported by consumption-led growth and value expansion from higher product prices, particularly for staples.
5. Household and Personal care segment
6. The combination of increasing income and higher aspiration levels in the rural areas has led to the demand for branded products.
7. In 2021-22, the government approved the Production-Linked Incentive Scheme for Food Processing Industry (PLISFPI) with a greater budget to assist Indian food companies in worldwide markets.
8. The concluding paragraph of the passage makes a clear case for the Government's role by providing incentives.
9. The expansion of the organised sector in FMCG is predicted to accelerate with an increase in brand consciousness, aided by the growth of modern retail.
10. The urban segment contributes to about 55% of the revenue share, while the rural segment accounts for 45%.