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Chart of The Day: India’s kiranawalas extend lead over modern retail

The good times are continuing for India’s kirana traders who are the backbone of the FMCG industry’s distribution network. However, their dominance has been challenged by the onset of modern trade (physical retail chains such as supermarkets, hypermarkets and convenience stores) and e-commerce. High inflation made it worse in recent years, as pack sizes fell and also because rural demand waned. We have been tracking the evolving trend in kirana or traditional trade’s share of FMCG sales, which fell in...

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