Investor Perceptions of Regulatory Changes and Their Impact on Investment Decisions in the Indian FMCG Sector

Author

Dr. Md. Mokhtar Alam, Barkha Kumari


Abstract

 The Indian FMCG sector, ranked fourth in the national economy with a market value of approximately USD 110 billion in 2022 (IBEF, 2023), has been subject to a dense sequence of regulatory interventions over the past decade — including GST unification in 2017, expanded FSSAI enforcement, revised FDI ceilings, and tightened SEBI disclosure norms. Despite this policy density, empirical research on how investors perceive these changes and how such perceptions influence portfolio decisions remains sparse. This study addresses that gap through a quantitative, cross-sectional survey of 350 individual and institutional investors. Three null hypotheses were tested using multiple regression, one-way ANOVA, and Pearson correlation. Results show that regulatory perceptions significantly and positively affect investment decisions (R² = .582, p < .001); that investor demographics — especially experience, income, and age — moderate regulatory perception (p < .05 across all three variables); and that perceived regulatory stability is strongly associated with preference for FMCG equities (r = .671, p < .001). GST rationalization, FSSAI compliance, and SEBI disclosure requirements emerged as the dominant regulatory drivers of investor confidence. The study concludes with targeted recommendations for policymakers and investors.



Keywords

Regulatory changes, FMCG sector, investor perception, investment decisions, GST, FSSAI, SEBI, behavioural finance, India



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