A Conceptual Analysis of the Paradigm Shift towards Imported FMCG Products in India and its Economic Implications, Incorporating the Moderating Role of Consumer Ethnocentrism

The Indian fast-moving consumer goods sector, a cornerstone of the national economy, has undergone a marked transition in consumer preferences from indigenous to imported products—a development indicative of deeper changes in cultural aspirations and consumption patterns. This conceptual study investigates the paradigm shift towards imported FMCG products in India, assessing its prospective ramifications for GDP contributions and the robustness of the domestic market. Drawing on established literature, the analysis integrates Consumer Ethnocentrism Theory, Global Consumer Culture Theory, Signaling Theory, and facets of Conspicuous Consumption to develop a theoretical framework elucidating how aspirational motives, digital globalization, and perceptions of superior quality influence purchasing decisions in an emerging market such as India. The paper further examines how consumer ethnocentrism may moderate this shift by reinforcing ties to national identity and ethical obligations. It concludes that while imported FMCG preference reflects evolving consumer psychology and global identity formation, unchecked dependence on foreign brands may weaken domestic industry competitiveness, requiring strategic policy interventions and domestic brand revitalization.