The FMCG Sector in India has witnessed a range of recent developments. Tax deductions on various items, rise in the penetration levels and per capita consumption are some of the major developments in FMCG. The FMCG Sector in India is the fourth largest sector in the Indian economy. As per the reports of the 2005-06 financial years, the market size of the sector was registered as USD 13.1 billion. The FMCG Sector in India involves a strict competition between the organized and unorganized sectors of consumer durables. India offers an abundance of raw materials (Some product categories such as jams, toothpaste, skin care products, hair care products, etc have experienced a low per capital consumption as per a report presented in 2006.), low-priced labor costs, and also has a presence across the entire value chain.The Prime Minister said that India is the only country in the world which offers the unique combination of democracy, demography, and demand. He said the new Government was taking initiatives for skill development to ensure that skilled manpower was available for manufacturing. He also referred to the Digital India mission, saying this would ensure that Government processes remained in tune with corporate processes.