The Indian rural market is
much larger when compared
to the urban market in terms of population and number of
households, and also by way of geographic dispersal. The rural market
consists of about 100 million households with a population of around 700
million. But the rural areas are characterized by low per capita income, low
literacy, agriculture-dependent economy and low level of
industrialization. These characteristics of rural India limit its capacity for
consumption of goods and services. In recent times, however, the scene
has changed considerably due to the rapid progress achieved in
agricultural development and allied activities such as animal husbandry,
sericulture, horticulture and the encouragement given to rural and
cottage industries. This has increased the potential of marketing various
consumer goods in rural areas.
Over the years, the Government of India and various state
governments have been emphasizing development of rural areas through investments
in improving infrastructure, increasing productivity and by promoting
modern agricultural methods. They have also been formulating and
implementing schemes for employment generation. These efforts have
resulted in making India's rural economy comparatively more
vibrant and prosperous.
The `Green Revolution' has, in turn, brought about a
socioeconomic revolution in Indian villages. The average
per capita income of farmers is on the increase
and the manner in which they spend their disposable
income has also changed. The rural market is not passive. It is vibrant and
growing at a rapid pace. The villages have not only accepted the modern way
of agriculture as a business, but have also accepted modern living
style. Farmers have become choosy in their buying. Apart from food and
consumable items, they are interested in buying radios, television sets,
DVD players, two wheelers, wrist watches, cooking gas, mixies and furniture. |
