The Indian rural market, having a huge population base, offers an immense opportunity to explore. The increasing affluence, supported by favorable monsoons and good agricultural output, is giving a good boost to the Indian rural economy, which is transforming into a large customer base for the corporates. Though rural India was ignored earlier, now it is no longer a segment that is largely poor, illiterate and innocent. As per available figures, 75% of the rural population is engaged in agriculture and they contribute approximately half of the total rural income, whereas, only 25% of the rural population is engaged in the non-farming sector and they contribute the other half of the total real income.
These figures reflect that the monsoon no longer influences the buying habits of the rural population. To explore more attractive markets, multinationals are targeting India's rural market. Some of the organizations which have already made their presence felt in the rural market are Hindustan Unilever Ltd. (HUL), Coca-Cola, LG Electronics, Britannia, HDFC Standard Life Insurance, Philips and telecom companies like Reliance, Tata Indicom and Bharat Sanchar Nigam Limited (BSNL). |