Impact of Globalization on Rural Marketing

Abstract

More than 60 years of independence have passed but the citizens of rural India still dream for the promises on rural development to get fulfilled. India has more than 6,30,000 villages, housing two-third of its people, earning one-fourth of the national income. There are 47,000 rural hats in India which exceeds the total number of retail chain stores in the U.S. (35,000), the rural share in both FMCG and durable categories has grown beyond 50% from 25% in the 1980s.

"Rural marketing is real marketing''. The rural bazaar is booming beyond everyone's expectation. This has been primarily attributed to a spurt in the purchasing capacity of farmers now enjoying an increasing marketable surplus of farm produce.

Rural marketing in the Indian Economy has always played an influential role in the lives of people. In India, leaving out a few metropolitan cities, all the districts and industrial townships are connected with rural markets. The rural market in India is not a separate entity in itself and it is highly influenced by the sociological and behavioural factors operating in the country. The rural population is around 833 million, which is 68.83% of the total population.

The rural market in India brings in bigger revenues in the country, as the rural regions comprise of the maximum consumers in this country. The rural market in the Indian economy generates almost more than half of the country's income.

In 1991, the government of India decided to open the country's economy to the outside world, which resulted in several multinational firms entering India. After economic reforms, the environment of rural marketing is changing rapidly.