Unleashing the potential of rural India!

With the country’s economy progressing at a good rate, the India rural markets have started gaining a lot of popularity as they have become more promising, Experts believe that are a lot of factors that are creating investment opportunities in the rural India lately.

The increase in procurement prices [the government sets the minimum support price -- MSP -- for many farm products] has contributed to a rise in rural demand. A series of good harvests on the back of several good monsoons boosted rural employment in agricultural and allied activities.
Policy measures like the waiver of agricultural loans to the tune of US$13.9 billion and the NREGS have really escalated the stated of rural economy.

With the increased number of banking facilities in rural India, the purchasing power is also expected to grow in the coming years, bringing about a change in the buying capacity. Rural India is evolving as a market for durable goods, telecom as a lot of companies have started offering products keeping in mind the needs of the rural lifestyle.

If you plan to venture out into the rural India, you would have to consider these options in terms of product offering:
1.The affordability of the product which you offer in rural markets is very important to be considered as the income level in rural India differs from that of urban areas.
2.Size and the design of your product should be such that it suits the rural lifestyle and their durability requirements.
3.Convenience orientation is again one of the aspects that you would have to consider as the rural consumer is very skeptical about accepting new technology.
4.Long term benefit: If you offer a product with a greater shelf life and flexible usage that would perfectly match the need of rural consumers.


Source: WSJ