Theme: RURAL MARKETS IN INDIA 

Sub Theme:  Contribution and Perspective Role of I.T. 

PAPER 

INTRODUCTION: 

A large number of studies have shown that even today approximately 70% of Indian Population lives in Rural Areas. Today, Rural Development is essential for the development of the Indian Economy. Indian Government has realized the role of the rural development and the contribution of I.T. in the development of Rural Markets. A large number of projects are introduced in the rural area with many upcoming projects in pipeline; which are likely to be introduced by the Government in the short span of time. Rural Literacy is ranked at the topmost position of priority. Trends indicate that rural markets are coming up in big way and growing twice as faster as urban markets. According to a study by NCAER (National Council for Applied Economic Research), the number of middle and high-income households in rural India is expected to grow from 80 Million to 111 Million by the end of year 2007 as compared to Urban India that is nearby 59 Million.  

The Rural Market of India is showing an impressive growth largely due to changing lifestyle patterns, better communication network and rapidly changing demand structure of consumers of rural area. With the changing patterns of Rural Market, the role of I.T. has increased from providing only the Networks to set-up the basis of updated technological programs in the rural area. It is seen that the people living in the rural area have strong purchasing power and have more openness for new technology as compared to the past. Evidence of the increase in purchasing power can be drawn from the statement of Mr. D. Shivakumar (Business Head – Personal Product Division, Hindustan Unilever Limited) who said that the money available for spending on the FMCG by Rural India is 63,500 Cr., which is much more as compared to Urban India that spends the amount of approximately 49,500 Cr.  

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