RURAL MARKETING

Indian Rural Market

 Rural income distribution

 Poverty in rural India

 Nature and characteristics of rural India

 Rural income distribution

 58% disposable income

 Annual household income 2002
 56630 (R)
 102963 (U)
Consumer class Annual income 1995-96 % 2006-07 %

Very rich Above 215000 0.3 0.9

Consuming class 45001- 215000 13.5 25.0

Climbers 22001- 45000 31.6 49.0

Aspirants 16001-22000 31.2 14.0

destitute 16000 & below 23.2 11.1

 Per capita income of rural and urban
areas
12000

10000

8000

6000 Urban
Rural
4000

2000

0
1989-90 1994-95 2001-02
Magnitude of poverty in rural india
 Poverty line – per capita expenditure needed to get the
required per capita per day calorie intake.2400 (R) 2100
(R)
 32.5 crore population is BPL.
 Monthly expenditure – 49.09 (R ) 56.64 (U)
 Poverty line – monthly expenditure - 2005
 1840 (R)
 2795 (U)
 60 % of rural population is above PL
 Orissa – 48%, Punjab – 6 %
 Poverty alleviation programme
 Gram Sadak Yojna
 PURA
 NREGA
 IRDP
 JRY – NREP and RLEGP
 Supplementary opportunities for income generation
 To create social assets
 Rural consumption
 Rural market – 123000 Crore
 Expenditure comparison
a)Education 4.5 times more in urban
b)Health – twice than rural
c)Rental value of house – 5 times
FACTS
50 % BSNL mobile connections
VPT in 85 % villages
41 million Kisan credit cards
42 million Rurals avail banking services
6.6 million investments in savings
 Agriculture , rural income and
consumption
 Workforce in farming and agriculture
 82% in 1971
 73% in 1982
 53% in 1999
 Rural income higher in less agriculturally
dependent states
 Non farm employment – driver for rural
growth.
Sector Share Rural income Share Urban income

1995-96 2004-2005 1995-96 2004-05

Agriculture 43 32 4.4 3.7

Industry 19 22 42 35

service 38 47 53 61
 Literacy in rural India
 Increased from 36 to 59 %
 No Formal education - 51 % (R) ,16 % (U)
 Secondary education – 55% (U) 15 % (R)
 Technical education – 26 % U 2.3 % R
 Income – 38.5 % U 4 % R
 Electricity in rural india
 Electricity in rural households
 Punj ab - 90%
 Goa - 90 %
 Jharkhand - 25 %
 Bihar - 10.3 %
 Haryana, Gujraat, Karnataka, Tamilnadu, Maharashtra,
kerala, Madhya- pradesh – 70 %
 Power durations and power fluctuations – challenge
for marketers
 LPG operated power geysers.
Development indicators of rural India
 HD report – 138 for india
 Poverty reduction 55 %in 1973 to 36 %in 1993.
 Infant mortality rate- 75
 Gender disparity index – 103 for india
 Value - 0.41
Nature and characteristics of rural market

 Large and scattered market

 Heterogeneous market
 Income from agriculture
 Standard of living
 Infrastructure of living