Difference Between Rural And Urban 3g2n54

DIFFERENCE BETWEEN URBAN & RURAL MARKETS

Group No. : Roll No

Name

05.

Puja Awasthi

25.

Manan Dhamecha

33.

Ajay Jain

34.

Ankita Jain

41.

Aakash Kakkad

59.

Ruchi Mehta

ACKNOWLEDGEMENT

We are very happy to present this project. We express our profound gratitude and sincere thanks to everybody who by their direct or indirect have helped us in converting our thoughts into reality. First and foremost we are extremely thankful to PROF.SHAKUNTALA for full fledge co-operation and imparting the necessary technical knowledge which led to success of our project. We also thank SY.B.M.S STUDENTS for assistance without which we would have faced many difficulties. We would like to thank our beloved colleagues for ing us in the fabrication of project and their moral in the course of project. We extend our sincere thanks to our peer group who worked along with us to make our project successful.

INDEX o Introduction : Rural & Urban Area o Needs Of Rural Markets & Urban Markets o Limitation Of Rural Markets & Urban Markets o Difference Between Rural & Urban Markets i. ii. iii.

Rural V/S. Urban Consumers Rural V/S. Urban Markets Rural V/S. Urban Products & Services

o Difference Between Rural & Urban India o Developments Of Indian Markets o Conclusion

DEFINITION OF RURAL:

Define "rural" as those areas which are not urban in nature. Census Bureau's definition of rural as being an area of fewer than 1000 people per square mile. The 2000 Census reported that rural America was home to nearly 21% of the U.S. population (59,274,000 people).

What Is Rural Area: Rural areas or the country or countryside are areas that are not urbanized, though when large areas are described, country towns and smaller cities will be included. They have a low population density, and typically much of the land is devoted to agriculture. The degree to which areas of wilderness are included in the term varies; very large wilderness areas are not likely to be described by the term in most contexts. In most parts of the world rural areas have been declining since the 19th century or earlier, both as a proportion of land area, and in of the proportion of the population living in them. Urbanization encroaches on rural land, and the mechanization of agriculture has reduced the number of workers needed to work the land, while alternative employment is typically easier to obtain in cities. In parts of the developed world urban sprawl has greatly reduced the areas that can be called rural, and land use planning measures are used to protect the character of rural areas in various ways.

DEFINITION OF URBAN: It is in defining the Urbans areas that problems generally arise. However for the 1971 Census the definition adopted for an urban area which follows the pattern of 1961 was as follows:(a) All places with a Municipality, Corporation or Cantonment or Notified Town Area (b) All other places which satisfied the following criteria: i. ii. iii.

A minimum population of 5,000. At least 75% of the male working population was non-agricultural. A density of population of at least 400 sq. Km. (i.e. 1000 per sq. Mile)

What is Urban Area: An urban area is characterized by higher population density and vast human features in comparison to areas surrounding it. Urban areas may be cities, towns or conurbations, but the term is not commonly extended to rural settlements such as villages and hamlets. Urban areas are created and further developed by the process of urbanization. Measuring the extent of an urban area helps in analyzing population density and urban sprawl, and in determining urban and rural populations. Unlike an urban area, a metropolitan area includes not only the urban area, but also satellite cities plus intervening rural land that is socio-economically connected to the urban core city, typically by employment ties through commuting, with the urban core city being the primary labor market. In fact, urbanized areas agglomerate and grow as the core population/economic activity center within a larger metropolitan area or envelope.

NEEDS OF RURAL MARKET:

70% of India’s population lives in 627000 villages in rural areas. As per the National Council for Applied Economic Research (NCAER) study, there area as many ‘middle income and above’ households in the rural areas as there are in the urban areas. At the highest income level there are 2.3 million urban households as against 1.6 million households in rural areas. According to NCAER projections, the number of middle & high income households in rural India is expected to grow 80 million to 111 million by 2007.However, myths abound. India’s rural markets are often misunderstood. A clear distinction needs to be made with regard to the reality versus the image of rural India. If such a distinction is not made, we will be unable to distinguish between the serpent and the rope.

Formal markets in rural areas play an important role in improving agricultural marketing. They can: • • • • • •

Provide a location at which farmers can meet with traders; Increase retail competition by providing a convenient place where farmers can meet with consumers; Improve hygiene, if existing marketing activities are carried out in an insanitary manner; Reduce post-harvest losses by providing protection for produce from direct sunlight, rain, etc.; Make marketing a more pleasurable activity; and Provide a focal point for rural activities.

Retail facilities:

In some countries farmers travel from door to door to sell their produce. This can be time consuming and exhausting and may require investment in transport, such as a bicycle. Door-todoor selling also makes price setting difficult because farmers have little information regarding prices being charged by other sellers. Markets, on the other hand, provide a location where all buyers and sellers can meet. Consumers can see the range and prices of produce on offer and make choices based on their preferences and income. Sellers can take their produce to one location rather than having to go from door to door. They can see how much of a particular product is on offer, compare the quality of their produce with that of other sellers, and set their prices accordingly. In order to achieve such benefits, however, markets must be situated in locations acceptable to both sellers and buyers. This is emphasized strongly in this guide. There have been many examples of new markets being constructed in unsuitable locations and never being used! Existing market sites, or places where buyers and sellers meet informally (e.g. a plot of land at the side of the road), is usually the best places to construct new markets because they are clearly at locations favored by the s.

Improve hygiene:

Existing “markets” are often just areas of available land that buyers and sellers find convenient to use. They may be well established in the sense that they have existed at the site for a long time, or they may be temporary, for example, a vacant plot of land used until it is reclaimed by the owner for some other purpose. Either way, hygienic conditions are usually very poor. In most cases there are no toilet facilities or running water and probably no arrangements for waste disposal. In the rainy or monsoon season the market area may be extremely muddy, but sellers may display their produce on the ground, with a risk of contamination from the soil or mud. Many municipal markets are like this, even though s are often charged a fee. Improved markets should minimize all of these problems. Apart from providing a healthier overall market environment, such improvements can reduce the danger of food contamination.

Reduce post-harvest losses:

Unimproved markets usually lack any form of shelter. Produce is displayed and stored in the sun. Apart from conditions being very difficult for those using the markets, the lack of protection from the sun can have a major impact on the life of fresh produce and on its nutritional value. Leafy produce, for example, can be kept fresh by protecting it from the sun and by keeping it moist. This is not possible in markets that do not have either shelter or fresh water supplies.

Provide a rural focal point:

Retail markets frequently play an important social function. Farmers in many countries prefer to take their own produce to market rather than sell it to traders. The visit to the rural centre provides them with the opportunity to buy items unavailable in their villages and to catch up with local news. In many countries markets function as more than just trading places. They are the focal point of a rural centre and provide an important place where people can meet. Markets that are attractive places to do business draw buyers and sellers alike. Competition is promoted amongst sellers and at the same time the sellers have a large number of potential customers.

NEEDS OF URBAN MARKET: Population growth is not solely in larger metropolitan centres - the mega cities. The number of small and intermediate sized urban centres is also increasing and also has an important role as links in the marketing system. The International Institute for environment and development (IIED) estimated that by 2000, more than 60 percent of the urban population of Africa, the Caribbean and Southeast Asia (as well as Europe) were in urban centre’s of less than half a million inhabitants. These market towns and istrative centres are of critical importance in facilitating exchanges between rural and urban areas. Rural populations depend on these urban services, including access to traders and markets to dispose of their agricultural produce and to access the retail stores and other facilities located in local urban centres. The intermediate centres also provide employment opportunities for rural populations and may, in some cases, help to decrease migration pressure on the larger urban centres. Impact of urbanization on food security: Increased competition between urban land uses and agriculture land on the urban perimeter; Increased food supplies required, leading to greater traffic congestion and pollution, and to stress being placed on overloaded food distribution systems; Changing food consumption habits, with increased demand for convenience and processed foods, increasing food quality and public health concerns; and Distance of low-income families from markets increasing, meaning additional costs in time and transport to access food supplies. Impact of polarization on small and intermediate urban centers: As long as issues of social and spatial polarization (so often linked to economic reform, restructuring and the internationalization of trade and production) are not addressed, it is unlikely that regional economic growth policies can contribute to a more equitable development and more successful poverty reduction. This is one of the main reasons behind the failure of so many past regional development policies focusing on the role of small and intermediate urban centres in local economic development.

Marketing facilities and other post-harvest infrastructure are usually limited in expanding urban areas. Urbanization is largely unplanned and local authorities generally do not have clear policies on developing facilities to meet their future needs. The objective of marketing interventions is to bring an improvement in the marketing of horticultural and other agricultural produce, promoting strategies for increasing food security. An efficient and functioning marketing system is a precondition for agricultural diversification and improved nutrition. This enables better prices to be obtained by producers (leading to higher incomes) and improves the availability of competitively priced produce to consumers.

THE PROBLEM: An efficient marketing system can provide better prices to producers and improve the availability of competitively priced produce to consumers. In some cases new markets or improvements to existing markets in rural areas can help overcome many of the marketing problems faced. However, before considering whether to carry out improvements to markets and what type of improvements to introduce, it is important to be sure that markets, or lack of them, represent the main problem. Other causes of inefficient marketing could be: • • •

Poor roads; A lack of knowledge about marketing among farmers; An inadequate quantity of products to attract sufficient traders.

LIMITATION OF URBAN MARKET: •

•

•

Access to urban markets, by rural livestock producers, depends upon the existence of an infrastructure including communications and transport, intermediaries, market places and processing facilities. The links between producers and consumers, often direct in rural markets, are more likely to be extended through a chain of intermediary traders to reach urban markets. Within the market chain, products are transported from one location to another, and processed from one form into another. All these operations must be financed as well as the transaction costs of negotiating and enforcing contracts. Access, and hence tradability, also differs between types of livestock and their products. For e.g : Large animals may be moved large distances, on the hoof, but may lose condition as a result. Where motorized transport is available, it may well prove a cheaper alternative. Small animals, and poultry require transport but are bulky and therefore costly to move over large distances. None the less, for remote rural producers live animals are more readily tradable than most other livestock products. Products such as meat, milk and eggs are all perishable, while meat and milk require chilled transport if moved over large distances. Transport costs are considerably higher, per ton, than they are for live animals. Since transport costs also vary with distance to the market, the producer prices net of transport costs are much lower in remote production areas, than in locations close to the main markets. For similar reasons the costs of new inputs, supplied from urban areas are more costly for livestock producers in remote areas. Small-scale producers are at a particular disadvantage, due to the high unit costs of moving small consignments.

LIMITATIONS OF RURAL MARKET: As an entrepreneur, the individual or group of rural poor engaged in manufacturing activities of the micro-enterprise faces a number of challenges. Some of these are given below •

•

•

•

Most of the products are still sold at the local rural haats. This means that the products may not fetch a good price as there is limited demand for the products in the limited local market. Limited demand also implies a low turnover, resulting in turn in, and low income for the producer. Also, as these consumers are not overly conscious of the quality, the chances for product improvement remain bleak. There is limited awareness in the global market either about the availability of these products or about the existence of these micro-enterprises and their activities. With limited publicity, the products can hardly hope to build a market for themselves. The exhibitions and melas are not frequent phenomena. Also, their venues keep changing and are limited to a few towns/cities. Thus, the products are not available all the time in most of the places. There is no denying the fact that an intelligent market analysis goes a long way in sustaining the market for any product. Though a formidable task in itself, it assumes gigantic proportions in the present context as the rural poor, with his limited knowledge and finances can hardly be expected to carry out this exercise. Not only this, the existing marketing infrastructure is equally ill equipped to undertake the task. Nevertheless, such an exercise will help in analyzing the market for customer preferences and accordingly sensitizing the rural poor producers to the demand patterns of the market.

DIFFERENCE BETWEEN RURAL AND URBAN MARKETS: 1. Rural vs. urban consumers (Foreign products): Consumer Behavior: Last but not least, the consumer behavior is the task for the task for the companies. The mindset of the rural consumer is completely different from Urban Consumer. The Mindset of the consumer is different. For Ex: In urban market, to buy Electronic Item the customer thinks of Brand and Its updated feature. Where as in rural market he thinks of in so many ways, such as money, Durability, Buying Capacity and so on. So this mindset makes a difference in both markets. For Example: The biggest mistake a FMCG company can make while entering the rural India is to treat it as extension to the existing urban market. But there is a vast difference in the lifestyles of the rural and urban consumers. The rural Indian consumer is economically, socially, and psycho graphically different from his urban counterpart. The kind of choices that and urban customer takes for granted is different from the choices available to the rural counter parts. The difference in consumer behavior in essence stems from the way of thinking with the fairly simple thought process of the rural consumer in contrast to a much more complex urban counterpart. On top of this there has hardly been any research into the consumer behavior of the rural areas, whereas there is considerable amount of data on the urban consumers regarding things like - who is the influencer, who is the buyer, how do they go and buy, how much money do they spend on their purchases, etc. On the rural front the efforts have started only recently and will take time to come out with substantial results. So the primary challenge is to understand the buyer and his behavior. One more gray area that needs to be probed into is the importance of retailer in rural trade. Rural consumer’s brand choices are greatly restricted and this is where the retailer comes into the picture. The rural customer generally goes to the same retailer to buy goods. Naturally there’s a very strong bonding in of trust between the two. Also with the low education levels of rural sector the rural buying behavior is such that the consumer doesn't ask for the things explicitly by brand but like "laal wala sabun dena" or "paanch rupey waali chai dena". Now in such a scenario the brand becomes subservient to the retailer and he pushes whatever brand fetches him the greatest returns. Thus, as there is a need to understand the rural consumer, similarly need is there to study the retailer as he is a chief influencer in the buying decision.

2. Rural vs. urban Markets The market is a place where buyers and Sellers Exchange Things. In lay man "It is a place where buyers and sellers exchange goods/Service for some value in return such as Money" . So the Market is same everywhere. But, The difference is in the consumer behavior. There will be different buyers in each market. This is because of different factors which Influence them. So the same way there is a difference between Rural and Urban Market. The factors are so many to define. There is a difference in all the marketing Variables. That is where most of the companies approach with different Marketing Mix and Strategies to Rural Market. The strategies differ from the urban to rural market. The companies which have understood the phenomena of rural market have succeeded in the market, For Ex: HUL, ITC, Colgate, Rajdoot Motorcycle. These companies have done a perfect home work and Implemented in of effort and Operations. These companies approach shows that there is a difference between Rural and Urban Market. The Differences can be Infrastructure, Economy, Lifestyle, Socio- Cultural Background, Availability or reach, Habits, Competition, and Consumer Behavior.

Infrastructure: The facilities like Electricity, Internet, Roads and Buildings, Educational Institutions, Financial Institutions, Communication and Organized Market, Other Facilities differs in Urban and Rural market. In urban everything gets implemented soon and Availability is also there. Where as in rural market everything takes a good amount of time. Economy: Here the Economy means, the earning Capacity in a rural Market. The cost of Living always depends upon their way of earning. So, the Income levels are unreliable, as Most of them are depended upon the seasons and Agriculture. So the Income levels cannot be a fixed one. Lifestyle: The Lifestyle, that is living pattern of both the markets differ a lot. This can be important factor which influences the companies to think of when they approach rural market. Socio- Cultural Background: Due to the illiteracy level, and Culture adaptability from long time the rural market always gets differ than the urban market. The superstition and other belief as well as the way of thinking towards products and goods differ in these two markets.

Availability or Reach: Due to the areas which are diverted Geographically and Heterogeneous market the reach is very difficult. The logistics for rural market is a tough task than to reach the Urban Market.

Habits: The daily routine of the people makes them to cultivate different habits. Apart from due to the awareness is low in Media there will be a difference in the habits. Competition: The competition in the market for brands and Companies always differ As in rural markets it is always the channel Partner and Retailer plays a vital role. But where as in Urban Market Brand plays a great role.

3. Rural vs. Urban Products & Services India has been acknowledged as one of the most promising and fastest growing economy of the world. Besides urban and semi-urban areas, rural India has a huge potential. Many foreign brands are dominating particularly in consumer durable category. The purpose of the study is to understand the comparative attitudes of rural and urban Indian consumers towards the foreign products against Indian products. Both rural and urban consumers have rated foreign products very high as compared to domestic products. Rural consumers were found more impressed than their urban counterparts with foreign products in of maintenance services, technical advancement, prestige, durability, quality/performance, and wide choice of size and model. No significant differences were observed between rural and urban consumers in of ‘good style and appearance’. Indian producers in the coming times are going to face a very strong threat from foreign brands, particularly in consumer durable category. We will further classify the chart of how the products goes from rural to urban market as follows :

Tools and Technologies together brought Rural and Urban markets closer. Numbering over five lakhs, bamboo artisans in India face various problems relating to purchase of raw material, their processing, production of commercially viable items, and their subsequent sale. The Industrial Design Centre (IDC) has developed a number of technologies to bolster the unorganized craft sector by helping artisans produce value-added, contemporary bamboo products to compete with other materials in the urban and international markets they are:

• A tool-kit with nearly 100 product-specific hand tools to process bamboo • Small hand-operated machines for bamboo-processing, suitable for remote areas with unreliable power supply • Jigs, fixtures and moulds to aid control of sizes and give better finishes • Variety of treatments such as smoking, alum, etc. to prevent fungal and insect attacks •Various surface finishes using natural dyes • New weaves and product designs for ergonomically, functionally and aesthetically improved products

IITB / KVIC Technology Interface Unit for Enhanced Rural Industrialization Contrary to the general perception, the village industry sector in India has the capacity to be strong and competitive. The Khadi and Village Industries Commission (KVIC) of the Government of India have been providing necessary to this sector. IIT Bombay and KVIC are working together on a variety of problems of mutual interest so as to help employment generation in the rural sector. The aim is to enhance science and technology inputs to productive activities that utilize the local resources and skills of the rural people. Several projects are underway, particularly in the thrust areas of Agro- and Food Processing, Rural Engineering and Organic/Natural Products. Select Projects Include:

• Development of simple pedal powered devices such as water pump, battery charging unit, potter’s wheel, paddy thresher and flour/masala grinding units

• Process description for making chemical-free cane jaggery with desired characteristics; packaging solutions for jaggery; storage, preservation and awareness workshop for jaggery makers, traders and consumers

• An improved process to prepare herbal painkiller ‘Sneha Oil’, and setting up the pilot plant for manufacturing of the oil at Yusuf Meherauli Centre, Tara Village, Maharashtra

• Biochar unit with a burner system, which can be retrofitted to the existing wood fired bakery unit with simultaneous production of charcoal

• A simple, easy to operate and cost effective solar air heater unit for maintaining honey storage space above 18°C throughout a year It is expected that this Technology Interface Unit Collaborative t Project between KVIC and IIT-Bombay will facilitate close interactions between rural industry needs for technology up gradation / development and product testing. Efforts are being made to foster interest of faculty and students to solve the rural development issues through such initiatives.

RURAL AND URBAN INDIA

How is rural India different from urban India Apart from being an agrarian economy, the rural market in India has certain unique characteristics that differentiate it from the urban market.

1. Average levels of income in rural areas are lower than that in urban areas. For the purpose of comparison, the country's total population has been divided into five equal income quintiles and the average income in the highest quintile for urban areas has been assumed to be 100. Income brackets

Urban

Rural

Rural Income as % of urban

Q5

100

51

51%

Q4

45

22

49%

Q3

30

15

50%

Q2

20

11

55%

Q1

11

7

64%

Source: NCAER

Another comparison between the top 20 cities, comprising the bulk of the total economic activity in the urban areas by value, and the rural areas highlights the difference in income levels in monetary .

Average Annual Household Income (INR) Income brackets

Top 20 cities (INR)

Rural (INR)

Q5

301,734

135,936

Q1

43,878

19,536

Source: NCAER 2. While the bulk of purchases in urban areas is concentrated during festivals and auspicious occasions, maximum consumption in the rural pattern occurs around the harvesting season when the farm produce is sold. And because of this seasonal nature of earning, the ability of rural consumers to pay back loans is lower than their urban counterparts. 3. Rural customers trust domestic brands more than international ones since their level of awareness of global products (and information pertaining to them) is relatively low. 4. Customers in urban area are more "brand conscious" and are ready to pay higher prices for a branded product, whereas in rural areas, awareness of brands is low and thus, there is low brand . 5. The size of an average household in rural areas is 4.8 as compared to 4.3 in urban areas. As a result, the ratio of earning to dependents is lower in rural areas, resulting in lower disposable incomes and consequent lower spending on discretionary products. 6. Haats & melas, mandis and word-of-mouth publicity are the usual channels of communication for product promotion in rural areas, whereas television and the print media are the primary means of advertising in the urban market.

AUTOMATIVE SUCCESSIVE STORIES OF RURAL V/S URBAN MARKETS

From an automotive standpoint, vehicle penetration levels in rural India at 2.3%, as compared to 10% in urban areas offers a huge potential for players. Another factor that makes the rural market a suitable destination is its lower dependence on retail finance. Due to the limited availability of finance and seasonal income pattern, the number of cash purchases in rural areas is higher, as compared to urban areas, and therefore, this market has been relatively less affected by the credit crisis.

Traditionally, rural markets have always been smaller in size in comparison with urban centres. Considering smaller cities as a reflection of rural markets, it is noted that over the past few years, growth in rural areas has been higher than in urban ones. Going forward in 2009, according to National Council of Applied Economic Research (NCAER), automobile sales in rural markets are expected to post double-digit growth in 2009, which is higher than overall industry growth estimates.

DEVELOPMENTS OF MARKETS IN INDIA

The rural Indian market, which s for nearly 70% of the total number of households in the country, witnessed a 25% annual growth in consumer durables for 2008, while the urban market reflected an annual growth rate of 7-10%. Let's look at the factors, which make the rural market an attractive proposition for the automotive industry. 1. Large customer base - With a total population of more than 750 million, and covering around 95% of the country, rural areas have a huge customer base. Although due to the increase in urbanization, the rural population as a percentage of the country's total population is expected to fall, but in absolute , it continues to comprise a large pool of customers and is estimated to touch 900 million by 2020.

2. Increased income levels - There have been several factors that have resulted in an increase in income levels in the last few years. According to estimates, the percentage of households earning less than USD1 was as high as 96% in 1985, which is estimated to come down to 29% by 2025. Similarly, the percentage of households earning within USD2 to USD5 is expected to increase from 1% in 1985 to 20% by 2025. Let's look at some factors that will result in increased purchasing power in rural India. a) Increase in Minimum Price (MSP): Record food grain production (230 million tonnes for FY08) and the increase in MSP in the last couple of years have increased purchasing power in rural and semi-urban areas of the country. For example, this has resulted in an additional income of INR 6,000 per acre per crop cycle for paddy. b) National Rural Employment Guarantee Scheme (NREGS): The primary objective of NREGS is to provide gainful employment to nearly 45 million rural families (mainly landless labourers) that live below the poverty line. The scheme guarantees 100 days of employment (in a financial year) to every household those volunteers to participate. It has resulted in a rise in minimum wages in many states, with the average wage rise being around 32%. c) Sixth Pay Commission: According to estimates, 52% of the employees who benefited from the Sixth Pay Commission live in "C" and unclassified cities. Under the pay commission, the average salary has been increased by 21 %, which entails an additional government expenditure of INR 80 billion every year in addition to a one-time payment of arrears for 2½ years, which is estimated at INR 180 billion. d) Farm loan waiver: In the last budget, the government waived agricultural loans to the extent of 100% for around 30 million small and marginal farmers and 25% for other farmers. These farmers also became eligible for fresh agricultural loans. The total cost to the government for these waivers is estimated to be INR 720 billion.

3. Enablers such as financing ▪ Over the years, the government has taken various steps to provide rural areas with a strong credit structure. Regional Rural Banks (RRBs) have become a crucial part of the rural credit structure in India. They were created in 1975 when the need for a stronger institutional arrangement for providing rural credit was felt. India currently has around 190 RRBs with more than 14,000 branches. ▪ In addition, schemes such as the Kisan Credit Card (KCC) aim to provide credit to farmers in rural areas. Currently, there are 72 million enrolments under KCC in rural areas; surprisingly, this equals the number of credit card s in urban areas. ▪ Cooperative societies have been the traditional source of finance in rural areas. These societies have a hip of over 120 million rural people. Over he last few years, scheduled commercial banks have also expanded their networks, which currently stands at 11,367 offices in rural areas. ▪ From an automotive company's perspective, the OEMs have tried to leverage existing financial institutions in these areas. The number of tie-ups with local banks and NBFCs have significantly increased over the last few years. Currently, the share of financing by NBFCs s for 20% of the total number of vehicles financed.

4. Infrastructure development

Infrastructural development in India's rural belt has gained momentum in recent years and is the key to narrow the urban-rural divide in the country. Currently, 60% of the villages are connected with road networks. As a part of the Eleventh Five Year Plan, the government plans to construct 130,000 kilometers of new rural roads and has earmarked around 30% of the total public investment for rural infrastructure development. The Pradhan Mantri Gram Sadak Yojana (PMGSY) aims to connect all villages with a population of 500 and above (250 in the case of hilly and desert areas) with all-weather roads. The target is to construct 146,000 kilometers of rural roads and upgrade another 196,000 kilometers.

Telecom penetration is a fair representation of infrastructure advancement. It has increased significantly in rural areas in the last decade with these markets contributing over 70% to the total growth in the country's subscriber base. In coming years, investments in rural telecom infrastructure are expected to result in More than 250 million subscribers by FY15.

Conclusion: Indian rural market is undoubtedly complex but there are some simple truths that we need to accept. The rural consumers are very value-conscious. They may or may not have purchasing power, but they can make a difference to the company's growth if concentrated. Gone were the days when a rural consumer had to go to a nearby town or city to buy a branded product. The growing power of the rural consumer is an opportunity for the companies to flock to the rural markets. Gandhiji believed that India's future lay in her villages and rural markets will have a significant part in India's economy. With the technological innovations, infrastructure development and enrichment of human capital in rural areas, backed by policy by the government recognizes agriculture as one of powerful growth engine. Changes in Urban Markets are oriented towards increasing social well-being, strengthening living standard, improving the quality of life, and creating conditions for a faster inclusion in INDIAN business and social trends. These objectives are realized through the transition process on basis of compliance with the criteria of free market economy and market democracy. Transition of local government is a part of the process. The transition which realizes a shift from socialist to capitalist systems is performed with the aim of realizing macroeconomic stability, economic liberalization, high share of private sector in GDP, efficient management in private and public sector, reliable legal system and effective protection of property rights.

REFERENCE 1. http://www.pib.nic.in/ 2. http://www.livemint.com/2011/12/15003725/The-rise-of-middle-India.html 3. Co-Operative & Rural Markets – SYBMS (Vipul’s – By Kale & Ahmed)

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