RURAL INDIA BOOMS

Rural India is booming like never before. At an estimated 720 - 790 million consumers, the Indian rural market has begun to attain size and growth rates to make it very attractive to companies. According to a report by CII and Tecnopak 'Rural markets are growing at double the rate of urban markets for many product categories'. Rural India accounts for more than 45% of total market in most consumer products including FMCG, consumer durables, two wheelers and 4 wheelers.

The FMCG Market last year has grown by 23% in rural India ( 18% in Urban India)

Consumer Durables are growing by 15% in rural India

Telecom is showing a growth of 31%

Growth and Penetration of some key FMCG categories in rural India

(Source IMRB, Period Dec 2008 to November 2009)

Rural India contributes to 43% of national income. There has been a consistent increase in incomes in rural India. Rural Income stood at $ 220 Billion ( Rs 9.9 lac crores) in 2004-05 which is expected to grow to $ 424 Billion ( Rs 19.12 lac crores) by 2010-11, a CAGR of 12 %. ( Source CII-Tecnopak).

There is no doubt that the aspirations and lifestyle of consumers in rural India is growing and are fast approaching the urban consumers lifestyle. The result - rural consumer now want's products and services that enhance his lifestyle - even though he is still very price conscious and demands value for money.

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