A Brief Introduction to Rural Marketing – Indian Perspective

In an economy like India where around 70% of the population live in villages, Rural Marketing as a subject is being accepted with open arms across B-Schools and Universities. However, the problem is that not many people understand or can define the actual meaning of Rural Marketing. The term, Rural Marketing, means different things to different people. Off late with the opening up of the Indian Economy and the huge opportunity identified by global giants in rural India now demands serious attention towards the subject.

One of the closest definitions of Rural Marketing states Rural Marketing is the process of taking region specific goods and services to the rural market leading to exchanges between urban and rural markets simultaneously satisfying consumer demand and achieving organisational objectives.

Factors responsible for boom in Rural Marketing in India:

  1. Increasing Population of India: The growth of Indian population to being the world’s second most inhabited country with 1.252 billion (2013) residing in the nation has propelled increasing demand for consumer goods, services, banking facilities etc- And as stated above, with 70% of this population living in rural areas, a spike in the need for creating rural market specific strategies is inevitable.
  2. Rise in Rural Income: India turns to be a $1.7 trillion economy with per capital income soaring by 10.4% in 2013-14 to Rs 74,920, the purchasing power of both rural and urban India is growing every year.
  3. Government Rural Development Programs: Various initiatives taken by the Indian government has boosted growth the rural economy. Department of Rural development under the Ministry of Rural Development has initiated many schemes which has been facilitating and boosting the growth of rural India. Mahatma Gandhi National Rural Employment Guarantee Act, Swarnjayanti Gram Swarozgar Yojna, Pradhan Mantri Gram Sadak Yojna, Indira Awaas Yojana and National Social Assistance Programme are the few successful government schemes.
  4. Development of Transport and Communication Networks: Easy & quick access to information and to nearby developed cities has made the rural areas dynamically connect to their urban counterparts.
  5. Foreign Investments: Foreign investments in NGOs, working towards the betterment of rural areas, have gradually increased in the country. Consequently, there has been a steady rise in rural growth.


  1. I wont say that this is all in Rural Marketing. But yes, this makes up for a nice answer to the question on Introducing Rural Marketing in India


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