Page 21 - DMGT509_RURAL MARKETING

Rural Marketing

Notes India, the World Bank and IMF agreed to provide loans on the condition that India opens its
business boundaries to international players. This resulted in the economic reforms stated
above.
Rural market environment is changing fast because of the Government of India’s initiatives as
given below:

Government has organised a Ministry of Panchayat Raj on 22nd May 2004 to provide dedicated
and focussed attention for operationalising the mandate for Panchayat Raj. In pursuance of the
national consensus arrived at, the ministry releases unties monetary assistance to the state
governments for 250 identified backward districts.
There are centrally sponsored schemes to finance the panchayat sector of the rural India however
it has been found that the state governments are not coming out with the Activity mapping.
Some state governments have started District planning committees and the rest need to follow
suit. State governments are to facilitate and empower panchayats to raise 20 percent of their
budget as their own revenue. These initiatives are expected to bring in the Panchayats into the
country’s main stream of activities.
Only then can India claim to have striven towards Gandhiji’s goal of “Poorna Swaraj through
Gram Swaraj”- total independence through freedom of the Villages.
Now the present scene in India can be described as follows:
1. A good number of MNCs have started operating in the country.
2. Some Indian business have obtained foreign technology and finance.

3. Market growth has slowed down worldwide and more so in India.
4. Stock market has been giving shocks with fluctuations and scams.
5. Terrorists have further down swept the market.
6. Advertising and almost continuous promotion has become omnipresent.

7. Job market has slowed down both in India and elsewhere.
8. IT Industry has had a set back.
9. Many firms are busy in down sizing/right sizing their operations.
What the future holds is difficult to predict. One thing, which can be said with certainty, is that
while specialists will give way to generalists, innovation and quality will play a vital role in the
success of any firm.

India is a vast country with lots of diversities. Punjab and Andhra are known as the granaries of
India. Farm labour during harvesting season migrates to Punjab from Bihar. Bihar is a rich state
in minerals including iron and coal. It boasts of large steel plants and yet it has remained largely
under developed. Youths have taken to guns and there are a lot of Mafia gangs operating in
Bihar. West Bengal and Kerala have had Marxist influence. West Bengal has suffered from
labour unrest resulting in migration of industries from there, which was, at a time the industrial
capital of the country. Kerala has the highest literacy rate in the country. Uttar Pradesh, Bihar
and Madhya Pradesh were three largest states and now they have been bifurcated. Hopefully,
this will help them in becoming better managed. Mumbai has emerged as the commercial
capital and Bangalore as the IT capital of the country. Bangalore is a cosmopolitan city with good
climate through out the year.
India has large disparities as far as personal incomes are concerned. More than seventy percent
of the population lives in villages, with farming as their source of income. With increase in

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