Many times, we read about the miserable condition of the poor people living in rural areas of South Asia. Millions of them even earn less than a dollar a day and barely live and the big companies do not think about them as these people do not have purchasing capacity. However, a survey on Indian rural areas done by world famous McKinsey has found out that by 2020 rural India will become a market worth $500-600 billion. Well most of the villages do not have any kind of basic infrastructures and the Indian government is trying to develop the infrastructures. However, according to this survey, more should be done than building infrastructures. The survey has pinpointed some industries that can be successfully built in the rural areas.
Enterprises based on fruits and vegetables, wheat, dairy, poultry are ideal for rural areas always. The survey also indicates that non-traditional items like textiles, tourism, handicraft exports, and pulp wood cultivation have good prospect too. The survey has argued against the idea of diving India I just two categories- rural and urban areas. Rather in its survey it could find 4 categories in rural areas.
I am hopeful that this survey will encourage many big companies to think about investing in rural India. Why not? The businessmen are where the market is.
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