Rural sales drive growth

Rural markets have witnessed a higher growth than their urban counterparts, according to a national summit on rural marketing. The consumer goods and services markets have been the most vibrant in these areas.

Life Insurance Corporation Managing Director RK Vashistha said there are three major contributors to the rural economy: agriculture, services and manufacturing. The biggest potential for rural marketing lies in the FMCG (fast moving consumer goods) and services sectors, he added.

However, he said problems still existed in the services sector. "The need of the hour is to understand the customer's need, and affordability," Vashistha said at a summit organised by the Birla Institute of Management Technology (BIMTECH).

Pradeep Kashyap of MART said the development of roads has led to a 16.9 per cent growth in the agricultural sector. According to him, the future of rural marketing lay in the infotech and retail sectors.