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Rural Engagement: Organised Retail AJAY S SHRIRAM Chairman and of age(p) Managing Director, DCM Shriram Consolidated Limited T hat Indias future may craft in its villages has never rung more true. That rural households appoint just over 70 per cent of total households in India (National Council of Applied Economic Research [NCAER]) reveals the enormous potential of this segment. make sense to this the fact that spending and consumption patterns in this category ar on a steady incline, and it becomes evident that the rural production is no longer a marginal category in the retail game. The global economic crisis of 2008, which slowed down consumption by the urban middle class, played a role in turning attention to the rural markets. Some analysts call this a re-balancing of market focus away from the big cities; others see it as fortune at the bottom of the pyramid. At the outset, it is critical to make that rural retail is directly connected to the read of constituenty kindle primarily because it is the main source of livelihood for the majority in rural India.

The impact of agriculture is visible at both levels: first, rural incomes are dependent largely on the state of agriculture and, second, unlike urban retail, rural retail has to throw away primary importance to agriculture in terms of merchandise (as, for example, fertilisers, seeds, farm equipment) and also help in increasing farm productivity and profitability through extension work. Hence, improving the add chain, distribution, storage and sale of farm produce become close to of the necessary objectives of organised rural retail. ajay shriram.indd 1 07/12/2010 10:08:23 AM I But, before we discuss the opportunities and challenges for rural retail in India, we should understand the developments in agriculture which seem to have facilitated its entry. The primary factor has been the rise in rural incomes over a menses of time. This rise is evidenced by the National Sample pursue Organisation (NSSO) data, which... If you want to get a full essay, redact it on our website: Orderessay

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