Government policies and programs are favoring rural development with five-year plans contributing significantly to this area. Consequently, rural income is increasing, leading to welfare and prosperity of the rural masses. The average per capita household expenditure in India has now risen to Rs. 382, with Punjab leading at Rs. 614. Lifestyle changes, with an upgradation in the form of products used, are witnessed in the rural regions. Globalization of economy and decentralization of production of goods and services by MNCs have totally altered the prospects of the rural youth and their perception of `life-world'. Many FMCG and durables have reached the saturation point in the urban markets but have not yet been introduced in the rural markets. Rural markets in India are expanding at such a rapid pace that they have overtaken the growth rates in the urban markets. Urban markets are becoming increasingly complex, competitive and saturated. This has compelled the durable companies to project their future in the rural markets. This article highlights the viability of Indian rural marketsdurables and FMCGin the context of this changing marketing scenario.

India, being largely an agricultural and rural oriented economy, the need for assessing the potential for rural business and studying buying behavior in rural markets is imperative. A thorough understanding of the rural markets has become an important aspect of marketing in the Indian marketing environment today. This attraction towards the rural markets is primarily due to the colossal size of varied demands of rural mass. In fact, rural markets are expanding in India at such a rapid pace that they have overtaken the growth in urban markets. This rate of growth of the rural market segment is, however, not the only factor that has driven marketing managers to go rural. The other compelling factor is the fact that the urban markets are becoming increasingly complex, competitive and saturated.

Further, the vast untapped potential of the rural markets is growing at a rapid pace. The policies of the government largely favor rural development programs. It is clearly highlighted by the fact that the outlay for rural development has risen significantly in the five year plans. The rural market is emerging stronger with a gradual increase in disposable income of the rural people. The structure of the Indian economy indicates that a significant portion of the total income is derived from the agricultural income. In addition, better procurement prices fixed for various crops and better yields due to many research programs have also contributed to the strengthening of the rural markets.

Rural Consumer: An Opportunity beyond Saturated Markets, Government policies, capita household expenditure, urban markets, Indian rural markets, marketing managers, rural development programs, agricultural income, Indian economy, five year plans.