KNOW YOUR MARKET

• INDIA’S 28 DIFFERENT STATES AND SEVEN UNION TERROTERIES PRESENT A UNIQUE COMBINATION OF FEATURES

• YOUR CUSTOMERS IN ONE STATE SHARE VIRTUALLY NOTHING WITH THEIR COUNTERPARTS IN ANOTHER STATE

• MORE THAN 80 CRORE PEOPLE LIVE IN INDIA’S SIX LAKH VILLAGES

• THE NEW MILLENMIUM BELONGS NEITHER TO THE URBAN MARKETS WHICH HAVE REACHED SATURATION AND WHERE MARGINS ARE UNDER PRESSURE, NOR TO THE EXPORT MARKET WHICH SUFFER FROM INADEQUATE INFRASTRUCTURE AT HOME AND UNCOMPETITIVE PRICES OVERSEAS

TASK• IMPROVE THE LEVEL OF INCOME

OF RURAL PEOPLE • ALTHOUGH THE INDIAN RURAL

SCENE HAS UNDERGONE A RAPID CHANGE DURING THE LAST DECADE, THE NECESSITY IS TO RAISE THE RURAL POPULATION FROM THE MORASS OF POVERTY AND MAKE IT AN INHERENT PART OF OUR ECONOMIC DEVELOPMENT

STUDENTS TO DISCUSS

• HOW CAN THIS BE DONE – THINK OF REAL LIFE EXAMPLES

• MAKE A CHART (THE RURAL SHOP WINDOW) INDICATING THE CORPORATES, THEIR PRODUCTS, AND WHAT THE CO. IS DOING FOR THE RURAL MARKET PENETRATION

• STUDY DURABLE OWNERSHIP OF RURAL VS. URBAN CONSUMER – NCAER DATA

• AND GROWTH RATE OF DURABLES

RISING RURAL PROSPERITY

• THERE IS DATA SHOWING A DRAMATIC SHIFT TOWARDS PROSPERITY IN RURAL HOUSEHOLDS - NCAER

• The demographics of India are remarkably diverse

• India has more than two thousand ethnic groups, and every major religion is represented

• The traditional view that India's rural economy is largely agrarian is about to take a beating with a dramatic fall in the share of agriculture in rural GDP, the value of goods and services produced in rural areas

• According to an analysis done for ET by Rajesh Shukla, senior fellow at the National Council of Applied Economic Research (NCAER), the combined share of industry and services in rural GDP has risen to 58.4% in the current fiscal from 48.6% in 1999-2000 on the back of strong growth in these sectors in the past five years while the share of agriculture slipped to 41.6%

CENSUS DATA - 2001• Population• (%)• Rural• 742,490,639• 72.2%• Urban • 286,119,689 – 27.8%

• Rural and Urban areas• Village or Town is recognized as the

basic area of habitation. In all censuses throughout the world this dichotomy of Rural and Urban areas is recognized and the data are generally conflicting .

• In the rural areas the smallest area of habitation, viz., the village generally follows the limits of a revenue village that is recognized by the normal district administration

• The revenue village need not necessarily be a single agglomeration of the habitations. But the revenue village has a definite surveyed boundary and each village is a separate administrative unit with separate village accounts. It may have one or more hamlets

• . The entire revenue village is one unit. There may be un-surveyed villages within forests etc., where the locally recognized boundaries of each habitation area is followed within the larger unit of say the forest range officers jurisdiction.

• a)  all places with a Municipality, Corporation or Cantonment or Notified Town Area(b)  all other places which satisfied the following criteria:              

•   (i)    a minimum population of 5,000.             (ii)    at least 75% of the male working population was non-agricultural.

            (iii)    a density of population of at least 400 sq. Km. (i.e. 1000 per sq. Mile)

The worker was further classified into one or more

of following groups:

• 1.  Working as Cultivator,2.  Working as Agricultural laborer,3.  Working at Household Industry, 4.  Doing work other than (1), (2) and (3).

• 1971 Census considerable departure was made in respect of the economic questions. The main activity of a person was ascertained according as he spent his time basically as a worker producing goods and services or as a non-worker.

• . For regular work in Industry, Trade or Services the reference period was the week prior to the enumeration and for seasonal work such as agriculture the last one year.

• Work involved not only the actual work but also effective supervision and direction of work. The person was categorized according to the main activity returned by an individual.

• The classifications adopted were as follows:

•   (i)   Working as Cultivator; (ii)   Working as Agricultural Labourer;(iii)   Working at Household Industry' and(iv)   Other Workers

Rural-Urban Areas

• The data in the table on Final Population Totals are presented separately for rural and urban areas. The unit of classification in this regard is 'town' for urban areas and 'village' for rural areas. In the Census of India 2001, the definition of urban area adopted is as follows:

• : (a) All statutory places with a municipality, corporation, cantonment board or notified town area committee, etc. (b) A place satisfying the following three criteria simultaneously:

• i) a minimum population of 5,000;ii) at least 75 per cent of male working population engaged in non-agricultural pursuits; and iii) a density of population of at least 400 per sq. km. (1,000 per sq. mile).

• For identification of places which would qualify to be classified as 'urban' all villages, which, as per the 1991 Census had a population of 4,000 and above, a population density of 400 persons per sq. km. and having at least 75 per cent of male working population engaged in non-agricultural activity were considered. To work out the proportion of male working population referred to above against b)(ii), the data relating to main workers were taken into account.

• An Urban Agglomeration is a continuous urban spread constituting a town and its adjoining urban outgrowths (OGs) or two or more physically contiguous towns together and any adjoining urban outgrowths of such towns

• . Examples of OGs are railway colonies, university campuses, port areas, etc., that may come up near a city or statutory town outside its statutory limits but within the revenue limits of a village or villages contiguous to the town or city.

• For the purpose of delineation of Urban Agglomerations during Census of India 2001, following criteria are taken as pre-requisites: (a) The core town or at least one of the constituent towns of an urban agglomeration should necessarily be a statutory town; and (b) The total population of all the constituents (i.e. towns and outgrowths) of an Urban Agglomeration should not be less than 20,000 (as per the 1991 Census).

• With these two basic criteria having been met, the following are the possible different situations in which Urban Agglomerations would be constituted: (i) a city or town with one or more contiguous outgrowths; (ii) two or more adjoining towns with their outgrowths; and (iii) a city and one or more adjoining towns with their outgrowths all of which form a continuous spread.