1

Introduction
Globalization is very common theme of discussion and analysis these
days. It has become a major concern of thinkers on development and
those connected with development policies in governments it should
indeed be the concern of the people in general, particularly in the
developing countries, as it has the potential of having a deep impact on
their lives.
One hears the loud voices of the proponents of globalization who
proclaim that it has infinite potential for the development and welfare of
mankind. They say that it is an inevitable and irreversible process in any
case, and thus one should endeavour to make the best of it.
On the other hand, the opponents, who are equally loud and persistent if
not more, assert that globalization is a veritable evil, out to drive the
poor countries to abject poverty. Powerful arguments are placed by both
sides in support of their respective claims.
As it will be explained later, globalization has particularly adverse
impacts on the poorer and weaker sections of society and on small
business enterprises. Hence, a proper awareness of its nature,
implications and impacts is necessary in the developing countries, where
property is rampant and business activity is almost entirely limited to
small and household units. It should be relevant for people to know how
globalization influences the development process and what impact it has
on poverty.



2

DEFINITION of globalisation



This is the integration of economies, industries,
markets, cultures and policy-making around the
world.


Globalization describes a process by which
national and regional economies, societies, and
cultures have become integrated through the
global network of trade, communication,
immigration and transportation.

3

Causes and effects of Globalization

First of all Globalization is a positive thing and it benefits a country for
example, specializes in a certain product and then exchange that good
with other countries. But it does not only have positive aspects also the
disadvantages have to be noticed regard to this topic.
Economic integration and free trade conditions have produced an
unstoppable movement towards economic globalization. Most
economists applaud the trend, pointing to the modernization and
growing wealth that have resulted. But many countries have been
forgotten or have even been harmed by globalization. So what have been
the positive and negative effects of this globalization trend?
First of all the principal cause and effect of globalization is international
trade, which has expanded substantially. A growing trade has often been
followed by higher economic growth, although not in all cases. For
example: Annual growth rates of GDP in East and Southeast Asia were
6-8 and in Latin America and Sub-Saharan Africa they averaged less
than half a percent per year.

On the other hand there is the unemployment effect. While growing
trade has general created more jobs, the parallel growth in competition
has forced many companies to fire their workers in order to cut costs,
boost efficiency and increase profits. Especially some less-developed
countries had to deal with this negative effect. China, which has
experienced a strong economic growth in the last years, has begun to
struggle with unemployment, particularly in urban areas. So it becomes
obvious that globalization is also Accompanied by negative aspects.
Another point which should be considered when talking about
globalization is the income distribution. Experts suggest that the
increased trade between North and South has reduced income inequality
among skilled and semi-skilled workers in the South. On the other
hand it has increased the inequality among such workers in the North.
4

This is because manufactured exports from the South raise demand and
wages for workers with only limited skills and education. But the effect
in the North is the opposite. There the service and technology industries
pay top wages to highly skilled workers but have little use for semi-
skilled labor.

There are a lot of other fields where it becomes clear that globalization is
followed by a lot of advantages, but also disadvantages. Overall it can be
said that globalization appears to have deepened inequalities in the
international distribution of income. The next picture shows different
areas influenced by globalization.

5



6

GlobalizationAn unstoppable force?

There was a time when Coca-Cola was the hallmark of a global
company, selling its soft drink in virtually every country, in virtually
every language. But now the world is used to MacDonalds selling
hamburgers in Moscow, Beijing and Karachi, while Toyota pick-up
trucks roam the African Sahel, and Sony televisions occupy a central
location in homes worldwide.

This is the golden age for business, commerce and trade. Never before in
the history of the world has there been such an opportunity to sell as
many goods to as many people as there is right now.

Its not just big companies that are in on the explosionalthough they
may dominate. Instant information and communications have allowed
indigenous people in Guyana to market handmade hammocks through
the Internet, and even the fifty or so people living on remote Pitcairn
Island can sell their handicrafts anywhere.

With instant information and communication, virtually everything is
available to anyone, anywhere. Markets are now global and many
corporations are often richer and more powerful than many countries.

Globalization does not stop there. With the Internet and state-ofthe-art
telecommunications, sales and technical representatives based in India
can answer customer questions in the United States.

Back-office insurance jobs can be located thousands of miles from
company headquarters, in different parts of the country, in different
countries, and on different continents.


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More trade, more markets, more business, more information, more jobs,
more opportunities. This is the promise of a globalized world. The tide
of globalization has already brought considerable wealth to areas of the
world long accustomed to only poverty, and even more wealth to areas
that were doing quite well already. In East and South-East Asia,
countries have turned to export-based economies to propel themselves
up the development ladder.

In the coastal regions of China, global market-oriented businesses have
helped raise living standards for millions of people. This whirlwind of
economic activity has brought many benefits, and wealth, to many
people.

There has been faster economic growth, higher living standards,
accelerated innovation, and new opportunities for both individuals and
countries. Accompanied by a revolution in information and technology,
the world is very much a smaller and more integrated planet than ever
before.

















8

MAIN IMPLICATIONS OF GLOBALIZATION

Now let us revert to the impact and implications of free and unrestrained
economic operations across the borders. We shall consider two types of
operations, viz,
i. The flow of goods and services
ii. The flow of capital, separately
Trade in goods
There are two types trade in goods and services i.e,
i. Import of goods and services
ii. Export of goods and services

1. Import of goods
Totally unrestrained imports will mean that the traders can import
anything, ranging from machines to motor cars to agricultural
products. Several benefits of this aspect of globalization are pointed
out by the proponents. One, the consumers will have a wide choice
for themselves. Abundance of supply from various sources will make
it possible for them to have better quality goods at lower prices.
Imports will thus give greater satisfaction to the consumers at less
expense. Two, imports can result in improvement of domestic
production. It can happen in two ways.
The use of goods imported machinery may improve the
production of goods.
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The domestic producers may have the inclination as well as the
possibility of improving the quality of their products and the
production process, by observing the performance of a better
quality imported product.

2. Export of goods
At present there are some stipulations in the WTO on the discretion of
governments to restrict exports in certain situation; but real
globalization would require that there should be no restrain on the
export of goods. Thus the export of industrial raw materials cannot be
stopped or controlled. This will undermine the efforts of the
developing countries to develop processing industries, based on their
raw materials. Besides, full freedom of export of food items may have
adverse effect on availability of food for domestic consumption.

Flow of capital
Inflow
Let us now move on to the flow of capital across the border. Foreign
money may come into or go out a country in many forms. One simple
form is inflow or outflow on account of trade in goods and services.
Another form of the flow is the payment of interest and dividend on
investments. This type of the flow of capital are said to be on Current
Account. There is yet another type of capital, which comes on its own,
unrelated to the payment for export of goods and services or to the
income on loans and investments. This inflow of capital is said to be on
Capital Accounts. Its main components are investments and
repayments of loan.
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Outflow

The outflow of capital on current account may occur through the import
of goods and services and through the dividend and interest payment on
the investment made from foreign countries. The outflow on capital
account may be through the repayment of loan installments, repatriation
of the proceeds of the sale of share and bonds and investments made by
the country abroad.
Most of the developing countries firms do not make much investment
abroad on their own. The capital outflow of an account import of goods
and services may be sizeable and infact with the spread of globalization,
it may rise very high. With the limited supply capacity of the developing
countries and their constraints in competing with big firms in the
developed countries their capacity to finance their imports may get
reduced overtime.
The outflow due to repatriation of profit dividend interest on foreign
investment may result in a heavy drain on foreign currency over a course
of time. This part of outflow may cause severe problems; but it will be
anticipated. What is still more risky is the outflow which take place
suddenly in the absence of any control.




11

DIRECT EFFECTS ON DEVELOPMENT AND POVERTY
Some idea of the positive and negative aspects of the main economic
operations in the wake of globalization has been given earlier. As has
been mentioned earlier unrestrained import of agricultural products is
likely to hurt farmers, particularly small farmers. They do not generally
take to agriculture as a commercial venture, but more because the land is
with the family from before and there is no other alternative means of
livelihood.
Such farmers and the farm labourers working with them will be
unemployed. The rural economy will be disrupted . The economic
theory will suggest that these people will take to other profitable
professions but there will hardly be any such alternative possibilities.
The rural population on such a large scale on most of the developing
countries can not be shifted to alternatives employment in the future. A
vast section of the rural population will thus be submerge in poverty.
With the depression of income of such farmers and farm labourers, the
demand for goods, both agricultural and industrial, will diminish, and
this will naturally have an adverse effect on the various sectors of
production. Similarly, unrestrained import of industrial products is likely
to hurt the domestic industry. Even the big industries will find it difficult
to cope with the competition. A very large section of the population in
the industrial sectors, both the industrialist and workers, are likely to
loose income and employment. Development will slow down and
poverty will be enhanced.



12

A similar scenario is likely to emerge in the service sectors as well, if
there is unrestrained import of services. As mentioned earlier, free flow
of capital is likely to make foreign exchange reserves and income
uncertain and it is also likely to destabilise the financial sector and
infact, even a countrys economy as a whole.

Globalisation constraining competition

It is highly ironical that globalisation, which is being championed
mainly on the merit of it encouraging competition, is actually resulting
in constraining competition in some ways. There is a spate of the merger
and acquisitions (M&A) of firms. Free movement of capital is making
M&A also possible across borders. It is being defended on the ground
that is improves the production process by increasing this scale of
production, deepening research and development activities, cutting
duplication of activities.
Operation of free competition in a economic activities can be effective
only if the numbers of operator is large to that extent the reduction of the
number of operators through M&A reduces competition. If it is only
some isolated instances, it might not cause worry; but the rate is high
there are of course, some checks on M&A in the developed countries,
but mostly they relate to the effect on the domestic consumers.
The possible adverse impact on the industry and consumers of
developing countries is generally not a taken into account in there
inquiries on proposed M&A in their countries.

13

Introduction

Marketing is the
process of
communicating the
value of a product or
service to customers,
for the purpose of
selling that product or
service. From a
societal point of view,
marketing is the link
between a societys material requirements and its economic patterns of
response. Marketing satisfies these needs and wants through exchange
processes and building long term relationships. Marketing can be looked
at as an organizational function and a set of processes for creating,
delivering and communicating value to customers, and managing
customer relationships in ways that also benefit the organization and
its shareholders. Marketing is the science of choosing target
markets through market analysis and market segmentation, as well as
understanding consumer buying behavior and providing superior
customer value.

Marketing may be narrowly defined as a process by which goods and
services are exchanged and the values determined in terms of money
prices. That means marketing includes all those activities carried on to
transfer the goods from the manufacturers or producers to the
consumers. Marketing is more than a mere physical process of
distributing goods and services. It is the process of discovering and
translating consumer wants into products and services. It begins with the
customer (by finding their needs) and ends with the customer (by
satisfying their needs).
14

DEfinitions
- According to William J. Stanton,

Marketing as a total system of business activities designed to plan,
price, promote and distribute want satisfying goods and services to the
present and potential customers.

- According to Marting L. Bells,

Marketing as the management task of strategically planning, directing
and controlling the application of enterprise effot to profit making
programmes which provide customer satisfaction - a task which involves
the integration of all business activities into a unified system of action.

- According to Philip Kotler,
Marketing as a human activity directed to satisfying process.
The above definitions provide us an idea on the nature of marketing.
The features in the above definitions are that marketing,
a) is an exchange process.
b) covers a variety of functions to be carried out in an integrated manner,
and
c) is directed to satisfy the needs/desires/wants of the consumer.
Source: http://www.du.ac.in
15


Functions of marketing
Researching
Buying
Product development and management
Production
Promotion
Standardization and grading
Pricing
Distribution
Risk bearing
Financing
After sales-service

(1)Research function: The research function of marketing is that
function of marketing that enables you to generate adequate information
regarding your particular market of target. You must carry out adequate
research to identify the size, behavior, culture, believe, genders etc. of
your target market segment, their needs and want, and then develop
effective product that can meet and satisfy these market needs and want.

(2)Buying function: The function of buying is performed in order to
acquire quality materials for production. When you design a good
product concept, you should also ensure you're buying the essential
materials for the product. This function is carried out by the purchase
and supply department, but your specifications of materials goes a long
way in assisting the purchasing department to acquire the necessary
materials needed for production.

(3)Product development and management: Product development is an
essential function of marketing since it was the duties of the marketing
16

department to identify what the market need or want and then design
effective product based on the identified need and want of the market.


(4)Production function: Production is the function performs by the
production department. Though, this is interrelated to the department of
marketing, because your product must possess the essential
characteristics that can meet the target market needs and want as
identified during your market research, such characteristics as in your
product Test, Form, Packaging etc.

(5)Promotion function: Promotion is one of the core functions of
marketing since your finish product must not remain in the place of
production, hence, you as a marketer must design effective
communication strategies to informing the availability of your product to
your target market.

(6)Standardization and grading: The function of standardization is to
establish specified characteristics that your product must conform to,
such standard as in having a specify test, ingredient etc. That makes your
product brand so unique.

Grading comes in when you sort and classify your product into deferent
sizes or quantities for different market segment while maintaining your
product standard.

(7)Pricing function: You perform the function of pricing on your
product offerings by designing effective pricing systems base on your
product stage and performance in the product life cycle. Price is the
actual value consumers perceive on your product, so you as a marketer
should ensure that your value of your product is not too high or too low
to that of your costumers.

17

(8)Distribution function: The function of distribution is to ensure that
your product is easily and effectively moved from the point of
production to the target market, the kind of transportation system to
employ e.g. Road, rail, water or air, and ensures that the product can be
easily accessed by customers.

(9)Risk bearing function: The process of moving a finished product
from the point of production to the point of consumptions is
characterized with lots of risks, such risks as in product damaging,
pilferage and defaults etc. So you must provide effective packaging
system to protect your product, good warehouse for the storage of your
product until they are needed, effective transportation system to speedily
deliver your product on time.

(10)Financing function: financing deals with the part of marketing to
providing incomes for your business. It refers to how you can raise
capital to start operation and remain in business. It refers to your modes
of payment for the goods and services transferred to your costumers.

(11) After sales-service: In a more complex and technical product, you
as a marketer should make provision in order to assist your customers
after they have purchased your product. In terms of machines or heavy
equipment product that requires installation or maintenance, most
marketing organization renders such services like installing the machine
or maintaining it for stipulated periods on time for free or by a little
service charge.

After sales services is an effective marketing strategy to building a long
lasting customer relationship, staying ahead of your competitors while
making profit for your organization.


Source: http://mymarketingnotebook.blogspot.in
18

The Four P's of Marketing

Marketing is integral to the success of a business, large or small, with
its primary focus on quality, consumer value and customer satisfaction.
A strategy commonly utilised is the "Marketing Mix". This tool is made
up of four variables known as the "Four P's" of marketing. The
marketing mix blends these variables together to produce the results it
wants to achieve in its specific target market.
The following describes the four P's of marketing:

Product
Products are the goods and services that your business provides for sale
to your target market. When developing a product you should consider
quality, design, features, packaging, customer service and any
subsequent after-sales service.

Place
Place is in regards to distribution, location and methods of getting the
product to the customer. This includes the location of your business,
shop front, distributors, logistics and the potential use of the internet to
sell products directly to consumers.

Price
Price concerns the amount of money that customers must pay in order to
purchase your products. There are a number of considerations in relation
to price including price setting, discounting, credit and cash purchases as
well as credit collection.

Promotion
Promotion refers to the act of communicating the benefits and value of
your product to consumers. It then involves persuading general
consumers to become customers of your business using methods such as
advertising, direct marketing, personal selling and sales promotion.
Source: http://toolkit.smallbiz.nsw.gov.au
19

Introduction
Rural Marketing is defined as any marketing activity in which the one
dominant participant is from a rural area. This implies that rural
marketing consists of marketing of inputs (products or services) to the
rural as well as marketing of outputs from the rural markets to other
geographical areas. Marketing is the process used to determine what
products or services may be of interest to customers, and the strategy to
use in sales, communications and business development. It generates the
strategy that underlies sales techniques, business communication, and
business developments. Rural areas of the country or countryside are
areas that are not urbanized, though when large areas are described
country towns and smaller cities will be included. They have a low
population density, and typically much of the land is devoted to
agriculture Marketing strategies that worked for urban markets do not
necessarily work for the rural ones.
Rural Marketing meant different in 3 different periods. Part1(before
1960):
It was a completely an unorganized market, where baniyas and
mahajans dominated the market .Rural marketing was another word for
agricultural marketing because agricultural produces like food grains
and industrial like food grains and industrial like cotton, oil seeds,
sugarcane etc occupied primary attention and the supply chain activities
of firm supplying agricultural inputs and of artisans in the rural areas
received secondary attention.
Part 2(1960 to 1990):
The greatest thing which happened in this period was green revolution
which led to farming involving scientific and technological methods and
many poor villages became prosperous business centers. With better
irrigation facilities, soil testing, use of high yield variety seeds,
fertilizers, pesticides and deployment of machines like power tillers,
harvesters, threshers etc, the output increased especially wheat and
paddies .Due to this marketing of agricultural inputs was also now there
a new potential market. Now marketing of rural marketing meant
marketing of agricultural inputs and agricultural marketing. Agencies
like Khadi and Village Industries Commission, Girijan Cooperatie
Societies APCO Fabrics, IFFCO, KRIBHCO Company bloomed and
government paid special attention to promote these products.Sale of
handicrafts, handloom textiles, soaps ,safety matches and crackers
increased on large scale in urban areas.

20

Part 3(after mid 1990):
Since 1990 ,Indias industrial sector had gained strength and maturity.
Its contribution to GNP increased substantially. There was
metamorphosis of agricultural society to industrial society. With
support and development programmes of central and state
governments, service organizations and socially responsible business
groups like Mafatlal, Tatas Birla, Goenkas and others the rural areas
progressed socially and economically. The economic reforms further
increased competition in the market, the rural market grew steadily for
household consumables and durables. A few other companies known
for their marketing orientation Hindustan Lever, Philip India, Asian
Paints, Singer and Larsen and Turbo have also taken great efforts in this
direction. Hindustan Unilever(HUL) started successful rural marketing
projects like Project Shakti and Operation Bharat in India.
Hindustan Unilever began the first home to home operation in rural
areas in personal products in 1998 which was known as Operation
Bharat.By 1999 BharatOperation covered 13 million rural
household. During the course of operation, there were HUL vans which
visited villages across the country distributing sample packs comprising
a low unit price pack each of shampoo, talcum powder ,toothpaste and
skin cream priced at 15rs.This was to create awareness of the
companys product categories and of the affordability of the product.
Coca Cola also explored the market by introducing bottles atrs.5,backed
with Aamir Khan advertisement .
Amul is another case in point of aggressive rural marketing .In 2000,ITC
tried developing direct contact with farmers in remote villages in
Madhya Pradesh.ITC E- choupal was a result of this initiative. Rural
Marketing is growing at a far greater speed than its urban counterpart
.Multinationals have realized the potential and are ready to tap rural
markets .To name a few Colgate, Eveready batteries ,LG Electronics
,Phillips ,BSNL, Life Insurance Corporation, Britannia and Hero Honda
are trying to seep in rural markets. Problems in Rural Marketing
Communication.
The literacy rate among rural consumers is very low there print media
has very little scope in the rural areas .In India there are 18 languages
which are recognized, these languages and many dialects are spoken in
rural India. English and Hindi are not understood by many people. Due
to this rural consumers do not get exposure to new products.
Transportation: The transportation infrastructure is extremely poor in
rural India. In India there are six lakh villages. Almost 50 per cent of
them are not connected by road also. India has second largest railway
21

system in the world, many parts in India are not connected through
railways. Availability of appropriate media:The radio network in theory
covers 90 per cent, but people who actually listen is less.T.V is not
available in every house in rural areas.Therefore opportunities are very
low in rural areas. Warehousing: There are many agricultural products
which are produced in a particular season but is demanded throughout.
Due to lack of adequate and scientific storage facilities in rural areas,
stocks are being maintained in towns only.















Source: www.scribd.com
22

Marketing process of rural marketing.
Rural marketing is a two way marketing process that can be in the form
of:










1.Urban to Rural: A major part of rural marketing falls into this
category. It involves the selling of products and services by urban
marketers in rural areas. These include: Pesticides, FMCG Products,
Consumer durables, etc.
2. Rural to Urban: Transactions in this category basically fall under
agricultural marketing where a rural producer seeks to sell his produce
in an urban market. An agent or a middleman plays a crucial role in the
marketing process. The following are some of the important items sold
from the rural to urban areas: seeds, fruits and vegetables, milk and
related products, forest produce, spices, etc.
URBAN
RURAL
RURAL
RURAL URBAN RURAL
23

3. Rural to Rural: This includes the activities that take place between
two villages in close proximity to each other. The transactions relate to
the areas of expertise the particular village has. These include selling of
agricultural tools, cattle, carts and others to another village in its
proximity.
Indian agricultural industry has been growing at a tremendous pace in
the last few decades. The rural areas are consuming a large number of
industrial and urban manufactured products. The rural agricultural
production and consumption process plays a predominant role in
developing the Indian economy. This has designed a new way for
understanding a new process called Rural Marketing.
The concept of rural marketing has to be distinguished from
Agricultural marketing. Marketing is the process of identifying and
satisfying customers needs and providing them with adequate after
sales service. Rural marketing is different from agricultural marketing,
which signifies marketing of rural products to the urban consumer or
institutional markets. Rural marketing
basically deals with delivering manufactured or processed inputs or
services to rural producers, the demand for which is basically a derived
outcome.
Rural marketing differs from agricultural or consumer products
marketing in terms of the nature of transactions, which includes
participants, products, modalities, norms and outcomes. The
participants in case of Rural Marketing would also be different they
include input manufacturers, dealers, farmers, opinion makers,
government agencies and traders.
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Rural marketing needs to combine concerns for profit with a concern
for the society, besides being titled towards profit. Most of the jobs of
marketing and selling are left to the local dealers and retailers. The
market for input gets interlocked with other markets like output,
consumer goods, money and labour. Rural marketing in India is not
much developed there are many hindrances in the area of market,
product design and positioning, pricing, distribution and promotion .











Source: www.scribd.com
25

Nature of Rural Market
Large, Diverse and Scattered Market:
Rural market in India is large, and scattered into a number of regions.
There may be less number of shops available to market products.
Major Income of Rural consumers is from Agriculture:
Rural Prosperity is tied with agriculture prosperity. In the event of a
crop failure, the income of the rural masses is directly affected.
Standard of Living and rising disposable income of the rural
customers:
It is known that majority of the rural population lives below poverty
line and has low literacy rate, low per capital income, societal
backwardness, low savings, etc. But the new tax structure, good
monsoon, government regulation on pricing has created disposable
incomes. Today the rural customer spends money to get value and is
aware of the happening around him.
Traditional Outlook:
Villages develop slowly and have a traditional outlook. Change is a
continuous process but most rural people accept change gradually. This
is gradually changing due to literacy especially the youth who have
begun to change the outlook in the villages.
Rising literacy levels:
It is documented that approximately 45% of rural Indians are literate.
Hence awareness has increases and the farmers are well-informed
26

about the world around them. They are also educating themselves on
the new technology around them and aspiring for a better lifestyle.
Diverse socioeconomic background:
Due to dispersion of geographical areas and uneven land fertility, rural
people have disparate socioeconomic background, which ultimately
affects the rural market.
Infrastructure Facilities:
The infrastructure facilities like cemented roads, warehouses
communication system, and financial facilities are inadequate in rural
areas. Hence physical distribution is a challenge to marketers who have
found innovative ways to market their products.










Source: www.scribd.com

27

Characteristics of rural market
1) Large and Scattered Market
a) It consists of approximately 75 crore rural consumer who live, 38,365
villages and the rural market is geographically scattered.
b) About 1,45,098 v 23 percent of the total number of village in India
have population less than 200 and another 21 percent have population
between 200 and 500 and on the other hand 13 percent villages have
50 percent rural population and they posses 60 percent of the rural
wealth.
2) Heterogeneous Market:
a) It shows linguistic, religious and cultural diversities and economic
disparities. As many as 20,000 ethnic groups are present in rural India
and this poses a formidable challenge to the marketer.
b) There are 24 languages which varies every 100 km.
3) Income from Agriculture
Agriculture is the main source of income. Nearly 55 percent of rural
income comes from the agriculture and the income being seasonal in
nature is fluctuating. The type of crop production method of agriculture
and the amount of land directly influence this income.
4) Standard of living
a) Over 70 percent of the rural population is employed in small scale
agriculture and its related occupations
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b) The rural market is undeveloped, as the people who constitute it still
lack adequate
purchasing power. It is largely agricultural oriented, with poor standard
of living, low-per capita income.
5) Infrastructure facilities
a) The infrastructural facilities like Roads, Warehouses, Communication
system and financial facilities are inadequate in rural areas. Nearly 50
percent of the rural villages in the country are not properly connected
by roads.
b) Over 50 percent rural household has access to electricity as main
source of lighting but 46 percent use kerosene or other means for
lighting.









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Impact of Globalization on Rural Market
The impact of globalization has been felt by the Indian rural market as
much as the urban counterpart. Hence, we can see that today changes
are taking place rapidly in all walks of life and rural areas are no
exception to this. Improved infrastructure facilities, economic
liberalization, renewed emphasis on agribusiness and small industries,
fast changing agricultural technology, scope for commercialization of
agriculture, greater budgetary provision for rural people are few
reasons to mention. Moreover, various socio-cultural, psychological
and political aspects of rural life are also changing. Rural people today
are less fatalistic, less attached to religious beliefs, getting more
individualistic, achievement-oriented and aspiring than before. All this
has opened up new vistas for the marketers at least in the states, which
are leading in per capita income with a sustained growth, like Punjab,
Haryana, Maharashtra, Tamilnadu, Karnatka, Gujrat, Delhi and Western
UP etc.

Many features of rural India have been analysed by
National Council for Applied Economic Research (NCAER) and some of
these are as follows:
1. Rural India constitutes of 70 percent of India's total population.
2. It accounts for 56 percent of national income.
3. It contributes to 1/3rd of India's total savings
4. It accounts for 64 percent of total Indias expenditure.
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5. Rural economy is estimated to reach a size of Rs 18 trillion by 2012-
2013 as against Rs. 12
trillion in 2007-2008.
6. Rural consumers share of total ownership of low cost items like
bicycles, pressure cookers and watches during 2006-07 was 60 percent.
7. The share of rural India in the FMCG market is around 53 percent and
is expected to reach 60 percent in future. There are as many middle
income and above households in the rural areas as there are in the
urban areas.











Source: www.scribd.com
31

Impact of globalization on farmers
In India, roughly 90 percent of the rural population is engaged in
agriculture. In absolute terms they are nearly 600 million or 60 crore.
Since 1990, when Globalization was implemented in India then many
important changes were made in cultivation like-Multi cropping.The
shift from rain fed to irrigation dependent farming in many areas.And a
certain degree of development of productive forces like- in inputs like
HYV seeds Machinery, Techniques, Skills.
Due, to the opening of agriculture sector for the multinational
companies and big corporations. Consequently, the cost of agricultural
production has increased because cost of chemical fertilizers,
pesticides, irrigation etc. has increased in manifolds. The capital
intensive and import based agricultural activity have naturally started
displacing mostly poor, small and marginal peasants from land.
Multinational agri-business companies like Cargill, Pepsico, Monsanto,
ITC etc. Are A new class has emerged in rural India during the period of
globalization which has been benefited by this globalization. These are
mainly the rich and high middle class farmers.
Basically, these classes have more purchasing power and are the main
customers for durable and other luxurious goods in rural India. The
remaining poor and marginal peasants ironically who constitute the
major portion in rural areas have been subjected to deep trouble in the
era of globalization and their purchasing power are too low and has
been decreasing over the years. Small farmers in particular are least
benefited by this globalization whereas big farmers with their economic
and political influence, are able to reap the benefits of globalization.