Theme: MARKETS rural India

Subtheme: contribution and role of IT perspective

PAPER

INTRODUCTION:

Many studies have shown that even today, about 70% of India’s population lives in rural areas. Today, rural development is essential for the development of the Indian economy. Indian government has recognized the role of rural development and contribution of IT in the development of rural markets. Many projects have been introduced in the rural area, with many future projects in the pipeline, which may be introduced by the government in the short period of time. Literacy in rural areas is classified in the position of highest priority. The trends indicate that rural markets are coming up in and significantly increasing twice as fast as urban markets. A study by NCAER (National Council of Applied Economic Research), the number of middle and upper income households in rural India is expected to increase from 80 million to 111 million by the end of 2007 than in urban India that is close to 59 million.

The rural market in India has shown impressive growth, due largely to changing lifestyles, improved communication network and the rapidly evolving patterns of consumer demand in rural areas. With the development of the rural market, the role of computers has increased by only providing the network to establish the basis for programs to upgrade technology in the rural sector. We see that the people who live in rural areas have a high purchasing power and greater openness to new technologies of the past. Evidence of higher purchasing power can be drawn from the statement of MD Shivakumar (Business Head – Personal Product Division, Hindustan Unilever Limited) has said that the money available for spending on consumer goods in rural India is 63,500 Cr. , Which is much higher than in urban India, which spends about $ 49,500 Cr.

Info in rural India, the government has already provided the kiosks (a version of rural cyber cafes) that provide services for basic communication, such as Internet and telecommunications. Modern information and communication technologies (ICTs) have been found to have a great potential to contribute. Projects Info-kiosks are very popular in the region of Andhra Pradesh, Delhi, Gujarat, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Rajasthan and Tamil Nadu and Uttar Pradesh, have shown a positive response in the development of the campaign.

Government takes serious steps to develop the rural market, according to which activities related to the development of rural infrastructure, food supply and work programs have facilitated the focus areas. It plays an important role in the realization of these specific programs of development of rural areas. Government has established several centers that spread the IT Web in rural areas through which people can be benefited and to exploit the available resources efficiently.

I. T. AND RURAL DEVELOPMENT:

Fluctuated applications, through which the development of rural areas may be possible with precision. Government has introduced a series of programs that people of rural India can come and use the IT enabled services and work in a more systematic. Some programs run by the government are:

B E-Mitra

This service is operated by the government of Rajasthan for the first time for its rural citizens, so you can deploy it enabled maximum profit. E-Mitra is the state government has initiated projects that will soon become very popular in the region. In 2002, two projects emerged, namely: Lok Mitra and Jan Mitra.

Where Jan Mitra is an integrated electronic platform through which the citizens of Rajasthan can invoke to obtain an advantage, if the desired information on any department in the kiosks, which is very close to the door there. The program initiated by the Government of Rajasthan has not only helped the government to reduce the burden of participating in each call, reduced waiting times for service and had to provide comfort to citizens as well with the launch of this service can easily obtain the information necessary to their door.

Lok Mitra is an urban Electronic Governance Project, which was launched in the city of Jaipur in 2002, helps people of Jaipur (other cities now too) to pay bills on-line (earth, water, bus tickets and BSNL) leading citizens to save time waiting. This service also ensures the people that their money goes directly to the government and provides a feeling of security for the payment of their invoices.

b Community Centers:

The program is designed specifically for the provision of Internet access and IT enabled services to citizens across the interface between government and citizens can be configured. These centers connect seven northeastern states namely Arunachal Pradesh, Assam, Manipur, Mehalaya, Mizoram, Nagaland and Tripura. The center helps to gain connectivity when unsuitable environmental conditions. The centers are often referred to CIC, which are usually at school, university or government office. People can come to access the Internet, and Internet access, a nominal amount of eta ‘pay through which the daily expenses of the centers are maintained.

b Wi-Fi projects:

Wi-fi in a project whereby some countries (Uttar Pradesh) are connected to the Internet is digital Ganges Plan (DGP). Through the use of PGD for wireless networks has been created, the program has helped people living in villages in India, who access the Internet through which information on various subjects can be collected to be used at the same time, people living in rural India can be updated with new and innovative technological changes undertaken at national and international markets. For example; Bimare Jankari is a portal through which information on all diseases and health problems are available and Digital Mandi is available as a portal where all information regarding agricultural commodities are available. This portal provides information on commodity prices and their relative value.

b Drishtee:

Drishtee is present in 5 states and is currently available in six districts. This is a private company, which was previously designated as the Cyber Edge, which has the main task of developing the modules. It is present in Bihar, Haryana, Madhya Pradesh, Punjab and Rajasthan. It is widely adapted in the Panchayat or the bazaar. They prepare the module for the poorest section of society that fails to understand the international language. The modules are designed for rural and semi-urban areas in particular.

b Gyandoot:

E ‘was created in January 2000. This is a form of e-governance based solution designed for rural citizens. The project was initiated by the Government of Madhya Pradesh. Gyandoot meets the need of the villagers, providing information on current rates of agro-commodities and the rate of land. Info Gyandoot Each kiosk caters to about 15 panchayats and 30 villages. The module is designed to deliver profitable and sustainable distribution model to the population.

b TARAhaat:

It was developed by an NGO (non governmental organization) with the vision to make Internet structure in rural India. This is a franchise business model that attempts to generate income, focusing on marketing services through the module (placed special emphasis on local applications). It was launched in the Punjab region, with the introduction of various centers, known as Kendra, which are connected to each other through the Internet connection with line installation. Kendra also has the power backup in case of electricity supply is interrupted. The kiosks provide information on-line and online information services in education, opportunities exist in the market and other useful information to villagers. TARAkendra are very popular among the local population, providing information in local languages and portal has been designed into a framework that semi-literate people can also understand, without any difficulty. Various services they provide TARAkendra are:

O TARABazar (For product information)

O TARAdhaba (provision of connectivity)

O TARAdak (connect to remote relatives)

O TARAgyan (educate rural youth on various issues)

O TARAguru (tutoring assistance and advice)

O Taravana (orders for delivery to remote locations)

and many other services are also provided.

b E-Seva Rural

It ‘was launched by the Government of Andhra Pradesh. Was initially implemented in West Godavari district to provide a simple e-governance. The centers are designed to provide better structures of governance for the people of rural India. The popularity of e-seva can be estimated from the fact that during the year 2003, over 400 million rupees have been collected only for the payment of electricity. With the success of e-seva in the payment of electricity bills, the government is ready to do so presented for collection of telephone bills and local legislation. E-seva is gaining popularity day that passes, as it helps people use the benefit to obtain certificates of their doors, which is both relaxing and reliable.

b Bhoomi:     

The government of Karnataka to keep documents relating to land that is entered. The Department of Revenue in Karnataka has computerized 20 million records of land belonging to 6. 7 million farmers in the state. With the introduction of the program, farmers are free to give the bribe, and are protected against harassment. Publishers can easily obtain the record of rights, tenancy and crops (RTC) by submitting a minimum charge of Rs 15.

National Computer Center (NIC) through which the copies of documents online software available land is not developed software Bhoomi. By providing an online application, farmers get a registration number on-line through which further treatment can be done. In software, connectivity is via the local network through which all clients are connected to hubs.

With the growing popularity of the project, the Indian government has decided to bring the project to other parts of the country also, namely, Kerala, West Bengal, Sikkim, Tripura, Punjab, Haryana, Madhya Pradesh, Himachal Pradesh, Uttaranchal, Gujarat, Assam, Orissa, Rajasthan and Pondicherry.

b e-Choupal:

It was designed especially for farmers in India. With e-Choupal, farmers living in a remote area of the country and able to have direct contact with the consumer can request to have direct contact. It provides e-procurement system through which farmers can access the latest information and updates (local, national and international) in relation to different agricultural practices. It provides real time information and knowledge of farmers through which farmers can make better decisions and can have direct contact with the customer, reducing the loss by moving through the distribution channel through.

E-Choupal has already become the largest initiative among all Internet-based interventions in rural India. E-Choupal is present in 36,000 villages through nearly 6000 kiosks in nine states. ITC (Indian Tobacco Company) plans to extend the concept of e-Choupal in 15 additional states in India.

b Aksh:

E ‘active mainly in northern India, is a society of fiber optic cable, with basic skills in the creation and maintenance, if the cord. Aksh is licensed to secure cables in rural areas. He collaborated with first Drishtee for the maintenance of the cabins, but with changing times; Drishtee Aksh and divided into various service offerings. While Urban Area had a rate of penetration of cable television, have left rural areas unserved. The fact behind the low percentage of cable television in rural areas than in urban areas is due to the fact that in rural areas there is a limited number of households that can afford cable bandwidth provided by Aksh supports a wide range of services (including interactions including video) that lead to increase the level of exchange of information between people living in many parts of rural India.

b N-Logue

N-Logue is enabled in southern India and its advantages are entering in the north. The main impetus came from IIT-Chennai. This is a non-profit organization responsible for the provision of IT services by rural (including hardware and software) with connectivity and application throughout the countryside. Is working with the WLL technology, construction and maintenance is costly and connectivity is limited to a certain area, but has the ability to provide connectivity with a wide range of services that provide the installation item and to overcome the problem of dial-up connection errors. N-Logue is also supported by IIT-Chennai, which prepares a series of software in local language for it in a short time for convenience and comfort. He also added the facility of web-cam through which the remote diagnosis of various problems that can be done. Tamil Nadu government has supported the functions of N-Logue (especially in Madurai and its district Nellikuppam). N-Logue for the costs of connectivity and is relatively popular in the southern region because of its functioning easy connectivity and training to manage applications.

TILT rural areas in India:

Generation of rural income in India increased significantly in recent years. The trends have seen twice the rate of growth of rural market compared to urban markets. According to a McKinsey study conducted in 2007, the rural India, with a population of 627 million euros (about 74. 3 percent of the total population), would become the largest market in the total consumption in countries like Korea Southern Canada or in another twenty years. It has also increased by almost four times its current size in 2007 was estimated at 577 billion U.S. dollars U.S.. Several sectors have shown their passion for the rural sector of the market because of the possibility of more opportunities.

1. FMCG

According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the number of rural households using fast moving consumer goods (FMCG) products has increased from 136 million in 2004 to 143 million in 2007.

In a report by AC Nielsen market research, in the month of April-May 2008, it was noted that rural markets have shown a rapid growth rate. The sector of consumer goods in rural areas should grow by 40 percent against 25 percent growth in urban areas.

2. Insurance

According to a report entitled “Insurance in the next 2 years, the Chambers of Commerce and Industry of India (ASSOCHAM), in May 2008, the size of the insurance sector was estimated at U.S. $ 12. 8 billion and it is likely that a unprecedented growth of 200 percent to U.S. $ 51. 2 billion in 2009-10. Rural India May offers a business opportunity worth $ 23 billion for insurance companies, if the segment could be wooed with innovative plans other premiums available

3. Retail

According to a study conducted in September 2007 by the Confederation of Indian Industry (CII) on the Indian rural retail sales opportunities in rural retail markets was estimated at more than U.S. $ 34 billion for the year 2007. This figure should reach 43 billion dollars in 2010 and go up to U.S. $ 58 billion in 2015. The rural markets of 2008 increased to 25 percent of the growth rate of 7-10 percent of the consumer market in the urban retail.

4. Cars

The Indian Automotive Industry has a current turnover of U.S. $ 34 billion. However, the automotive market remains untapped in rural India has a strong purchasing power. Nearly 50 percent of the market in rural India, which includes 220 million households, or potential buyers. Two-wheeled motorized belts rural penetration is still very low, with less than 10 percent of households own a motorcycle.

5. Pharmaceuticals

The pharmaceutical market in India is considered one of the fastest growing in the world. In 2006-07, this market was worth over $ 7 billion to the rural segment, with a considerable share of this market. According to some estimates noted that while small towns contribute 20 per cent for the pharmaceutical market in the country, rural areas account for 21 percent. In 2006-07, the Indian rural market has been estimated at about U.S. $ 1. 4 billion, an increase of about 40 per cent in 2006-07 compared to 21 percent over the previous year.

6. Consumer durables

A survey by the Federation of Indian Chambers of Commerce and Industry (FICCI) said that the area of consumer durables is all set to join the 12 percent growth in 2008. The rural market is growing faster than urban markets, although the level of penetration in rural areas is much lower. The Indian rural market, which represents almost 70 percent of the total number of households grew by 25 percent a year, while the market for consumer durables in urban areas reflects an annual rate of 7 to 10 percent.

* Source: IBEF Report, August 21, 2008

CONCLUSION:

The face of the Indian rural market can be transformed by the deployment of IT The document provided a brief description of the various services offered in rural areas of several states in India and, simultaneously, the performance of such services. All services are differences in the degree of connectivity, the service level offered, and the organizational structure of the base. It is clear that the range of IT services has enabled proportion increases rapidly in rural India. The fact behind this growing interest in organizations (profitable and unprofitable) to capture the rural markets and increasing level of education and the interface of the rural market. IT enabled services are growing at a rapid pace and offer more services to the rural population, with the common ground of having to increase connectivity and thus creating greater market access in rural areas.

The increase in services to rural population (in terms of services) will result in an overall improvement of society on the one hand enhance the data updated market and provide the latest news and technological development organizations on the opposite side, creating new market opportunities more for themselves and the adjustment of market prices.

Development of Rural Development Department of Communication and good IT infrastructure services are essential and the use of fiber optic networks. IT services must be developed with reference to infrastructure for rural development. Internet services, with mixed support services to customers should be provided in rural areas, which may increase the rate of acceptance of services by the rural populations.

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