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Enterprises all over the globe have either created or are in the process of creating the E-commerce front-ends to their traditional businesses models. Developing countries are likely to lag behind and fail to reap the benefits of ICT revolution and e-commerce opportunities fully if the policies to provide access to the technologies, education, skill development, e-commerce regulation and consumer protection are not put in place in time.

Indian Rural Economy

Agriculture is the life-blood of the rural economy. About two-thirds of the Indians are engaged in the agricultural operations. But they account for only a fourth of the country's GDP. The tele-density of the rural population in India is 0.5 per thousand. This is due to the unavailability of information and communication technologies. The type of products they offer is mostly a commodity. The commodities largely grown in the rural areas are rice and other crops. Since these goods are staple goods, the scope for differentiating one's product from another is generally difficult. Achieving differentiation through production process is also not possible. Though it has almost all the characteristics of the perfect market, it is lacking in one of the main features of the perfect market, i.e., availability of information across the markets. Here comes the role of information and communication technologies. By making available a spectrum of right information across the world at the right time just by a click at the mouse. Internet has the potential to make farm market as close to perfect competition as possible.

A Swot Analysis

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* Contributed by -
Krithika R. & Thiruvathal M.,
MBA - II Year,
Thiagarajar School of Management, Madurai.