Villagers living in conditions of extreme poverty, ill-health and illiteracy are ill-organized for effectively participating in programmes of their own betterment.

If rural growth is ignored the gap between haves and have-nots will further widen giving rise to host of socio-economic problems. For example: -
o Choking of cities due to mass exodus to urban centre
o A large number of children are displaced with their parents from villages to towns; end up as child labor, street beggars, petty thieves and child prostitutes

Finally, it makes business sense to develop rural markets: The dominant assumption that the poor have little purchasing power, and are not a viable consumer base has been shattered by Prof. C. K. Prahalad's best selling book, The Fortune at the Bottom of Pyramid. In India alone, there are 178 million poor households, with a combined $378 billion (Rs. 16,63,200 crore) in income.

3. Rural India and E-Commerce - SWOT Analysis

Rural India has its own strengths and weaknesses. E-commerce is also struggling to gain a foothold in India. Below is presented a combined (Rural + e-commerce) SWOT analysis.

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* Contributed by -
Rohit Garg,
Final Year, PGDM,
S. P. Jain Institute of Management & Research, Mumbai.