Growth of Banking and Development in India
The world’s second largest populated country, India, is the apple of the eye for the world now. The world economies are seeing it as their potential market. This has been going on since quite some time now, ever since 1991 reforms of liberalization, globalization and privatization. Indian markets in urban areas have grown appreciably and are on the verge of saturation, so corporates have started tapping rural markets, since more than 60 per cent of India’s population lives in rural areas.

During this global meltdown and fall of exports, if the Fast Moving Consumer Goods (FMCG) sector has been able to show rising quarterly growths, it is because of the Rural Markets and their rising spending power, which have not been affected by this meltdown. If we look at the strategies followed by Rural Marketers in the FMCG sector, it is to sell many small sachets of Rs. 2 shampoo pouches, Rs. 5 Maggi packs and the Rs. 5 chota Pepsi, because here, the strength lies in volume sale, considering the large consumer base in these rural markets which won’t spend altogether at once on buying large family packs of 500ml shampoo or super saver packs of Maggi or a Pepsi pet bottle of 2 litres.

Therefore, consumption trends followed by the rural Indian are considered to be the driver of future growth of companies. And this trend of tapping rural markets is visible across all sectors now, be it FMCG, IT, Banking, education etc. For example, today, India is in better state than China because our GDP is less dependent on exports as compared to them, where maximum revenues come from exporting to the European and US markets. Thus, tapping the rural markets is most important for us to be a self sustaining economy.

India has been considerably shielded from the global recession. Firstly, we are not very dependent on the exports for