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Rural India's purchase power

Associated Chambers of Commerce and Industry of India (Assocham) says that fast moving consumer goods (FMCG) worth $3.5 billion are expected to be sold in rural India by the end of this year.

The rural market accounts for half the total market for TV sets, fans, pressure cookers, bicycles, washing soaps, blades, tea, salt and tooth powder. Almost 70 per cent of rural households buy toilet-soaps and 38 per cent two-wheelers, Assocham's study based on feedback from leading players of the sectors said. The FMCG segment, in value terms, is expected to be over $18 billion as on December 31, 2007, of which the rural sector would comprise of a little more than one-fifth, the chamber highlighted.

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