The Union Budget for 2011 has evoked mixed reactions from the advertising 
industry. Some reactions being positive and some negative. But, by and large, the general consensus is that many advertising agencies expect companies to spend a large amount of their marketing budgets on rural communications. This is so because of the sheer number of rural population being 128 million, almost three times that of the urban population and the announcement of a large number of rural development schemes.
Advertisers and marketers are slowly realizing the potential of the rural markets in India and are making attempts to focus their marketing and advertising initiatives to feed off the rural markets.
Advertisers have started looking at rural markets seriously, given that an increasing percentage of sales are coming from rural belts in many categories. The rural market accounts for half of the total market for TV sets, fans, pressure cookers, bicycles, washing soap, blades, tea, salt and toothpowder. What is more, the rural market for FMCG products is growing much faster than the urban counterpart. Rural India has a large consuming class with 41 per cent of India’s middle-class and 58 per cent of the total disposable income.
In addition, with respect to the budget, rural reforms clearly are on top of the list where there is a clear scaled up flow of resources. Increase in farm credit, benefits to all tax payers, subvention of 3% to farmer paying loans on time are all steps in creating a strong base that can be built on.With all this and more it won’t be a surprise but just a matter of time before more and more companies jump on the rural marketing bandwagon and tap the rural markets in an aggressive manner.
