• Geetha M L

Modern Multinational companies (MNC) treat India’s rural market as a gold mine. Two-thirds of the country's one billion consumers live in rural India. Nearly half of the national income is generated in Indian villages. Rural market in India is showing upward trend due to increase in income and consumption level of rural people, enhanced budget allocation for rural development by the Indian Government, and improved transport and communication in rural India. Indian companies failed to recognise these opportunities and cater to the needs of rural masses. Some of the large multinational companies after thorough market research have implemented innovative projects to tap the Indian rural market and to provide value added goods and services to the door steps of rural people. MNC products are capturing a sizable portion of rural consumer. Research on spending pattern of rural consumer in 2009 showed that rural consumer spending on MNC shampoos increased to (70%), washing powder (60%) and toothpaste (112%). In the light of above, a detailed study of different MNCs operating in rural India, as a result opportunities and challenges faced by Indian economy is made. Present paper is descriptive in nature, based on secondary data from journals, research reports, magazines and internet sources tries to analyse some of the multinational companies’ strategy to penetrate Indian rural market. It highlights initiatives taken by some of the multinational companies to tap Indian rural market and its results. It also tries to discuss problems and prospects for rural population as a result of MNCs operating in rural India and offer suggestions for improvement.

Key words: Multinational Companies, Rural Market, Innovative Projects.

"ROLE OF MULTI NATIONAL COMPANIES IN THE DEVELOPMENT OF RURAL ECONOMY ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.2, Issue 11, page no.816-822, November-2015, Available :http://www.jetir.org/papers/JETIR1701C28.pdf

"ROLE OF MULTI NATIONAL COMPANIES IN THE DEVELOPMENT OF RURAL ECONOMY ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.2, Issue 11, page no. pp816-822, November-2015, Available at : http://www.jetir.org/papers/JETIR1701C28.pdf