New Delhi: In order to tap India’s rustic population, administration and private sector companies will have to concentrate on specialised infrastructure. India’s rustic population accounts for more than $100 billion in consumer spending certainly the largest buyers in the country.

A report prepared by CII and YES Bank reported that diverse population, hapless infrastructure, seasonal demand, multifaceted buying behavior and price predisposition are the main challenges that companies projecting to enter rural retail need to overcome.

The report titled ‘Rural Retail: The next phase in retailing’ also emphasizes that once the segment develops there would be a lot of constructive propositions.

Kalyan Chakravarthy G K D, country head Food and Agribusiness Strategic, YES Bank, said, “While rural sector is at a nascent stage, rural retail will have a direct impact in boosting infrastructure, employment, increased revenue and tax generation and check rural migration.”

Additionally the farmers, mediators and producers will also experience a major alteration, which would bring a optimistic impact to the rural retail, states the report.

Rajesh Gupta, DCM Shriram President said, “Rural folks have to be seen from the background, that what and how much they were exposed to.”

He also stressed the value of building trust in rural retail.

“Unlike urban retail, in rural retail there are fixed set of customers and cannot cheat them. The area that would be addressed is within 25-30 kms, unlike in urban retail where customers come from far flung areas,” Mr. Gupta added.