Rural distribution involves creating, organizing, pricing, and distributing products and services to ensure that rural residents have access to essentials at reasonable costs.
Over 3.2 million square kilometers, 610,000 villages make up rural India. With 41% of India's middle class and 58% of the nation's total disposable income, the 700 million Indians who live in these villages make up a sizable consumer class.
Increased funding for rural development and the National Rural Employment Guarantee Scheme (NREGS), which is facilitating a greater flow of funds into rural India, are two important policy measures taken by the Indian government.
An increase in creating village-based micro-businesses, which will boost the local economy, aid in village capital building is the need of the hour.
Now farmers can access useful information on the weather for the day and the following five days, can have access to market rates, contact with dealers, agricultural scientists, or experts for gaining knowledge about their agricultural produce using the "Kisan Suvidha" app. Such programs initiated under the rural distribution has led to an increase in getting various types of banking services from 54% in 2014 to 80% in 2018.
Governments, regulatory authorities, financial service providers, and fintech companies must work together to fully realize the potential of a digital rural India as smartphone adoption and mobile data usage increase in rural India.