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Introduction

A powerhouse in global IT and process outsourcing, and with a vibrant and growing industrial sector, India is well and truly on the path to economic prosperity. But, is it truly developing itself, is a question one needs to ask and answer.
Close to 70% of India’s population resides in villages, and are in the rural segment. With India truly on the path of global IT leadership, it first needs to look into itself and consider that does this progress include rural population or not. With the advent of E-commerce, one area where progress of India is consistently slow is its backbone which is rural India. One reason for the same is that urban businesses have all the advantages of technology, while rural businesses fail in the same. Rural India has not been able to take advantage of ICT (Information and Communication Technology). In this paper, we will discuss the benefits rural population can derive from E-commerce. We will also take up cases in India and other countries where e-commerce has made considerable difference in the way people live. Lastly, we will also discuss steps which need to be taken by India to become a true global powerhouse, wherein progress will be evident even in its remotest part.

E-commerce

E-commerce can be defined in broader terms as not only trade in goods and services across internet but also new ways of conducting business and communicating with customers, suppliers and colleagues. One of the motivators for doing business in urban areas is greater commercial variety and access to technology. Moreover, the hindrance in choosing rural areas for doing business is distance e.g. proximity to the nearest airport or dock which can be necessary for some companies, location constraints e.g. skilled labor, and ready availability of information. One of the assumptions we would be taking in this paper would be the ready availability of infrastructure, especially telecom.

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* Contributed by: -
Nishant Waghela,
Alumni of IIM Ahmedabad,
Working at SBI, Mumbai.