Rural India is where all marketers are heading now

Consumer goods companies are expecting demand to get a boost in rural markets from Budget sops and therefore they are working on their strategies for the rural markets.

The prime focus will be affordability for the companies as they target the rural folks.

"With its pro-rural, bottom-of pyramid focus and (the Budget) being non-inflationary, we expect growth will return to rural markets after a gap. This is a pro-consumption Budget for the rural economy and, after the setback of demonetisation, it helps especially for companies like ours with a strong rural focus,” Dabur chief executive Sunil Duggal, told ET.

In the Budget 2017, Finance minister Arun Jaitley proposed to spend more on the rural side with an aim to double the farmer's income in five years. According to the industry experts, this along with the cut in income tax rate targeting mainly the small tax payers, focus on affordable housing and infrastructure development will provide multiple growth drivers for the hinterland.

Rural demand has been slow to rebound after demonetisation compared with the rest of the country. With the Budget balm, experts expect the situation to change fast.

Britannia managing director Varun Berry said the biscuits maker will renovate its entry level Tiger's brand.

"There will be an overall thrust on all Rs 5 and Rs 10 packs in small towns and villages. Distribution inroads in rural will remain our biggest initiative," Berry told ET.