Globalization and liberalization has greatly influenced the Indian economy and made it a huge consumer market. Post-liberalization many foreign companies have entered into India, dethroning the Indian players and dominating the market. India today has emerged as one of the perfect markets for foreign investors due to its vast market base. More and more foreign companies are investing in the Indian market to get more returns. This in-turn has led to change of policy among Indian players, especially with respect to the quality products that needs to be offered to the domestic customers. Most of the focus of Indian players has so far been on urban markets, but it was a mistake to neglect the much bigger, almost wholly untapped markets in rural areas, where about 68% of Indians live. In recent years, rural markets have acquired significance in countries like China and India, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. Existing rural expenditure on packaged goods is over $800 million, which actually represents only 1 percent of rural income. Few consumer goods companies have achieved any substantial penetration in rural areas. Heightening this sense of missed opportunity, disposable income in rural India has been steadily rising.