• A country of villages. • Indebted farmers.

• Selfsufficient villages. • Rural cottage industries.

• Impact of caste system. • Problem of poverty.
• Illiterate people.
• Agriculture is major
• Problem of unemployment.
occupation.
• Problem of drought.
• Underdeveloped
• Barter system.
agriculture.
• Way of subsistence. • Importance in foodgrains
production.
• Share in GDP.
• Basis of domestic trade.
• Availability of • Source of government revenue.
employment. • Importance in international
• Importance in industrial trade.
development. • Stability in general price level.
• Role in economic planning. • Conducive to economic
development.
• Fisheries
• Horticulture
• Floriculture
• Dairying
The programme of Rural Industrilization

• The production based on agricultural produce

• By products
• Rural handicraft and cottage industries.
• Fruits and vegetables
• Supplementary to agriculture
• Requirement of low capital
• Potential of employment generation
• Utilization of locally available raw material
• Balanced regional growth
• Existence in rural area
• Applicability of simple technology
• Diversity in production
• Helps in reducing economic inequality
• Helps to raise rural income level
• Helps in eradication of poverty
• Increase in rural savings
• Growth in transportation and telecommunication
• Development in rural markets
• Boost to rural entrepreneurship
 Main characteristics of rural economy are:
1. Village is an Institution: The Village is a primary institution and it satisfies almost all the needs of the rural
community. The rural people have a feeling of belongingness and a sense of unity towards each other.
2. Dependence on Agriculture: The rural economy depends much on nature and agricultural activities.
Agriculture and allied activities are the main occupation in rural areas.
3. Life of Rural People: Lifestyles in villages are very simple. Public services like education, housing, health and
sanitation, transport and communication, banking, roads and markets are limited and unavailable. Rural people
rely much on faith, superstitions and traditional cultural practices. The standards of living of majority of rural
people are poor and pitiable. In terms of methods of production, social organization and political mobilization,
rural sector is extremely backward and weak. In recent years, the incidence of alcohol drinking has gone up.
4. Population Density: Population density, measured by number of persons living per sq. km is very low and
houses are scattered in the entire villages.
5. Employment: There exists unemployment,seasonalunemployment and underemployment in rural areas.
Unemployment refers to the situation of people with willingness and ability to work but is not getting employed.
Underemployment also called disguised unemployment is the situation of people employed in excess, over and
above the requirement. Disguised unemployment is a situation Where people work but no increase in
production. Both the situations are common in rural areas.
6. Poverty: Poverty is a condition where the basic needs of the people like food, clothing and shelter are not
being met. According to the 2011-12 estimates, About 22 crores of people in rural areas are poor and live below
the poverty line.
7. Indebtedness: People in rural areas are highly indebted owing to poverty and underemployment, lack of farm and
non-farm employment opportunities, low wage employment, seasonality in production, poor marketing network
etc. A famous British writer Sir Malcolm Darling (1925) stated that ‘An Indian farmer is born in debt, lives in debt,
dies in debt and bequeaths debt’. Since formal loan facilities are not available to the villagers, they depend on local
money lenders who, like a parasite, squeeze the villagers. Hence the villagers commit suicide frequently.
8. Rural Income: The income of the rural people is constrained as the rural economy is not sufficiently vibrant to
provide them with jobs or self – employment opportunities. Large proportion of labourers and skilled persons are
underemployed and the scope for increasing their income is limited.
9. Dependency: Rural households are largely dependent on social grants and remittances from family members
working in urban areas and cities.
10. Dualism: Dualism means the co existence of two exteremely different features like developed and
underdeveloped, organised and unorganised, traditional and modern, regulated and unregulated, poor and rich,
skilled and unskilled and similar contradicting situations in a region. These characteristics are very common in rural
areas.
11. Inequality: The distributions of income, wealth and assets are highly skewed among rural people. There are
number of historical, social, economic and political reasons behind the existence of inequality. Landlords and
landowners dominate the rural activities. Land, livestock and other assets are owned by a few people.
12. Migration: Rural people are forced to migrate from villages to urban areas in order to seek gainful employment
for their livelihood. This character of the development gives rise to the formation of cities. Enmity and Lack of basic
amenities in rural areas also push the people to migrate to urban areas. This is called’ double poisoning’ by
Schumacher, one side villages are empty, on the other side towns are congested. His book is ‘’ Small is Beautiful
“describes the dangers of the present kind of development.
• INDIA has been a welfare state since independence and the primary objective of all
government endeavors has been the welfare of its people.
• The policies and programmes have been designed with the aim of alleviation of rural
poverty which has been one of the primary objectives of planned development in india.
• It was realized that a sustainable strategy of poverty alleviation has to be based on
increasing the productive employment opportunities in the process of growth or itself.
• Rural development implies both the economic betterment of people as well as greater
social transformation.
• In order to provide the rural people with better prospects for economic development,
increased participation of people in the rural development programmes,
decentralization of planning, better enforcement of land reforms and greater access to
credit are envisaged.
• Initially, main thrust for development was laid on agriculture, industry, communication,
education, health and allied sectors but later on it was realized that accelerated
development can be provided only if governmental efforts were adequately
supplemented by direct and indirect involvement of people at the grassroot level.
• Mahila Kishan Sashaktikaran Pariyojana
• Pradhan Mantri Gram Sadak Yojana
• National social assistance programme
• Deen Dayal Upadhyaya- Grameen Kaushalya Yojana
• Saansad Adarsh Gram Yojana
• National Rural Drinking Water Programme
• Swachh Bharat Abhiyan RURAL DEVELOPMENT PROGRAMMES
 Objectives
• Rural BPL youth will be identified trained for self-employment.
• The trainings offered will be demand driven.
• Area in which training will be provided to the trainee will be decided after
assessment the candidates aptitude.
• Hand holding support will be provided for assured credit linkage with banks.
• Escort services will be provided for at least for two years soon to ensure
sustainability of micro enterprise trainees.
• The trainess will be provided intensive short term residential self-employment
training programmes with free food and accommodation.
• The government has decided to set up one rural self-employment training institute in each
district of the country.
• Each RSETI should offer 30 to 40 skill development programmes in a financial year in various
avenues.

• Current status- Currently 583 RSETI are functioning in the country.

 Objectives
• To enhance the productive participation of women in agriculture.
• To create sustainable agricultural livelihood opportunities for women in agriculture.
• To improve the skills and capabilities of women in agriculture to support farm and
non- farm-based activities.
• To ensure food and nutrition security at the household and the community level.
• To enable women to have better access to inputs and services of the government
and other agencies.
• To enhance the managerial capacities of women in agriculture for better
management of bio-diversity.
• The project aims at Improving the capacities of women in agriculture to access the
resources of other institutions and schemes within a coverage of framework.

• Current status
• Under this pariyojana 119 districts, 1,067 blocks and more than 20,362 villages have been
covered, with a total project outlay of Rs 822 Crore reaching out to more than 33.35 lakh
Mahila Kisans.
 Objective
• The primary objective of the yojana is to provide connectivity by way of an all-
weather road, to the reliable unconnected habitations as per core network
with a population of 500 persons and above in plan areas.
• The PMGSY will permit the Upgradation (to prescribed standards) of the
existing roads in those Districts where all the eligible Habitations of the
designated population size have been provided all-weather road connectivity.
With a view to ensure full farm-to-market connectivity, the programme also
provides for the upgradation of the exixting “Through Routes” and major rural
links to prescribed standards, though it is not central to the programme.
• Current status
• Under PMGSY-II, the projects for upgradation of 11,234 km roads
have been sanctioned against total target of 50,000km of such roads.
 Objective
• To reach out to and provide social security to vulnerable sections of
society, particularly those living below the poverty line.
• NSAP is a social assistance programme for poor BPL households for the
aged, widows, disable and also include provision for one time assistance
in the case of death of the primary bread winner in a BPL family.
NSAP scheme is 100% centrally sponsored scheme and administered by
Ministry of Rural Development but beneficiaries can be from both, rural
and urban areas. The scheme is implemented in the States/UTs through
Panchayats and Municipalities.
 Objectives:
Make NIRDPR the nodal advisory institute for skilling and placement
linked programs for rural youth in the country by 2020.
Enhance the competencies of stakeholders and functionaries in the
effective implementation of placement linked skills programs for the
benefit of the rural youth in India.
Be a knowledge repository of skilling initiatives and programs in the
developing world.
To be the leader in impact evaluation research of skilling programs.
 Objectives:
To trigger processes which lead to holistic development of the identified Gram Panchayats.
To substantially improve the standard of living and quality of life of all sections of the population
through –
a.improved basic amenities
b. higher productivity
c. enhanced human development
d. better livelihood opportunities
e. reduced disparities
f. access to rights and entitlements
g. wider social mobilization
h. enriched social capital
• To generate models of local level development and effective local governance
which can motivate and inspire neighbouring Gram Panchayats to learn and
adapt
• To nurture the identified Adarsh Grams as schools of local development to
train other Gram Panchayats
• Current Status
• Under this scheme, 661 Gram panchayats were
identified by members of parliament till February
2015, each state has identified a State Nodal
Officer to coordinate all the activities of the
programme at the state level.
 Objectives:
• 40 liters per capita per day (lpcd) of safe drinking water for human
beings.
• 30 lpcd additional for cattle in the Desert Development Programme
Areas.
• One hand-pump or stand post for every 250 persons.
• The water source should exist within the habitation / within 1.6 km in
the plains and within 100 mtrs. elevation in the hilly areas.
• Current Status
• Only 26.9 million out of 167.8 million households
(16%) in rural India have piped water, according to
data provided by the ministry of drinking water
and sanitation to the Rajya Sabha on February 6,
2017. Of 1.7 million rural habitations provided
drinking water under the National Rural Drinking
Water Programme.
 Objectives:
• To eradicate the system of open defecation in India.
• To convert the insanitary toilets into pour flush toilets.
• To remove the system of manual scavenging.
• To make people aware of healthy sanitation practices by bringing behavioral changes
in people.
• To link people with the programmes of sanitation and public health in order to
generate public awareness.
• To build up the urban local bodies strong in order to design, execute and operate all
systems related to cleanliness.
• To completely start the scientific processing, disposals reuse and recycling the
Municipal Solid Waste.
• Current status:
• The construction of individual household latrines under the
government’s ambitious Swachh Bharat Abhiyan have
recorded a growth of nearly 70 per cent in 2015-16,
increasing to 97.73 lakh individual toilets. The numbers of
new toilets for schools and anganwadi have, however, seen
a sharp decline in 2015-16.
• According to the latest Swachhta Status Report 2016 by
NSSO, 8,240 toilets were constructed in schools and 1,337
toilets in Anganwadi in 2015-16 as against 25,264 toilets in
schools and 8,377 toilets in Anganwadi in 2014-15.
1. Smart Cities
2. Swachh Bharat Mission- Urban
3. National Heritage City Development and
Augmentation Yojana (HRIDAY)
4. Pradhan Mantri Awas Yojana (PMAY)
5. National Urban Livelihoods Mission (NULM)
 Objectives:
• Elimination of open defecation
• Eradication of Manual Scavenging
• Modern and Scientific Municipal Solid Waste Management
• To effect behavioral change regarding healthy sanitation practices
Generate awareness about sanitation and its linkage with public health
• Capacity Augmentation for ULB’s
• To create an enabling environment for private sector participation in Capex
(capital expenditure) and Opex (operation and maintenance)
The Mission has the following components:
• Household toilets, including conversion of insanitary latrines into pour-flush
latrines;
• Community toilets
• Public toilets
• Solid waste management
• IEC & Public Awareness
• Capacity building and Administrative & Office Expenses (A&OE)
1. Current status:
2. Till December 2016, a total of Rs 1,628 crore has been released by the Centre
to states under various components of the Mission; 31,179 wards have
become Open Defecation Free (ODF). This has been made possible through
the construction of 29.18 lakh individual household toilets and 1.10 lakh
seats of community and public toilets seats.
 Objective:
• The scheme aims to preserve and revitalize soul of the heritage city to
reflect the city’s unique character by encouraging aesthetically appealing,
accessible, informative & secured environment.
The Scheme supports development of core heritage infrastructure projects
which shall include revitalization of urban infrastructure for areas around
heritage assets identified /approved by the Ministry of Culture, Government
of India and State Governments.
• Current status:
• With a duration of 27 months (completing in March
2017) and a total outlay of INR 500 Crores, the
Scheme is being implemented in 12 identified Cities
namely, Ajmer, Amaravati, Amritsar, Badami, Dwarka,
Gaya, Kanchipuram, Mathura, Puri, Varanasi,
Velankanni and Warangal. The scheme is implemented
in a mission mode.
 Objective
• The main objective of the Pradhan Mantri Awas Yojana is housing that is
affordable for all by the year 2022.
• It also intends to make it accessible to demographics that are specific such as
economically challenged groups, women along people belonging to minorities
such as Scheduled Castes and Scheduled Tribes.
• The Government's other goal is directly in association with some of the most
ignored demographics which include widows, lower income group members,
transgender and henceforth provide them with sustainable and affordable
housing scheme.
• Registration is mandatory to avail the benefits of this scheme which includes
the strict beneficiary names to be mothers or wives.
• Main features
• The scheme is mainly targeted at the urban poor
in India.
• There will be no caste based discrimination while
providing loans under this scheme.
• Facility will be available to scheduled castes and
scheduled tribes.
• Objective:
• The central objective of NULM is to reduce
poverty among the urban poor through the
promotion of diversified and gainful self-
employment and wage employment
opportunities, leading to increased income on a
sustainable basis. 5. National Urban Livelihoods
Mission (NULM) (Launched on 23rd September,
2013)
 NULM adopt a five-pronged strategy:
• Enhancing and expanding existing livelihoods options of the urban
poor;
• Building skills to enable access to growing market-based job
opportunities offered by emerging urban economies;
• Training for and support to the establishment of microenterprises
by the urban poor – self and group;
• Ensuring linkages to shelter, basic services and empowerment to
promote sustainable approaches to poverty alleviation;
• Building capacity of the urban poor, their institutions and the
machinery involved in the implementation of livelihoods
development and poverty alleviation programmes.
• Agriculture is the backbone of Indian economy. Agriculture is
the most important occupation for most of the Indian
families. In India, agriculture contributes about 16% of total
GDP & 10% of total exports.

• That’s reason India secured second position worldwide in

terms of farm output. About 75% people are living in rural
areas and are still dependent on Agriculture. About 43% of
India’s geographical area is used for agricultural activity.
• Total Geographical Area - 328 million hectares
• Net Area sown - 142 million hectares
• Gross Cropped Area – 190.8 million hectares
• Net Irrigated Area – 56.9 million hectares
• Provides food to more than 1 billion people
• Produces 51 major crops
• Contributes to 1/6th of the Export Earnings.
• Largest Producer of Milk, Cashew nuts, Coconuts, Tea,
Ginger, Turmeric & Black Pepper.
• Largest Cattle population-281 million
• Second largest producer of Wheat, Rice, Sugar and
Groundnut and Pulses.
• Third largest producer of Tobacco.
• Third largest in implementation of Mechanization
Although the share of agriculture in the total
national income has been gradually
decreasing on account of the development of
secondary & tertiary sectors, it still
contributed about 18% of nation income in
2006-07.(in 1950-51, it was 59%)
• In India, agriculture is the main source of
employment. Even in 2004-05, more than 56% of
the total labour force of India is engaged in
agriculture & depend on it for their
livelihood(1950-51:69.5%).
• It becomes evident from this fact that other
sectors of the economy could not generate
enough employment for the growing population.
• Agriculture in India has played an important role in
meeting almost the entire food needs of the people.
• The production of foodgrains in India has increased from
51 million tonnes in 1950-51 to 208.3 million tonnes in
2005-06.
• This has enabled the country to overcome the problems
of food grain shortages.The country almost self sufficient
in food grains & no longer depends on import of
foodgrains.
•Many industries like cotton industry, sugar
industries,jute industries etc,. depends on
agriculture for their rawmaterial
requirements.
•Moreover, workers engaged in various
industries depend on agriculture for their
food requirement.
• Agriculture provides markets for large number of
industrial products. Since about two thirds of India
lives in rural areas,there is a large rural purchasing
power which has created a large demand for all type
of industrial products.
• Green revolution has consideraly increased the
purchasing power of the large farmers in the recent
years.
• Through exports of
agricultural commodities like
tea, cotton, coffee, jute,
fruits, vegetables, spices,
sugar, oil, etc. in the past,
export of agricultural
products accounted for
about 70% of the export
earnings of the country.
• Various means of
transport like roadways &
railways get bulk of their
business from the
movement of agriculture
commodities & raw
materials.
• Through the direct contribution of
agricultural taxes to the central &
state government is not significant,
they get a significant part of their
total revenue in terms of land
revenue, irrigation charges, taxes
imposed on the commodities
purchased by the cultivators etc.
central government also earns
revenue from export duties.
• On over all view, India has always been benefited by
AGRICULTURE.
• Though the future of India is industrialiation, the
contribution of agriculture would always prove to be
vital for making India a powerful & stable economy in
the future.