Indian economy is getting pace and recognized among the fastest growing economy of the world and It has been the topic of discussion in the last few years. As in India only 25% of the population is living in urban areas, and the remaining people who lives in rural area are not getting economic benefits from this evolving leadership status and associate growth of the country. As a result, rural poverty level in not decreasing with much pace.So innovative thinking is required to change the status of the India’s rural people.
A significant opportunity exists in rural India. In recent years it has been observed that FMCG (Fast moving consumer goods) consumption growth has outstripped the urban area. Due to some government programme like MGNREGA, purchasing power of people has been tremendously increased. Now the rural markets are on the radar of multinational companies. Better connectivity in terms of roads and communication, paving the way for the rural entrepreneurs and rich farmers. Now they can sell their product to the urban market directly. Simultaneously, the wage rate for private work in rural India has also gone up because of the higher wages paid under the Employment Guarantee Scheme.
The most important thing about the rural economy is that it is very large, almost co-terminus with the Indian Economy. This is so because it is massive in magnitude in many respects. Rural India is two-thirds of India’s population, lives in 638,365 villages and earn aprox. 33% of the national income.
The fact about rural economy is composed of many and large variety of economic activities. One, the largest component and the base of the rural economy is agriculture. It consists of crop cultivation pertaining to various kinds of cereals, pulses, oil seeds fruits, vegetables etc. Together with its allied activities like livestock which provide milk and milk products, meat and meat products, it constitutes a major supplier of food and food articles, raw materials, and finished and finished products. Still another sector of agriculture consists of fishing, constituted of both inland fish and marine fish. The rural economy also includes village/rural industries. These are mostly traditional industries and artisan based. There should be a greater focus on the rural economy if India is to become a developed country. An attempt has to be made to change the various dimensions of the rural economyAdvancement of India’s Rural Economy is very essential for Growth of the nation. However finance and awareness are still the biggest problem for development of rural economy despite it being innovative. However, in age of information technology, people are getting information related to everything very easily and it is making the base for new entrepreneurs in rural area. Few government initiative like Jandhan Yojana, credits for small industries, skill India programme, Pradhan Mantri Gram Sadak Yojana and rural infrastructures are becoming the key factor for the development in rural area.