Page 45 - Banking Finance January 2025

ARTICLE

participation has mostly come through self-employment. In 3. Livestock and Allied Sectors: The livestock sector, in-
2022-23, 71% of the rural working women were self-em- cluding dairy, poultry, and fisheries, is emerging as a key
ployed. Of these, 43% worked as 'helpers in household en- growth driver in rural areas. The survey emphasizes the
terprise', for which they did not receive any regular wages. potential of these sectors in generating employment
and improving rural incomes. Government schemes like
In 2022-23, 21% of rural working women sought work as the National Livestock Mission and the Pradhan Mantri
labourers and 8% had found work with regular wages. Ac- Matsya Sampada Yojana are promoting the develop-
cording to PLFS, the unemployment rate for women has gone ment of these sectors.
down in rural areas from 4% in 2017- 18 to 2% in 2022-23. 4. Rural Infrastructure Development: The government's
10 The unemployment rate for men in rural areas has gone
focus on rural infrastructure development. Initiatives
down from 6% in 2017-18 to 3% in 2022-23. However, the like the Pradhan Mantri Gram Sadak Yojana (PMGSY)
India Employment Report 2024 by the International Labour and the Jal Jeevan Mission are improving connectivity
Organisation observed that in 2022, the labour force partici- and access to basic amenities in rural areas. These in-
pation rate for young men (61%) was almost three times vestments are expected to boost economic activity and
higher than young women (21.7%) in both rural and urban enhance the quality of life for rural communities.
areas.11 The report also noted a gap in average earnings of
men and women in both rural and urban areas. In 2022, the 5. Rural Entrepreneurship and Micro, Small, and Me-
dium Enterprises (MSMEs): The survey recognizes the
gap in income between male and female workers was high-
potential of rural entrepreneurship and MSMEs in driv-
est for self-employed workers in rural areas.
ing economic growth and job creation. Government
programs like the Pradhan Mantri Awaas Yojana (PMAY)
Trends in Growth or Decline: and the Mudra Yojana are supporting the growth of
A critical analysis of data over the last two decades reveals these enterprises. Encouraging rural entrepreneurship
mixed trends in the rural economy: can help diversify rural livelihoods and reduce depen-
1. Agricultural Growth and Diversification: Agriculture dence on agriculture.
remains the mainstay of the rural economy, contribut- 6. Digital Inclusion and Financial Empowerment: The
ing significantly to overall growth. The survey highlights
survey emphasizes the importance of digital inclusion
the importance of crop diversification in mitigating risks
in empowering rural communities. Initiatives like the
and enhancing farmers' incomes. Agricultural GDP Pradhan Mantri Jan Dhan Yojana (PMJDY) and the Digi-
growth, which was at an average of 2-3% in the early
tal India program are expanding financial access and
2000s, has shown signs of variability due to factors such digital literacy in rural areas. Digital inclusion can facili-
as monsoon dependency and climate change. Accord- tate better access to information, markets, and ser-
ing to the Ministry of Agriculture, the sector grew at
vices, improving the livelihoods of rural people.
4% during the period of 2011-2015 but saw a declining
trend in subsequent years, partly due to structural is- Challenges in Rural Development in
sues and market fluctuations. Government initiatives
like the Pradhan Mantri Kisan Samman Nidhi (PM- India
KISAN) and the National Food Security Act (NFSA) have Rural development in India faces several chal-
played a crucial role in supporting rural livelihoods. lenges:
1. Economic Challenges
2. Progress in Poverty Reduction: As per Economic Sur-
vey 2023-24 the significant strides made in reducing Poverty and Inequality: A significant portion of the
poverty in rural India by the Indian Government. The rural population lives below the poverty line, with
national Multidimensional Poverty Index (MPI) has been vast disparities in income and wealth distribution.
halved from 0.117 in 2015-16 to 0.066 in 2019-21. Ru- This limits their ability to invest in education,
healthcare, and other essential services.
ral areas have been instrumental in driving this decline,
with states like Bihar, Madhya Pradesh, Uttar Pradesh, Agricultural Dependence: The rural economy is
Odisha, and Rajasthan witnessing substantial improve- heavily reliant on agriculture, which is often vulner-
ments. able to fluctuations in rainfall, crop prices, and

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