RURAL INDIA-Rural Economy

INTRODUCTION
The economic life of rural people is based on agriculture and related activities. Other farm activities are allied activities like dairy, poultry and fisheries. Rural money market is characterized by both formal and informal sources. Although the countrys developmental activities are trying to improve the economic life of the people, a large part of the population is still poor.

AGRICULTURE
The share of agricultural sector in GDP accounts for 52% of the employment in the country. Among total workers: 32% are cultivators 26% are agricultural laborers 4% are working in household industries 38% are other workers engaged in trade, commerce, construction, & repair

IN RURAL AREAS: 40% of total workers are cultivators 33% are agricultural laborers. Proportion of worker in agricultural sector has shown a decline from: 66.85% in 1991 to 58.2% in 2001 This decline is due to shift of workers more towards secondary and tertiary sectors, and this resulted in increase in sec. and tertiary sectors, which indicates the sector shift in the economy of the country.

NON-FARM ACTIVITIES
These are the other activities which provide employment in rural areas could be summarized under Rural Non Farm Sector (RNFS). RNFS includes all non agricultural activities. RNFS provides: 1. Employment to small and marginal farm households 2. Reduce income inequalities & ruralurban migration.

Hindrances to this sector

Electricity and communication 2. Lack of sufficient skilled labors 3. Adequate access to credit 4. Information and training facilities Service creates 60% of RNFS jobs Manufacturing, construction & mining are imp activities under RNFS are Cotton textile, woolen textile, pottery, food, tobacco, metal products.
1.

There is an extensive linkage between agriculture and non-farm sectorsGrowth in agriculture sector
LEADS TO

more raw materials for processing and trading in rural non-farm sector
WHICH CREATES

greater demand for inputs and services Produced in RNFS

GDP & PER CAPITA

Indias GDP at constant prices rose from: Rs.2,24,786 crore (1950-51) to Rs.10,83,572 crore (1990-91) to Rs.18,64,300 crore (2000-01) to Rs.41,54,973 crore (2008-09) Per capita : Rs.5,708 (1950-51) to Rs.11,535 (1990-91) to Rs.16,172 (2000-01) to Rs.31,821 (2008-09)

RURAL MONEY MARKET

RURAL MONEY MARKETS

FORMAL RURAL MONEY MARKETS INFORMAL RURAL MONEY MARKETS

Commercial banks
NABARD, SIDBI

Regional rural banks

Andhra Pradesh Gr. Vikas Bank

Co-operative banks
Cooperative Bank Of Rajkot

Moneylenders Landlords and others Traders and commission agents Relatives Self-Help Groups
Care India

KEY STATISTICS FOR RURAL INDIA

Rural India constitutes 69% of India's population. 86% of rural population earns less than $2 per day (most of Indian BOP households earn $67 per month). Only 0.29% of the male population has reached the graduation level (0.04% for women) and 6% of the rural males are educated up to the middle level. 70% of the disabled in India lives in rural areas. Nearly 30% of the villages in the country do not have all weather roads, making physical

RURAL POVERTY

Concept of rural poverty