What are the challenges faced by rural India?

Indian Rural Economic Constraints

The economy is a term derived from the Greek word 'Ecos Namomai' means household management. 'The economy is defined as a social sphere that emphasizes the practices, discourses, and material expressions linked with the manufacturing, usage, and managing the supplies'. It is inclusive of social realms of business and trades.

Rural Economy

India is one of the largest populated countries. Indian economy is developing and stands 5th on the global rank. The contribution of the rural economy is prominent as a vast population is still an inhabitant of rural areas.  

The rural economy is governed by agricultural practice. Therefore, it contributes substantially to the Indian economy. As it is involved in revenue generation. However, the industrial revolution generated a nexus for other fundamental elements of the economy. Rural areas are generally an underdeveloped area. But looking at the current scenario of a pandemic, the Indian rural economy is being the backbone. As massive reverse migration is seen during the COVID situation, knowing that the village lifestyle is cheap and sustainable.

The rural economy encompasses agricultural, forestry, fishing and aquaculture, handicrafts, dairy, tourism, mining, transport, trade, repair and construction, community and personal services. 

The challenges in rural areas are massive. Some general challenges are Illiteracy, unemployment, malnutrition, lack of infrastructure, transportation, medical facility, fundamental needs (electricity, drinking water, sanitation, communication), and geographical inaccessibility. While person-specific challenges are carelessness towards knowledge, equipment, storage facilities, limited access to advanced tools, logistics, financial constrain, migration for employment, traditionalism, and conservatism.

Now, let's delve deep into crucial components of economic activities. 

Agricultural or farming based economy

Soon after independence, the country was facing a crisis and agriculture was the only sector being a savior for the Indian economy. To combat the hunger monster of the second largest populated country in South Asia, it has to focus on agriculture. Agriculture plays an important role in our economy. Today the Indian agronomy is doing far well. However, the challenges in farming are still there. Unpredicted rain falls, draught, irrigation issues are environmental factors linked to Indian climates that hinder the overall economy. Looking at the rural challenges, lack of infrastructure, and transportation that can save the harvest and store them safely is a matter of concern. The loss due to environmental and biological factors (insects, rodents, etc.) impacts hugely to hard earn. Transportation facilitates the product to be delivered on time so that the farmer earns good profit for selling their fresh produce. But due to lesser connectivity via roads, inaccessibility due to climatic conditions (rainfall, landslides, snowfall) being the root cause for the loss. The second paramount obstruction is nescience towards technology and automation. Illiteracy or traditional conservative mindset obscures the farmer to use of innovative tools and technics. Ultimately, the farmer could not survive in the market competition and starts thinking about migrating to urban areas for betterment. However, opposites are the cases where some modern villages are well equipped and planned; using sustainable energy, totally ecofriendly and facilities are far better than any Indian city. Their small-scale business is not capital intensive and profit margins are high. 

Non-farming activity-based economy  

Apart from farming, non-farming activities are abundant and distinct to each part of the country. Geography specific harvests, as well as cultural festivities, are significant players because it creates a big market, and is the reason behind the rise in the economy. Dairy business for the rural farmer is highly encouraged. Amul dairy is an excellent example of an exponential increase in the economy through rural farmers. Handicrafts and handlooms prepared in various parts of the country are world-famous and exported at high rates. The labor-intensive services in urban areas are mainly are provided by rural inhabitants as regular employment. A small industry that does not necessitate literate or trained staff is preferably existing as a part of the rural economy. Geographical features like mine industry, forestry, or forest products (such as honey, wax, wood, some natural medicines) are other means of self-employment or business in the rural economy. 

Characteristics of the rural economy

Faith, morals, and unity

This trio is the life foundation of rural people. They are grounded, polite, and more generous than an educated and sophisticated so-called urban. They work hard to earn a penny; their morals forbid them from any misdeed. Their cultural beliefs hold them to unite.

Unemployment, debts, and poverty 

These three are in chronological order! Rural economy encounters with unemployment. An unemployed person takes debts to survive such circumstances, ultimately fails to save the left-overs, and becomes poorer.

Dependency and financial nonequivalence

Financial inequality and dependency are more usual than in semi-urban or urban areas. There is a variance in the living standards of a rural community. Rich people live a lavish life while the poor are hardly able to manage daily food for his family. Dependency means a member of the family leaves the area for earning and others are dependent on him or her.

Migration

Due to many whys and wherefores, a villager elects to leave his home, land, and even ancestral resources. To get a job, people migrate. Evacuation of the whole village for the same is ordinary in Uttara Khand, Bihar, and Uttar Pradesh. Migrants live a miserable initial life in a new place until they get work. Their struggle for survival sometimes leads to involvement in an illegal act. It is high time now to spread awareness amongst them regarding the policies and funds. Their promotion through the government can halt the migration from rural areas.

To overcome these rural challenges, a few suggestive steps:

• Spreading awareness is essential to increase the status of the rural economy.
• Small startup funds and grants for small industries should be encouraged.
• Providing essential facilities and its better alternatives can step up the level like the installation of solar panels and turbines for electricity. 
• Encouragement and promotion of innovative technologies made by locals