Building Rural India: A Roadmap for Prosperity - Introduction

Introduction

Rural India accommodating, sixty five percent of national population living in 6.65 lakh villages among 2.68 lakh Gram Panchayats and rural local bodies, assume pivotal role in making India a developed nation @ 2047. As part of development process associated with rapid urbanisation, around half of Indian population in the year 2047 wills still live-in rural areas. At the same time, its role to sustain urbanisation and development process will become more critical due to the ability of rural areas to provide (i) food supply chain/traditional food market, (ii) natural resources (water, energy), (iii) ecological systems and (iv) competitive edge in the form of surplus labour and demographic divided2.

Status of BRI

Successive governments since independence have given emphases on rural development with special schemes and programs under respective five-year plans with due implementation along with states and rural local bodies3. This focus on rural development got special impetus during last one decade by replacing Planning Commission with creation of NITI (National Institution for Transforming India) Aayog by a cabinet resolution on 1st January, 20154. Creation of NITI Aayog along with a set of programs, schemes by Government of India have made transformative and cascading effect on rural development which can be better termed as BUILDING RURAL INDIA. (Box 1)

The Focus Areas on BRI

It is in this sense imperative to provide due attention on rural development. Accordingly, this document brings together a set of twelve pillars of rural development covering fairly diversified areas of BRI. These includes land reforms, formalisation of economy, future of rural livelihood, women and entrepreneurship, smart rural infrastructure, Skilling for the 21st Century, Reviving Traditional Knowledge and Natural Resource, Data for Development, Financing Rural Enterprises and People Centric Government: Village Republic. (Table 1)

Table 1: Select Focus Areas for Building Rural India 

Coverage in Select Focus Areas 

A pointed and brief analysis of detailed strategies adopted, conclusions drawn and case studies applied is given in the following sections of the book. The analysis reinforces the role of Government, Society and Market as key drivers of rural development. Government, in the centre in particular, in association with states has taken up the task to reform, transform and perform with formulation of policies, programs and schemes to engage (i) market for creating demand and supply chain and (ii) society to mobilise community participation popularly known as Jan Bhagidari. Accordingly, a set of initiatives taken since last one decade as explained in the following analysis reflect the core focus of Sabka Saath Sabka Vikas (Inclusive Development in a participatory manner).

It is also important to note that a transformative approach has emerged across the key focus areas which are evolving along with the time and resources. Digital connectivity, financial inclusion, land reforms, marketing facilities, women led development and janbhagidari are the driving force behind the respective initiatives.

Specific feedback from respective sections elaborated in the following analysis broadly includes:

Land reforms and land use opportunities - A case study of Rajasthan traces the typology of historical reforms at grass root level in the state and specific reforms initiated by State Board of Revenue. These reforms gave due cognizance to a series of legal aid and empowerment initiatives of government of India (‘Pro bono legal services', Tele law service and Nyaya Mitra Scheme) on judicial reforms. Expediting case disposal, digital reforms and capacity building of subordinate courts was taken up by state revenue board duly supported by a legal framework drawn to carryout land reforms under specific sections of land revenue Act of 1956 and Rajasthan Tenancy Act of 1955. The paper also includes land reforms with special reference to large agrarian districts, urbanised district, IGNP (Indira Gandhi Nahar Pariyojana) command, etc.

Formalising the Rural Economy - Specific schemes and programs launched by GoI in last one decade have shown exceptional outreach to promote income and employment opportunities in rural areas. These include: PM Jan Dhan Yojan, Udyam Assist, PM Vishwakarma, assistance for 38 million affordable houses, GST relaxation to ease compliances and over 70 million registrations under Employee Provident Fund. This process of formalization has yielded positive results with digital inclusion, direct benefit transfer and remarkable decline in rural poverty (25.17% in 2011-12 to 7.2 in 2022-23 and 4.86 in 2023-24). At the same time, the need to continue the formalization is equally essential to cover the remaining enterprises and workers and maintain the existing assistance to consolidate the gains further for a sustainable livelihood.

Future of Rural Livelihoods: Moving Beyond Agriculture - The transformation of rural livelihoods is not just an economic imperative but a socio-political one. A rural economy that provides dignified, diversified, and sustainable employment is central to inclusive development. Moving beyond agriculture does not mean abandoning it. Rather, it means building upon it to create a resilient, future-ready rural India by exploring key non-farm rural employment opportunities such as the digital gig economy, rural Business Process Outsourcing (BPOs), rural livelihoods in logistics, green jobs, and agri-tech services. India has a historic opportunity to build this future using the twin engines of digital connectivity and green transition. By investing in people, Institutions, platforms, and partnerships, the country can ensure that its villages become promising opportunities, not distress.

Women and Entrepreneurship: Breaking Barriers in the Rural Landscape - This section analyzes the different aspects of women entrepreneurs in rural India. Many key issues, including the sources of funding, the critical importance of social capital, overcoming barriers to entry in the market, are duly covered. Specific case studies from different States of India are covered while presenting the poignant realities illustrating the considerable potential, together with the persistent difficulties that exist for women in rural areas. Finally, the analysis also aims to identify the policy frameworks and the support structures necessary to promote and facilitate equitable and sustainable business development for women in rural areas.

Smart Rural Infrastructure: Designing for Utility, Resilience and sustainability - The imperative of developing smart rural infrastructure in rural India is examined in this section in line with utility, resilience, and sustainability. Given reference to international experiences (European Union’s Smart Villages initiative, China’s Digital Villages strategy and decentralized off-grid systems in Sub-Saharan Africa) India’s policy landscape is contextualized highlighting major flagship schemes like the Pradhan Mantri Gram Sadak Yojana, the Jal Jeevan Mission, and BharatNet. The key policy gaps, including fragmented planning, inadequate operation and maintenance funding, limited climate adaptation measures, and persistent digital divides are identified to propose an integrated framework across sectors, community-driven governance, climate-resilient design standards, and enhanced digital capacity at the grassroots level. The paper also contributes to the discourse on rural infrastructure as a driver of inclusive growth and climate resilience, aligning with the Sustainable Development Goals and India’s vision for Atmanirbhar Bharat. The paper, finally, offers actionable insights for concerned policymakers, development practitioners, and local governance institutions.

Skilling For The 21st Century: Rethinking Rural Skill Development - Being the motherboard of development in the 21st century skilling needs to be calibrated to improve quantity and quality in jobs in rural India. A proper rethinking on skilling ecosystem can create a dashboard of opportunity for rural youth. Skilling also enhances labour capabilities and empowerment in multiple spheres of life even beyond jobs and income. Therefore, skill development is the prerequisite for meaningful productive engagements. Skilling comes as a prerequisite to act as an alternative to getting into meaningful employment engagements of rural youth. However, a strategic framework is needed to be consistent with the process of mobilization, enrolment, training, assessment, and placement. The skilling is prescribed to be conducted in alignment with the National Skill Qualification Framework (NSQF). A total of 37 Sector Skill Councils (SSCs), along with the National Skill Development Corporation (NSDC) have been set up to provide guidance and direction to the skilling in India. The schemes like Deendayal Upadhyay Grameen Kaushalya Yojana (DDU-GKY), Pradhan Mantri Kaushal Vikas Yojna (PMKVY), etc. are flagship interventions to bolster smart skilling in both urban and countryside. The country is at the cusp of transformation through the ‘Skill India Mission (SIM)’. The demand of Indian skilled workforce is continually growing in the other parts of the world. Thus, it is important to design a system in such a way that skilling transforms and promotes social inclusiveness. 

Data for Development - Leveraging Tech and Evidence for Rural Policy Policymakers are now better able to plan, carry out, and oversee rural development projects by leveraging technology advancements and real-time data collection technologies. This paper examines the use of geospatial technologies, mobile-based surveys, and Management Information Systems (MIS) like e-MARG (electronic Maintenance of Rural Roads under PMGSY) and OMMAS (Online Management, Monitoring and Accounting System) with reference to accountability and transparency in infrastructure and welfare programs. Continuous outcome tracking is made possible by the integration of digital feedback mechanisms and real-time dashboards for prompt remedial action and improved resource allocation and impact evaluations at the granular level. Effective case studies are included from Indian states where data-driven planning for rural health, education, water access, and road connection service delivery. Yet, there are issues pertaining to infrastructural deficiencies, digital illiteracy, and data privacy issues. Finally, the need for an ethical framework for data governance, robust institutional processes, and capacity-building is highlighted along with role of D4D for sustainable and equitable development with technology and evidence at the centre of rural policy formulation.

Financing Rural Enterprises - Access, Innovation, and Risk Mitigation: This section outlines strategies to bridge the India–Bharat divide through inclusive, innovative financing of rural enterprises. It covers difficulties faced by first-generation entrepreneurs, advances in alternative credit scoring powered by fintech, and the role of community institutions like Cluster-Level Federations (CLFs). The section also examines guarantee mechanisms such as Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), and presents adaptive “credit-plus” systems co-designed by NBFCs and fintechs. Further important examples like Haqdarshak democratizing access to welfare services and Kinara Capital’s women-focused lending are also included. Real-world engagement, quantitative insights, and mini-case studies are covered to underline the potential of integrated support systems. Finally, the policy recommendation are made aligned with the Building Rural India vision: inclusive financing that empowers dignity, participation, and sustainable prosperity.

Convergence in Action - Making Schemes Work Together at the Last Mile: The Integration of key approaches such as Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME), and Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has been examined in this section It is noted that institutional fragmentation is a significant barrier missing a joint planning or budgeting. The Gram Panchayats (GPs) at grass root level have lack of technical capacity, training, unified data systems, real-time monitoring tools and requisite budgeting protocols. Beneficiaries too are not aware of their entitlements. Yet, promising approaches on convergence have emerged such as NRLM, Self-Help Groups (SHGs) integrating livelihood planning with enterprise support (PMFME in Bihar), community-led models in covering district-level convergence committees on housing and employment schemes (Maharashtra) and digital platforms (e-Gram Swaraj) to streamline planning at the Panchayat level. These need to be institutionalised for scaling up and adaptation for Viksit Bharat @ 2047.

People Centric Government: Village Republic - Panchayati Raj as part of Indian civilisation is traced in the Vedic times, and according to some, even pre-Vedic times. The Village Panchayats are like the joint family system, survived all ups and downs until the British takeover in the nineteenth century. They continued to function informally later and saved the Indian society from disintegration. In this regard Gandhi played a unique role in Indian history on awakening of rural India contributing to several successful movements and achievement of freedom. After gaining independence the successive governments in centre and states revived the Village Panchayats that have come to play a major role in rural reconstruction. Accordingly, panchayats have played decisive role in the provision of services in rural areas and community mobilization for development.

Reviving Traditional Knowledge and Natural Resource-Based Livelihoods –MFP (Minor Forest Produce) economy of India being livelihoods of about 100 million tribal / forest-dwelling people is  huge natural wealth and traditional ecological knowledge associated with economic marginalization of its bottom-most collectors legally protected by  landmark forest right (2006) and Panchayat Extention to Scheduled Areas  legislations ,Yet, have de facto economic disempowerment caused by peculiar market malfunctions, infrastructural handicaps, and institutional drawbacks. The paper examines Minimum Support Price (MSP)" scheme in the light of local market forces and community bargaining power. It is suggested to have a market-systems approach policy from sustainability and equity perspective. Community-level institutions and decentralized infrastructure along with enabling the environment for community-led enterprises are needed to empower the bottom most collectors.

Digital Panchayat in India: Genesis and Impact (2004 –Present): covers journey of Panchayat Computerisation(e-Panchayat) from round Table conference (2004) and roll out of Panchayat Enterprise Suits (PES) for e-Gram Swaraj.It brings together institutional context technical architecture, implementation challenges and solutions. Accordingly, it shares evolutionary stages of e-PRI, e-Panchayat and Digital Panchayat program in India.

Roadmap for BRI

Brief and pointed analyses given in the interrelated sections reveal a roadmap for building rural India. Some key points of roadmap given in the following sections deserve special mention: 

1. Key strategies, programs and schemes on rural development as emerged during last one decade along with continuation of specific initiatives like minimum support price, fertiliser subsidy, Common Service Centres, e-Gram Swaraj / E-Panchayat /e-PRI/Digital Panchayat program Sabki Yojna Sabka Vikas etc. need further consolidation in view of broader objective of Atmanirbhar Bharat, Make in India and Make for India.

2. Rural Local Bodies (Panchayats and Panchayat Raj Institutions) being the mother institution at grass root level should be strengthened further to insertion of List IV in schedule seven of constitution of India and realise Janbhagidari (peoples participation) as a driving force to achieve the national vision on BRI for India 2047-a developed nation.

3. Productivity of rural self-employed and salaried workforce which is significantly low as compared to their urban counterpart and minimum basic earnings need further attention for upward increase with reference to average monthly income and nature of employment.

4. A multipronged strategy on rural livelihood needs to be included with focus on (i) Rural BPOs, (ii) logistics and supply chain management, green jobs, and agri-tech services, (iii) Digital public infrastructure and digital literacy and ICT skills, customised vocational training and skilling programs on non-farm sectors, (v) microfinance and FinTech solutions (vi) all-weather roads, (vii) education and healthcare facilities and (viii) rural tourism. 

5. Suitable land reforms to improve justice delivery system need to be identified in association with Land Revenue Board among respective states in view of declining size of rural land holding (2.28 ha in 1970 to 1.08 ha in 2015).

6. Rural livelihood needs to be strengthened with models of Cluster level Federations (CLF) covering CLF Banks, CLF NBFC and SVANidhi style progressive tranche.

7. Minor Forest Produce Economy needs to be protected from market malfunctions, infrastructural handicaps, and institutional drawbacks taking into account a review of Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (FRA)  and Panchayat Extention to Schedule Areas Act (PESA),1996  along with development of decentralised infrastructure and community led institutions.  

8. As part of Integrated framework for Smart Rural Infrastructure India’s flagship Schemes on rural infrastructure need further consolidation with peer-to-peer learning within India and elsewhere including European Unions’ Smart Village initiatives, Digital Village and Rural Smart Grids in China and off grid digital and renewable inclusion in Africa.

9. Focus on data-driven governance in rural regions needs to be framed in line with Sustainable Development Goals (SDGs) giving due cognizance to digital literacy, platform interoperability, data quality, privacy protections, public-private partnerships, capacity-building, and robust institutional frameworks along with evidence and technology into rural policy frameworks. Also initiate a flexible governance model that fully utilise data, not just as a monitoring tool but also as a driving force behind innovation, equity, and revolutionary transformation in rural India.

10. Skill tracking, demand mapping, placement innovations and role of Artificial Intelligence should be duly used for rural skill development in line with contemporary thrust on skill promotion.

11. In order to promote women entrepreneurship in rural India, positive innovation on women participation such as Kudumbshree, Lijjat Papar, Aajeevika Mission (Bihar), SEVA (Self Employed Women’s Association-Gujarat), Manndeshi foundation Maharastra need to be adapted in local context

12. A set of techniques need to be adapted to establish convergence of schemes covering participatory approaches to need assessment, capacity building of the frontline worker,’ performance-linked incentives, best-practices and emerging digital technologies as part of National convergence frame work.

Finally, this book is an attempt of its kind to briefly cover the detailed process of strategies applied on Building Rural India and flag the way forward in the formulation of polices evaluation of programs and further research on the subject.

References

1. PIB, (GoI): 6 February 2025, A New Dawn for Rural India’s Transformation 

2. UN Habitat, July 2025, IX Addition, Urban and Rural Linkages -Newsletter

3. https://www.studyiq.com/articles/five-year-plans-of-india/

4. https://mospi.gov.in/sites/default/files/Statistical_year_book_india_chapters/ch7.pdf