Rural Economics deals with the application of economic principles in understanding and developing rural areas. Rural areas are geographical areas located outside towns and cities. Rural economy refers to villages, and rural community refers to people living in villages. Mahatma Gandhi said, 'India Lives in Villages'.
1. Rural India – Basic Facts
| Item | Fact |
|---|---|
| Basic unit of rural areas (Census of India) | The revenue village |
| Villages in India (2011 Census) | 6,40,867 |
| Rural share of population (2011 Census) | 68.84 per cent of the 121 crore total population |
| Rural households (SECC, 2015) | Around 73 per cent of households in India; of these, 18.5 per cent are Scheduled Caste and 11 per cent Scheduled Tribe households |
2. Features of Rural Economy
| Feature | Explanation |
|---|---|
| Village is an institution | Primary institution meeting almost all needs of the rural community |
| Dependence on agriculture | Agriculture and allied activities are the main occupation |
| Life of rural people | Simple lifestyles; limited public services; reliance on faith and traditions |
| Population density | Very low; houses are scattered |
| Employment | Unemployment, seasonal unemployment and underemployment exist |
| Poverty | About 22 crores of rural people are poor (2011-12 estimates) |
| Indebtedness | Villagers depend on local money lenders |
| Dependency | On social grants and remittances from family members working in cities |
| Dualism | Co-existence of two extremely different features (developed and underdeveloped, traditional and modern) |
| Inequality | Income, wealth and assets highly skewed; landlords dominate |
| Migration | To urban areas for gainful employment; gives rise to cities |