Drivers of Inclusive Rural Growth part 1
If today we go to rural or semi-rural area then you will be confronted with an unexpected scenario. You witness a new hope and a new belief. Today's rural india is undergoing at exceptional change. Did you know that there arn more active internet users in rural India than in cities? Did you knew that more then half of India's start-ups are in Tier 2 and 3 cities? said Prime Minister Stri Narendra Modi while urging india inic to levest in India's villages. While citing various government led interventions for rural growth, he said. The ambitions of rural India are increasingly on the rise, they want socio-economic mobility That's why investors like you should oot many opportunity to invest in villages and rural India. Your investments will open up new avenues for our brothers and sistars in rural India Besides roping in private sector for investment, Government of India has developed waborate plans and strategies to accelerate rural economy and socio-economic upliftment of rural citizen Further, Government is also eyeing rural markets as a means to push-up national economy dun to their significant share in national income of india Currently, India is the fifth largest economy of the world hosing net worth of 2.94 trillion dollar, but trillion dollar economy by 2025. To achieve this, Indio has set a target of one trillion dollar from agriculture three trillion dollar from services and one trillion dollar hom manufacturing sector.
The rural economy of india generates about half of the national income and more than two third of the employment is generated in the rural areas (NITI Aayog, 2017) More than half of the value added in manufacturing sector is contributed by rural areas. The agriculture and allied sectors alone contributed 17.8 percent to the total grost value added of the country during 2020- 21. Most of the current studies indicate that the growth, income and consumption patterns of narat india hold the key to boost demand, revive the economy, and sustain economic growth at national level. Among various other sectors agriculture and allied sectors are the major drivers of rural economy along with Fast Moving Consumer Goods (FMCG), Consumer Durables, Banking and MSMES (Mr, Small and Medium Enterprises).
the Government has set a goal to become a five Agriculture-The Fulcrum of Rural Economy Agriculture and allied sectors are the mainstay of rural economy as they drive demand for other sectors including retail, FMCG, and e-commerce, which are dependent on agriculture sector for inputs. Besides, agriculture rectly steers consumption and demand in seed, fertilisers and chemicals, agricultural macheery and implements, energy and transport sectors Hence, the Government has launched various forward looking policies and initiatives that aim at dustling the income of farmers by 2022 and also increase the non-farm income in rural areas. It is anticipated that the sector will grow to Rs 2 lakh crore by 2023 at a CAGR of 12.2 percent: Expected growth in agriculture sector shall stimulate demand for processing services, packaging, transportation and for finance, retail and other services. Untapped potential exists for public and private sector to contribute across the agricultural value chains, many in four areas of activities-market Enkage and farm to fork connections, logatics and supply chain, agro- processing, and research and development.
