*A population of less than 5. *Rural Area . the overall growth rate of population has sharply declined.000 *Density of population less than 400 per sq km and *more than "25 per cent of the male working population" is engaged in agricultural pursuits. *Nearly 70% of the country's population lives in rural areas where. a rural area is a geographic area that is located outside cities and towns *The "rural sector" means any place as per the "latest census" which meets the following criteria.*In general. for the first time since Independence. according to the latest Census.

*An activity that serves as one's regular source of livelihood *Occupation .

implementation of employment guarantee act (MGNREGA Act). the labor shift from agricultural to non-agricultural sector is at much slower rate and the labor force participation rates are still low for women. arm mechanization. expansion of non-farm employment. *Occupational Structure . increase in labor productivity. migration and technological change in rural and agricultural sectors. there is increased dynamism in rural labor markets with increased rural-urban linkages.• The rural labor markets are poorly understood component in many developing countries including India. and increased share of educated labor force. • Of-late. • Even though the share of non-farm sector in Gross Domestic Product (GDP) increasing at faster rate.

agricultural and non-agricultural sector employment. educated. . skilled manpower is migrating to urban areas resulted in a widening gap in wage rates between rural and urban sectors. * About 60% of poor in India are agricultural laborer.* Young. there is persistent poverty in some parts of rural and agricultural sectors which are not benefited from these growing opportunities. * As a result.

* Agriculture is main occupation * Less Development of Industries * Unbalanced * Less Income * Small Villages * Backward Agriculture * Increase in Proportion of Agricultural Laborers * Less Development of Tertiary Activities *Features of Occupational Structure .

*  (v) Non-agricultural sector must be extended to absorb maximum new entrants of labour force. * (ii) Effective measures may be taken to control population. *  (iii) Much emphasis should be given on labour intensive industries specially cottage and small scale industries in rural regions. *Measures for Improving Occupational Structure   .* (i) Agricultural productivity may be raised.  * (iv) Rural development schemes must yield benefits to weaker sections.


Income is consumed to fuel day-to-day expenditures. Most people age 65 and under receive the majority of their income from a salary or wages earned from a job. *Introduction .* DEFINITION of 'Income' Money that an individual or business receives in exchange for providing a good or service or through investing capital.

* TRADITIONAL OCCUPATION IN INDIAN VILLAGES * Agriculture remains the principal occupation in Indian village society from the ancient period. . the principal occupations include agriculture and gardening. Agriculture is still the major source of income in the northern and eastern Indian villages. Reason The climatic conditions in most parts of India are suitable for agricultural activities and hence. India has become one of the leading producers of agricultural products in the world. * In the villages of hilly areas. In the changing time agriculture has been replaced by other occupations in different parts of India in the contemporary period.

* In most of the households the main occupation is not the only source of income and in the cultivator households. occupation and demographic characteristics. *The sources of income in the rural household sector are various.*Income and consumption pattern of the rural households depend on many factors like assets. more: than 50 per cent of the household income originate from other sources *Scenario . level of education.

water bearers. oil pressers. barbers. potters. weavers. * Cottage Industry * Tourism Industry *Sources of Income . toddytappers and many others. sweepers. blacksmiths.* Cultivators/ Agricultural * Labor * Salaried * Self-employed * Dairy * Other occupation in Indian villages includes the priests. carpenters. leatherworkers.

171 a month in urban areas. with incomes indexed to inflation. 22% of the population belongs to households with monthly per capita expenditure less than Rs. *The average consumption spending is Rs 19 a day/ Rs 625 a month in rural areas but is Rs 39 a day/Rs 1. Inadequate rainfall and failure of monsoons results in higher inflation further resulting in slow GDP growth which is already at its low of 5-5.580 which is about Rs 19 per person per day.   *Income Pattern .5%.*Average wages of workers have gone up by 54 percent over the last five years. * In urban India. *Nearly 19% of the rural population belongs to households with monthly per capita consumption expenditure of less than Rs 365 which is spending less than Rs 12 per person per day on consumption.


The proportion in which assets are distributed between productive and unproductive items holds the key for the level of income and consumption expenditure of households. The physical assets are land. livestock. buildings. Valuation of most of these assets involves a lot of problems *Asset Pattern . agricultural tools and implements and other household durable goods. The households possess both physical assets and financial assets. In the rural areas a good portion of the assets are held in the form of physical assets and very little in the form of financial assets.

insurance. * Jewellery is considered as a financial asset . as this is considered as more liquid ccmpared to other physical assets. chits. provident fund and jewellery and others. post office saving. *Assets & Saving Pattern .* The different financial instruments selected for investment are classified as deposits. * Claims on government and investment in shares and debentures are included under thehead jewellery and others since these households have invested very little inthese assets.