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*In general, arural areais 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,

*A population of less than 5,000
*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.

*Nearly70%of the country's population lives in rural areas where,

for the first time since Independence, the overall growth rate of
population has sharply declined, according to the latest Census.

*Rural Area

*An activity that serves as one's

regular source of livelihood


The rural labor markets are poorly understood component in many

developing countries
including India.

Even though the share of non-farm sector in Gross Domestic Product (GDP)

increasing at faster rate, 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.

Of-late, there is increased dynamism in rural labor markets with increased

rural-urban linkages, expansion of non-farm employment, migration and

technological change in rural and agricultural sectors, arm mechanization,
increase in labor productivity, implementation of employment guarantee act
(MGNREGA Act), and increased share of educated labor force.



* Young, educated, skilled manpower is migrating to urban

areas resulted in a widening gap in wage rates between

rural and urban sectors, agricultural and non-agricultural
sector employment.

* As a result, there is persistent poverty in some parts of

rural and agricultural sectors which are not benefited from

these growing opportunities.

* About 60% of poor in India are agricultural laborer.

* 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


* (i) Agricultural productivity may be raised.

* (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

* (iv) Rural development schemes must yield benefits to weaker
* (v) Non-agricultural sector must be extended to absorb
maximum new entrants of labour force.

*Measures for Improving

Occupational Structure


* DEFINITION of 'Income' Money that an individual

or business receives in exchange for providing a
good or service or through investing capital.
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.



* Agriculture remains the principal occupation in Indian village

society from the ancient period. 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
changing time agriculture has been replaced by other
occupations in different parts of India in the contemporary

* In the villages of hilly areas, the principal occupations include

agriculture and gardening. Agriculture is still the major
source of income in the northern and eastern Indian villages.

*Income and consumption pattern of the rural

households depend on many factors like assets, level

of education, occupation and demographic
*The sources of income in the rural household sector
are various.
* In most of the households the main occupation is not
the only source of income and in the cultivator
households, more: than 50 per cent of the household
income originate from other sources


* Cultivators/ Agricultural
* Labor
* Salaried
* Self-employed
* Dairy
* Other occupation in Indian villages includes the priests,

carpenters, blacksmiths, barbers, weavers, potters, oil

pressers, leatherworkers, sweepers, water bearers, toddytappers and many others.
* Cottage Industry
* Tourism Industry

*Sources of Income

*Average wages of workers have gone up by 54 percent over the last five years,

with incomes indexed to inflation. Inadequate rainfall and failure of monsoons

results in higher inflation further resulting in slow GDP growth which is already
at its low of 5-5.5%.

*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.

*In urban India, 22% of the population belongs to households with monthly per
capita expenditure less than Rs.580 which is about Rs 19 per person per day.

*The average consumption spending is Rs 19 a day/ Rs 625 a month in rural

areas but is Rs 39 a day/Rs 1,171 a month in urban areas.



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
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
The physical assets are land, buildings, livestock, agricultural
tools and implements and other household durable goods.
Valuation of most of these assets involves a lot of problems

*Asset Pattern

* The different financial instruments selected for investment are

classified as deposits, chits, post office saving, insurance,

provident fund and jewellery and others.
* Jewellery is considered as a financial asset , as this is
considered as more liquid ccmpared to other physical assets.
* 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.

*Assets & Saving