India as a

Agrigarian vs Rural
Economy (prospects
and challenges)

By:
Divyaraj Sinh Jhala
Kapil Kulkarni
Tarun Pradhan
Rural Economy
70% of India's population is involved in
Rural India
56% of its income is from Rural India
64% of India's expenditure is in Rural
India
33% of its Savings from Rural India
Dominated by Agriculture and Related
activities
Agrigarian Economy
India ranks second in the world in terms of
farm output

Agriculture and allied sectors like forestry

and fisheries account for 13.7 % of GDP

It accounts for about 50% of workforce

India broad based economic growth has

declined its contribution since independence
Challenges for Agricultural
Economy
The growth rate of Agriculture economy has slowed down than
population growth of population dependent on it

Dependent on natural conditions

Suicide of farmers is a major cause of worry

Post WTO domestic prices of goods have gone higher than

international prices

Raising agricultural productivity

Challenges in Rural Economy

Lack of infrastructure is a
major concern

Lack of education and proper

training to the workforce

Imitation of goods from MNCs

slows their prospects of
growth in rural India

Productivity of agriculture
land is very low compared to
developed nations
 Dem
Prospects of Rural India oneti
zatio
n
economy has
incre
ased
the
pros
pect
of
tech
nolo has
Urbanization
gy
changed in the
consumption thepatterns in
ruralIndia
the rural
India
n
Lack of infrastructure
econ provides the
opportunities omy
to invest and grow

Make in India provide an opportunity to manufacturing sector

growth in Rural economy
We are open for questions