Indian Rural Economy:

The Indian economy is better understood by understanding the rural economy as it represents the country’s majority of the population and the most significant component of the GDP of the economy. The Indian rural sector is woven around the basic economic activity – agriculture and its allied occupations. The farming community is engaged in agriculture, dairying, pisciculture, poultry, animal husbandry, forestry, marine fishery; minerals etc. produce the primary products are the major stake holders of the economy. Those engaged in non – agricultural activities in the rural areas comprise the remaining contributors. The rural industries both agro and non agro either located in rural areas or otherwise, engaged in value addition of the rural produce form the other end of the spectrum.
The key stake holders of the rural economy are the farmers, agricultural and non agricultural labourers, artisans, traders, money lenders, those engaged in education etc
Rural community lives with the resource base of common property resources at the village level and individually owned private property resources at the individual level. A judicious mix of using these resources by various stake holders results in weaving of social and economic fabric of a village community.
The rural environment is shaped by the economy, society and culture as much as political scenario and religious bent of people, existing leadership, educational and literacy levels and the institutional structures existing and their influence on people’s lives.