Rural Economy, Characteristics of Rural Economy in India, Place of Agricultural sector in Rural Economy, Diversification of agriculture

1. Dr. B. H. DAMJI
Associate Professor & Head,
Department of Economics,
D.B.F. Dayanand College
of Arts & Science,
Solapur

2. Characteristics of Rural Economy

3. Characteristics of Rural Economy
• A country of villages.
• Selfsufficient villages.
• Impact of caste system.
• Agriculture is major occupation.
• Underdeveloped agriculture.

4. •Contd.
• Indebted farmers.
• Rural cottage industries.
• Problem of poverty.
• Illiterate people.
• Problem of unemployment.
• Problem of drought.
• Barter system.

5. Place of Agriculture in Rural
Economy
• Way of subsistence.
• Share in GDP.
• Availability of employment.
• Importance in industrial development.
• Role in economic planning.

6. Contd.
• Importance in foodgrains production.
• Basis of domestic trade.
• Source of government revenue.
• Importance in international trade.
• Stability in general price level.
• Conducive to economic development.

7. Diversification of Agriculture
• Fisheries
• Horticulture
• Floriculture
• Dairying

8. Rural Industrialization
The programme of Rural Industrilization
• The production based on agricultural produce
• By products
• Rural handicraft and cottage industries.
• Fruits and vegetables

9. Role of Agro based industries
• Supplementary to agriculture
• Requirement of low capital
• Potential of employment generation
• Utilization of locally available raw material
• Balanced regional growth
• Existence in rural area
• Applicability of simple technology
• Diversity in production

10. Contd.
• Helps in reducing economic inequality
• Helps to raise rural income level
• Helps in eradication of poverty
• Increase in rural savings
• Growth in transportation and
telecommunication
• Development in rural markets
• Boost to rural entrepreneurship

11. THANK YOU