Casteism, factional politics, natural calamities like droughts and floods, and improper utilization of resources like water, fertilizers, and pesticides are major challenges to sustainable rural development in India according to the document. Casteism affects trade, agriculture, and democracy. Factional politics has led to intolerance and violence in villages. Droughts and floods have significant negative social and economic impacts. Resources must be properly managed and utilized to support sustainable development.