how is economic situtation in rural areas of india
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Answers
What is the importance of rural economics in India?
The Rural Economy in India is mostly agriculture based and is very important because of it's vital supply and demand links with the other Indian industries. Agriculture acts as the base-industry for several other industries predominantly as a source of raw material.
Indian rural economy's greatest contribution is the number of people it has somehow continued to employ under it. In spite of the high scale of urbanization taking place, India's close to 62% population (775 million people) still reside in about 600,000 small rural villages. Mind you this number is greater than the combined population of entire Europe (743 million).
Secondly even though Indian agriculture accounts for only 19% of India's Gross Domestic Product (GDP), it's percentage in electoral vote share is very high which makes it the deciding political factor. Anything that dominates politics, dominates the policy making process and hence the economy; making rural Indian economy extremely crucial for India.
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