Rural Economy.pptx

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1. Rural Economy Unit 1

2. Learning Objectives After studying this lesson, you should be in a position to: ➢ Explain the nature of rural economy ➢ Highlight the characteristics of rural markets ➢ Describe the differences between rural and the urban economy

3. Rural Economy - Rural - Urban disparities-policy interventions required - Rural face to Reforms - The Development exercises in the last few decades.

4. India is highly populated country. Majority of the Indian population lives in the rural areas. Purchasing power of the rural people has increased significantly in the recent past. Awareness of the rural people also increased significantly. Companies which focus attention on rural market certainly can succeed. Rural marketing has become real marketing. Compared to other economy, Indian economy is rural economy. India has enormous potential for rural marketing. India’s economy is predominantly rural in character.

5. With more than 700 million people living in rural areas, in some 5, 80,000 villages, about two-third of its workforce was engaged in agriculture and allied activities with a contribution of 29 percent of India’s Gross Domestic Product (GDP).

6. They were given below : In 1901 89 per cent In 1951 83 percent In 1971 80 percent In 1981 76 per cent In 1991 74 per cent In 2001 73 per cent In 2010 69 per cent In 2020 65 per cent

7. Classification of Indian Economy India’s economy can be thought of as comprising of two main sectors, namely, the rural sector and the urban sector. The rural sector is, in turn, composed of two main subsectors i.e. the agricultural sub- sector and the non-agricultural sub -sector. Fig. gives the classification of Indian economy.

8. The agricultural sector comprises agricultural and allied economic activities such as Crop Cultivation, Animal Husbandry, Dairying , Fisheries, Poultry and Forestry (Floriculture) etc. The non-agricultural sub-sector consists of economic activities relating to Industry, Business and Services.