Rural india, where nearly 65% of the population resides, is undergoing a transformative renaissance, laying the foundation for India’s journey towards Viksit Bharat. Traditionally the backbone of the nation’s agriculture and handicrafts, rural India is now emerging as a dynamic driver of economic growth.
While agriculture still contributes 15-18% to the national GDP (gross domestic product), rural areas are rapidly evolving beyond their agrarian roots. With rural consumption accounting for nearly 55% of total consumer spending, the demand for consumer goods such as two-wheelers, televisions, and smartphones is surging, often outpacing urban markets (PRICE’s ICE360 survey, 2023). This transformation is fuelled by rising incomes, improved infrastructure, and growing aspirations for a better quality of life. At the heart of this evolution lies the confluence of digital transformation, government welfare schemes, and entrepreneurial energy.
The digital revolution has brought connectivity and technology to the doorsteps of rural households. By 2024, rural India boasted over 360 million internet users, growing faster than urban regions in adoption rates. Affordable smartphones and data services, coupled with initiatives like Digital India, have enabled rural communities to embrace digital tools and platforms. Apps like WhatsApp, with over 210 million Indian users, are now integral for communication, commerce, and even governance in villages. Social media platforms like Facebook and Instagram have empowered rural artisans, farmers, and businesses to connect with wider markets. Digital payments through platforms like UPI (Unified Payments Interface) have further integrated rural India into the formal economy, with 12 billion monthly transactions, a growing share of which originates from rural areas.
Building on the digital transformation are the government’s welfare schemes, which have been pivotal in driving rural development. Programmes like PM-Kisan Samman Nidhi, which transfer Rs. 6,000 annually to over 100 million farmers, have empowered small and marginal farmers to invest in better agricultural practices. Similarly, MGNREGA, which generated about 4 billion person-days of employment in the last fiscal year, provides a crucial safety net for rural households during times of economic distress.
Infrastructure-focussed initiatives, such as the Pradhan Mantri Gram Sadak Yojana, have improved connectivity to markets, schools, and healthcare by linking 97% of villages with all-weather roads. Meanwhile, schemes like the Saubhagya Yojana, which electrified millions of homes, and the Jal Jeevan Mission, which is delivering clean drinking water, have significantly improved living standards.
Complementing these government efforts is the entrepreneurial energy transforming rural innovation. Start-ups like DeHaat and AgroStar are empowering farmers by providing access to real-time advisory services, high-quality inputs, and market linkages. For example, DeHaat has onboarded over 1.5 million farmers, enabling them to adopt modern agricultural practices and improve profitability. Similarly, Stellapps, a dairy-tech start-up, uses technology to help small-scale dairy farmers enhance productivity and secure fair pricing for their produce. Platforms like Meesho are revolutionising rural e-commerce, enabling homemakers and artisans to sell their products online, bypassing intermediaries and reaching wider markets.
Additionally, organisations like Rang De and Mann Deshi Foundation are fostering financial independence by offering microloans and vocational training, particularly for rural women, encouraging entrepreneurship and economic empowerment. Together, these entrepreneurial efforts are not only creating local jobs but also nurturing a spirit of self-reliance across rural communities.
The opportunities for rural India in the vision of a Viksit Bharat are immense and multifaceted. Agricultural modernisation through the adoption of precision farming, efficient irrigation, and advanced storage infrastructure holds the potential to enhance productivity while reducing post-harvest losses. For instance, the adoption of drip irrigation has reduced water usage by 40% in some regions while simultaneously increasing yields. Similarly, renewable energy projects, particularly decentralised solar farms, offer a dual benefit of employment generation and energy independence.
Rural tourism is another untapped opportunity, with cultural heritage and natural landscapes providing a sustainable model for economic growth. Successful initiatives in states like Rajasthan and Kerala highlight how rural tourism can create jobs while promoting local culture. Moreover, programmes like Skill India and Digital Saksharta Abhiyan (DISHA) are equipping rural youth with industry-relevant skills.
However, despite this progress, there are challenges that could hinder rural India’s journey to becoming a cornerstone of Viksit Bharat. Climate change continues to threaten agriculture, with erratic rainfall and rising temperatures increasing the risk of crop failures and food insecurity. Infrastructure gaps, particularly in healthcare and consistent electricity supply, still hold back many rural regions. While digital connectivity is growing, digital literacy remains a significant barrier, preventing many rural residents from fully utilising the tools and services available to them. Additionally, urban migration continues to deplete rural areas of skilled labour, exacerbating inequalities and leaving local economies vulnerable.
Despite these hurdles, rural India is no longer just a passive participant in the nation’s growth story-it is becoming a leader. Addressing the pressing challenges of climate vulnerability, infrastructure gaps, and skill development will be essential to unlocking rural India’s full potential.
The resurgence of rural India is integral to achieving the dream of a Viksit Bharat-a nation where prosperity and opportunity reach every village, every farmer, and every artisan. By blending traditional livelihoods with modern opportunities, rural India is setting benchmarks for innovation, inclusivity, and resilience. The path to India’s future prosperity undeniably runs through its villages, making the rural renaissance a story of hope, progress, and boundless potential.
Views are personal. The author is Rajesh Shukla, Md & CEO, Price.
