What Does the Rural Economy Need? Analysis of the Promises for Rural India

Abstract

The agricultural sector has performed worse than the other sectors over the years. The shares of non-Agricultural employment and output have increased, while 70% of agricultural households cannot meet their low consumption needs even after diversifi cation of sources of income. An analysis of budgetary p rovisions for the rural economy suggests that the government has not done enough to address some of these well-documented problems, and does not have the required vision to substantially increase rural employment opportunities.