Introduction
India’s goal of inclusive growth, guided by the vision of Sabka Saath, Sabka Vikas, Sabka Prayas, Sabka Vishwas, has brought several positive changes in recent years. These include a steady reduction in poverty, a gradual decrease in socio-economic inequalities, and better access to basic services. Rural development has played an important role in this progress because a large part of India’s population still lives in villages and depends on government support, local institutions, and community participation for better livelihoods and opportunities.
India’s rural development is being shaped by higher public spending, better infrastructure, improved employment programmes, digital technology, and greater involvement of local governments and community organisations. Together, these changes are creating a more inclusive approach to development—one that focuses not only on economic growth but also on fairness, dignity, equal opportunities, and the rights of every person, especially those from vulnerable and marginalised communities.
Policy Shift: From Welfare Delivery to Decentralised Partnerships
An important part of this change is that development is no longer seen as something that should be handled only by the government. There is now a growing focus on community participation and decentralised decision-making. Local governments and grassroots organisations are increasingly involved in planning, implementing, and monitoring development programmes. This allows local people to have a greater say in deciding what their communities need, making development more participatory, locally relevant, and sustainable.
The 73rd Constitutional Amendment Act, 1992 gave a strong institutional foundation to this approach by recognising Panchayati Raj Institutions (PRIs) as an important part of grassroots democracy. It enabled people at the village level to take part more directly in development planning and implementation. Building on this foundation, major government programmes such as the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin), formerly MGNREGS, the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM), the Swachh Bharat Mission, and the Jal Jeevan Mission increasingly work through panchayats, self-help groups (SHGs), and other grassroots organisations. This approach helps ensure that development programmes are shaped not only by government decisions but also by the needs, experiences, and participation of local communities.
This change in policy reflects the idea of Jan Bhagidari, which means people’s participation in development. Instead of treating people only as beneficiaries of government schemes, the focus is now on making them active partners in the development process. This participation is encouraged through training and capacity building, the use of technology, stronger community organisations, and greater involvement of people in planning and budgeting.
Another important part of this change is fiscal decentralisation, which gives local governments greater control over financial resources. The funds transferred directly to panchayats have increased from around ₹2.36 lakh crore under the 15th Finance Commission (2021–2026) to nearly ₹4.35 lakh crore under the 16th Finance Commission (2026–2031). This increase in funding gives panchayats greater financial independence and allows them to respond more effectively to the specific needs and priorities of their local communities.
Social Protection Expansion and Poverty Reduction Outcomes in India
India has made significant progress in reducing poverty and expanding social protection, supported by continued government investment in the social sector. Access to basic services such as safe drinking water, electricity, and rural sanitation has improved considerably. The coverage of social protection systems increased from 22% in 2016 to 64.3% in 2025, showing that many more people are now able to benefit from essential services and social support. Government spending on social services has also increased steadily since FY22. Between FY22 and FY26 (BE), social services expenditure grew at an average annual rate of 12%, while spending on education increased by 11% and health by 8%.
Assessing Poverty Through Multiple Indicators
India’s Multidimensional Poverty Index (MPI), published by NITI Aayog, shows a major decline in poverty over the years. The proportion of people considered multidimensionally poor fell from 55.3% in 2005–06 to 14.96% in 2019–21, and further to 11.28% in 2022–23. Other estimates, including those based on the Tendulkar Committee methodology, also show a significant decline in poverty between 2011–12 and 2023–24. Poverty levels have fallen across both rural and urban areas and across different states.
Overall, these trends show that economic growth, government welfare programmes, and better access to basic services have together played an important role in reducing poverty in India. This progress has been supported by the combined efforts of the central and state governments, along with welfare schemes and policies designed to address the specific needs of different communities.
Enhancing Rural Living Standards through Basic Services
India’s public policies increasingly focus on creating equal opportunities, reducing poverty, and preventing inequalities from becoming wider. The government has introduced several programmes to improve people’s access to affordable housing, food, social security, banking and financial services, basic facilities, and healthcare. These efforts have played an important role in improving people’s quality of life, especially in rural areas. The progress can be seen in the Sustainable Development Goal (SDG) National Indicator Framework Progress Report, 2025, published by the Ministry of Statistics and Programme Implementation (MoSPI), which shows improvement across several important development indicators.
Access to Safe Drinking Water
Access to safe drinking water in rural India has improved significantly in recent years. A major reason for this progress is the Jal Jeevan Mission (JJM), launched in 2019 with the goal of providing Har Ghar Jal, or tap water to every rural household. When the programme began, only about 3.23 crore rural households (17%) had tap water connections. By November 2025, another 12.50 crore households had been provided with connections, bringing the total to around 15.74 crore households. As a result, the share of rural households using improved sources of drinking water increased from 94.6% in 2015–16 to 99.6% in 2024–25.
The Economic Survey 2025–26 also highlights the wider benefits of this improvement. Better access to water has saved women considerable time, allowed more women to participate in economic activities, and helped reduce water-related diseases. Improvements in sanitation and electricity access have further strengthened these benefits.
Better Sanitation Facilities
The Swachh Bharat Mission (Grameen) was launched in 2014 with the aim of making India Open Defecation Free (ODF) by October 2019. By 2019–20, all districts had been declared ODF.
The focus has now moved beyond simply building toilets to ensuring that villages remain clean and manage their waste properly. By December 31, 2025, more than 96% of villages under the programme had achieved ODF Plus status. An ODF Plus village not only maintains its open-defecation-free status but also has systems for solid and liquid waste management and keeps its surroundings clean.
As of February 9, 2026, India had around 5.68 lakh ODF Plus villages. Of these, 5.29 lakh villages had suitable arrangements for solid waste management and 5.46 lakh had arrangements for liquid waste management. So far, the programme has also resulted in the construction of 2,331 plastic waste management units, 2.70 lakh community sanitary complexes, and 12.05 crore household toilets.
Universal Household Electrification
The Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) was launched in 2017 to provide electricity connections to all willing households that did not have electricity. The programme focused on rural households as well as poor households in urban areas.
At the beginning of the programme, around 3 crore households were estimated to be without electricity. By FY 2021–22, about 2.86 crore households had been electrified. By March 31, 2019, all states had reported 100% electrification of the willing un-electrified households identified under the scheme.
This expansion of electricity access has helped improve everyday life by making it easier for households to access education, communication, digital services, and livelihood opportunities.
Expanding Access to Rural Housing
Having a safe and permanent home is closely connected to dignity, security, and a better quality of life. The Pradhan Mantri Awaas Yojana–Gramin (PMAY-G) was launched in April 2016 to help achieve the goal of Housing for All. The scheme provides eligible rural families with pucca houses along with basic amenities.
Against an overall target of 4.95 crore houses, around 4.14 crore houses have been allocated to States and Union Territories. Of these, 3.86 crore have been sanctioned and 2.93 crore completed so far. In addition, around 76.98 lakh houses left incomplete under earlier housing schemes have also been completed. Overall, about 3.70 crore rural houses have been constructed over the past 11 years.
The government’s increased focus on rural housing is also reflected in its budget. The allocation for PMAY-G increased from ₹15,000 crore in 2016–17 to ₹54,916.70 crore in 2026–27.
Improving Rural Road Connectivity
Good roads are essential for rural development because they connect villages with schools, hospitals, markets, workplaces, and other essential services. Better connectivity can also help farmers reach markets and improve their economic opportunities.
The Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in 2000 to provide all-weather roads to eligible villages and habitations that did not have proper road connectivity. By mid-January 2026, more than 99.6% of eligible habitations had been connected.
Under PMGSY-I, around 1,63,665 roads covering 6.25 lakh kilometres, along with 7,210 bridges, had been completed. PMGSY-II, launched in 2013, focused on improving and upgrading existing rural roads. By mid-January 2026, 6,612 roads covering 49,087 kilometres and 749 bridges had been completed under this phase.
PMGSY-III, approved in 2019, focuses on strengthening important rural routes connecting villages with agricultural markets, educational institutions, and healthcare facilities. More than 1.02 lakh kilometres of roads and 1,734 bridges have been completed under this phase.
The government’s continued focus on rural connectivity can also be seen in the budget allocation, which increased from ₹12,581 crore in 2016–17 to ₹19,000 crore in 2026–27.
Supporting Tribal and Vulnerable Communities
Government programmes have also placed greater emphasis on improving access to basic services for tribal communities and other vulnerable groups. One important initiative is the PM-Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN), which aims to ensure that government schemes reach 28,700 habitations inhabited by Particularly Vulnerable Tribal Groups (PVTGs).
Under PM-JANMAN, 2,495 roads covering 7,324 kilometres and 164 bridges have been sanctioned, with 263 roads completed by January 15, 2026.
Another major initiative, the Dharti Aaba Janjatiya Gram Utkarsh Abhiyan (DA-JGUA), covers more than 63,000 tribal villages. It focuses on improving access to drinking water, housing, education, healthcare, and livelihood opportunities.
Efforts are also being made to strengthen tribal livelihoods and community control over natural resources. Around 4,105 Van Dhan Vikas Kendras have been established, benefiting approximately 12 lakh people. At the same time, the implementation of the Forest Rights Act, 2006 has resulted in the distribution of more than 25 lakh forest rights titles, giving tribal and forest-dwelling communities greater recognition and control over their traditional land and forest resources.
Overall, these initiatives show that rural development in India is increasingly focused not only on reducing poverty, but also on improving basic services, infrastructure, dignity, economic opportunities, and social inclusion. By focusing particularly on rural, tribal, and vulnerable communities, these policies aim to ensure that the benefits of development reach people who need them the most.
Digitalisation and Technology-Led Service Delivery in Rural Areas
Digital technology has become an important part of rural development in India. By combining technology with administrative reforms, the government has made the delivery of rural services more transparent, efficient, and accountable. Digital systems have also made it easier for people living in remote areas to access government services.
The use of Aadhaar-based systems and digital payments has increased significantly. In many government programmes, wages are now transferred directly into beneficiaries’ bank accounts, reducing delays and the possibility of leakages. Technology has also improved the monitoring of rural development projects through the geo-tagging of assets, which makes it easier to track where and how public funds are being used. An increasing number of these assets are also being created directly at the household level.
The SVAMITVA scheme is another important example of how technology is helping rural communities. It uses drones to map villages and identify property boundaries, helping people get official property records. This can reduce land and property disputes and make it easier for rural residents to access loans, government schemes, and other services. By December 2025, drone surveys had covered around 3.28 lakh villages, while 2.76 crore property cards had been prepared across 1.82 lakh villages.
Technology is also creating new opportunities for rural women. The Namo Drone Didi programme supports women from Self-Help Groups (SHGs) by providing them with training and drones for agricultural and other services. During 2023–24, 1,094 drones were provided to SHG members under the initiative, helping women participate in emerging technology-based economic activities.
Digitalisation of Land Records
Land records have also undergone major digital changes through the Digital India Land Records Modernisation Programme (DILRMP). Digitising land records makes information easier to access and helps reduce problems such as unclear ownership, disputes, and delays in land-related services.
So far, around 99.8% of rural Records of Rights have been digitised, while 95.73% of Sub-Registration Offices have been computerised. In addition, Unique Land Parcel Identification Numbers (ULPIN), also known as Bhu-Aadhaar, have been assigned to about 36.67 crore land parcels.
Overall, digitalisation is making rural governance faster, more transparent, and easier to access. It is not only improving the way government programmes are delivered but also giving rural people, including women, farmers, and landowners, better access to information, financial services, property rights, and economic opportunities.
Community-Led Institutions enabling Inclusive Governance and Livelihoods
Building Stronger Communities and Local Institutions
India’s development experience shows that successful government programmes depend not only on policies and funding but also on the people and institutions that deliver these services on the ground. Community organisations, frontline workers, and local government officials play an important role in making sure that people actually receive services related to health, education, skills, and livelihoods. Providing them with better training, resources, and support can make local governance more responsive, accountable, and effective.
Empowering Youth and Panchayats for Better Local Governance
The Model Youth Gram Sabha (MYGS) encourages young people to understand how democracy and local government work. Through simulated Gram Sabha meetings in schools, students learn how local decisions are made and how citizens can participate in them. The programme has been implemented across the country through institutions such as Jawahar Navodaya Vidyalayas and Eklavya Model Residential Schools. It helps students develop leadership and civic awareness while teaching them the importance of transparency, inclusion, and accountability.
The Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) focuses on strengthening Panchayati Raj Institutions (PRIs). It provides support for leadership development, e-governance, training, and greater use of the powers given to local governments by the Constitution. Implemented from FY 2022–23 to 2025–26 with an allocation of ₹5,911 crore, the programme aims to make local governments more capable and participatory. The Union Budget 2026–27 allocated ₹1,142 crore to RGSA, showing the continued importance given to strengthening grassroots governance.
Women-Led Institutions and Rural Transformation
Women’s organisations have become an important force behind rural development, particularly through the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM). The programme has been allocated ₹19,200 crore in the Union Budget 2026–27.
Through Self-Help Groups (SHGs) and their federations, rural women come together to save money, access loans, support each other, and build livelihoods. So far, around 10.05 crore women have joined 90.09 lakh SHGs. This has helped improve financial inclusion and collective economic activity among rural women.
DAY-NRLM goes beyond providing access to credit. It also supports women farmers through sustainable farming and livestock activities, encourages small non-farm businesses, and creates livelihood opportunities for women who do not own land by making use of local resources.
The SHG system, guided by the Panchsutra and expanded through the Dashsutra approach, is also becoming involved in wider community issues such as health and nutrition, education, local governance, access to government benefits, and sustainable livelihoods. As a result, SHGs are increasingly becoming important institutions for community development and social change in rural India.
Women as Community Resource Persons
Women-led community institutions are supported by a network of Community Resource Persons (CRPs) who work directly with people at the grassroots level. These include Bank Sakhis, Krishi Sakhis, Pashu Sakhis, and Enterprise Promotion CRPs. They help women access banking services, improve farming and livestock practices, start businesses, and make better use of government programmes.
At present, around 1.49 lakh Bank Sakhis provide financial services, while more than 9 lakh CRPs work in areas such as agriculture, banking, insurance, nutrition, and other livelihood activities.
The broader goal is to help SHG households gradually achieve food security and stable incomes over a period of around 6–8 years. Building on this system, the National Campaign on Entrepreneurship aims to train 50,000 CRPs and provide enterprise development support to 50 lakh SHG members under the vision of “Har Ghar Udyam, Har Gaon Samriddh.”
Women working as BC Sakhis have also helped expand access to banking and social security services in villages. With the support of digital tools and Point of Sale (PoS) devices, including collaboration with India Post, they can provide basic banking services closer to people’s homes.
At the same time, cooperation between DAY-NRLM community workers and frontline health workers such as Anganwadi Workers, ANMs, and ASHAs has strengthened community awareness about health and nutrition. This has encouraged better practices related to maternal and child health and helped more people make use of available healthcare services.
Overall, these initiatives show that rural development is increasingly being driven not only by government departments but also by local communities, women’s groups, young people, and grassroots workers. Strengthening these local institutions can make development programmes more effective because they are closer to the people and better able to understand and respond to their needs.
Community-Led Approaches to Food, Nutrition, Health, and WASH (FNHW)
India has made significant progress in improving health and nutrition, and community participation has played an important role alongside government health programmes. According to the Economic Survey 2025–26, India has made faster progress than the global average since 1990. Maternal mortality has fallen by 86%, under-five mortality by 78%, and neonatal mortality by 70%. Infant mortality has also declined from 40 deaths per 1,000 live births in 2013 to 25 in 2023. These improvements show the progress India has made in protecting the health of mothers and children.
Community-based programmes are also helping address problems such as malnutrition, poor sanitation, and lack of health awareness. Under the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM), the Food, Nutrition, Health and WASH (FNHW) initiative works directly with communities to improve everyday health and nutrition practices.
The programme uses Social and Behaviour Change Communication (SBCC) to encourage people to adopt healthier habits. Its activities cover areas such as maternal and child health, balanced and diverse diets, reducing anaemia, menstrual hygiene, disease prevention, sanitation, and waste management.
The programme also encourages families to improve their nutrition and income through activities such as nutri-gardens, backyard poultry, small livestock, and dairy farming. This approach connects better nutrition with stronger livelihoods, helping families become healthier while also improving their economic security.
By 2025, FNHW activities had been introduced in 6,406 blocks across 683 districts. These initiatives have helped strengthen community participation, increase awareness about panchayat-level programmes and government schemes, and encourage people to adopt healthier practices.
Overall, the experience shows that improving health and nutrition is not only about providing government services. When communities, local institutions, and frontline workers work together, people are more likely to understand, access, and benefit from these services. This makes rural development more participatory, inclusive, and focused on the actual needs of local communities.
Skill Development, Entrepreneurship, and Employment in Rural Areas
India’s rural job market is still largely dependent on agriculture and self-employment. According to the Periodic Labour Force Survey (PLFS), October–December 2025, around 58.5% of rural workers are engaged in agriculture, while 63.2% are self-employed. Women have a relatively high presence in both these categories. This shows the need to create more stable livelihoods, better skills, and new employment and business opportunities that match the realities of rural areas.
Skill Development for Better Rural Employment
Skill development can help rural people find better jobs and reduce their dependence on traditional agriculture. The Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) focuses on providing rural youth with skills that are in demand in the job market. The training is linked to employment opportunities, and the quality of training is checked through third-party certification by Sector Skill Councils under the National Skill Development Corporation (NSDC).
The programme mainly targets poor rural youth between 15 and 35 years of age. The upper age limit is extended to 45 years for women and certain vulnerable groups, including persons with disabilities, Particularly Vulnerable Tribal Groups (PVTGs), and transgender persons.
DDU-GKY is currently being implemented across 27 States and 4 Union Territories, through 2,369 training centres covering 37 sectors and 816 different job roles. During the year up to October 2025, 82,272 candidates were trained and 37,035 were placed in jobs. Since the programme began, around 17.92 lakh young people have been trained and 11.64 lakh have found wage employment.
Another important initiative is the Rural Self Employment Training Institutes (RSETIs). These institutes work through a public-private partnership model and provide training that helps rural people start their own businesses or find wage employment. There are 629 RSETIs across 616 districts in 33 States and Union Territories. Since their establishment, they have trained nearly 59 lakh rural youth, of whom around 43 lakh have found self-employment or wage employment.
Creating More Opportunities for Rural Women
Increasing women’s participation in the workforce is important for improving household incomes and strengthening rural economies. Skill development programmes can give women access to opportunities in newer areas such as manufacturing, renewable energy, digital services, and agro-processing.
Programmes such as Back to Work and Returnship programmes can also help women who have taken a break from work to return to employment. At the same time, connecting Self-Help Groups (SHGs) with the MSME sector can help women move from small-scale or subsistence activities towards more organised and growth-oriented businesses.
Strengthening Rural Employment through the Viksit Bharat Guarantee
The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 marks an important change in India’s rural employment policy. With a budget allocation of ₹95,692.31 crore for 2026–27, the Act seeks to modernise the rural employment guarantee system while making it more accountable and linking employment creation with rural infrastructure and climate resilience.
Some of its major features include:
- 125 days of guaranteed unskilled wage employment for every eligible rural household each year.
- A focus on four major areas: water security, rural infrastructure, livelihoods, and disaster preparedness.
- Stronger protection for workers, including compensation when employment is delayed, removal of certain provisions that could lead to loss of entitlement, and stronger accountability mechanisms.
Overall, these measures show that rural employment policy is moving beyond simply providing temporary work. The broader aim is to create better skills, stronger livelihoods, more opportunities for self-employment, and improved rural infrastructure, while also giving women and vulnerable groups greater opportunities to participate in the economy.
Conclusion
Over the past decade, rural development in India has gradually moved away from a system focused mainly on government welfare schemes towards a more integrated, decentralised, and community-driven approach. Increased government spending has helped expand access to important services such as housing, roads, drinking water, sanitation, electricity, digital services, and social protection. At the same time, greater attention has been given to livelihoods, skill development, and entrepreneurship, helping rural people create more stable sources of income.
A major part of this transformation has been the growing role of local institutions and communities. Panchayati Raj Institutions, Self-Help Groups, and community workers are no longer seen simply as channels for delivering government schemes. They are increasingly becoming active participants in planning, implementing, and monitoring development programmes. This reflects the idea of Jan Bhagidari, where people are treated as partners in development rather than just beneficiaries.
Technology has further strengthened this process by making government services faster, more transparent, and easier to access. At the same time, women-led institutions and community-based livelihood programmes have created greater opportunities for women, vulnerable groups, and marginalised communities to participate in economic and social activities.
Overall, these changes show that rural India is no longer simply a recipient of government support. Rural communities are increasingly becoming active contributors to their own development. Stronger local institutions, greater community participation, better use of technology, and improved livelihood opportunities can help rural India play a much bigger role in inclusive economic growth, democratic governance, and long-term sustainable development.
