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{{Use dmy dates|date=August 2021}}
{{See also|Agriculture in India}}
{{Orphan|date=October 2019}}

{{Infobox economy
| country = India
| image =
| gdp = {{increase}} $2.716 trillion (nominal; 2018)<ref name=imf2 /><br />{{increase}} $10.505 trillion ([[Purchasing power parity|PPP]]; 2018)<ref name=imf2>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weorept.aspx?pr.x=39&pr.y=17&sy=2017&ey=2021&scsm=1&ssd=1&sort=country&ds=.&br=1&c=534&s=NGDPD%2CPPPGDP%2CNGDPDPC%2CPPPPC&grp=0&a= |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=9 April 2019}}</ref>
| gdp rank = {{hlist|class=nowrap|[[List of countries by GDP (nominal)|7th (nominal; 2018)]]|[[List of countries by GDP (PPP)|3rd (PPP; 2018)]]}}
| rural population= 66.4% of the total population in 2017<ref name="ciafact_01">{{cite web|url= https://data.worldbank.org/topic/agriculture-and-rural-development?locations=IN&most_recent_value_desc=false |title= India rural population Rate |work= World Bank |publisher=World Bank|access-date=30 May 2019}}</ref>
| image_size = 300px
| alt = Economy
| caption =
| currency = [[Indian rupee]] (INR) [[Indian rupee sign|{{INR}}1]]
| organs = [[World Trade Organization|WTO]], [[World Customs Organization|WCO]], [[World Federation of Trade Unions|WFTU]], [[G-20 major economies|G-20]], [[Bank for International Settlements|BIS]], [[Asian Infrastructure Investment Bank|AIIB]], [[Asian Development Bank|ADB]]
| unemployment = {{decreasepositive}} 2.6% (2018)<ref name="ciafact_01">{{cite web|url= https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS?locations=IN |title= India Unemployment Rate |work= World Bank |publisher=World Bank|access-date=25 May 2019}}</ref>
| industries = {{hlist| Agricultural| Forest| [[handloom]]}}
}}

[[File:The Union Minister for Small Scale Industries and Agro and Rural Industries Shri Mahavir Prasad visits NSIC Pavilion at the India International Trade Fair, Pragati Maidan, in New Delhi on November 15, 2006.jpg|thumb|Rural industry in India]]
In rural areas, the business operates towards different industries, which are [[Agriculture in India|agriculture]], [[Forest industries|forest]], and [[handloom]] industries. The people lived in different areas of rural India master in unique skills. Such as the rural people living in Kerala, they have professional skill in carving wood, the other rural people proficient in weaving carpet live in Kashmir, there are various skills from place to place is because of the factors of resources and traditions.<ref>{{Cite journal|last=Anandaram|first=K|last2=Dubhashi|first2=Medha|date=1999|title=Role of cooperatives in social development|url=https://sydney.primo.exlibrisgroup.com/discovery/fulldisplay?docid=proquest38851370&context=PC&vid=61USYD_INST:sydney&search_scope=MyInst_and_CI&tab=Everything&lang=en|journal=Indian Journal of Industrial Relations|volume=35|issue=1|pages=108–113|via=JSTOR}}</ref> Besides, in India, the agricultural is vital for the economy because it accounts for 44.5% of GDP<ref>{{Cite journal|last=Sandhu|first=Navjot|last2=Hussain|first2=Javed|last3=Matlay|first3=Harry|date=26 October 2012|title=Barriers to finance experienced by female owner/managers of marginal farms in India|journal=Journal of Small Business and Enterprise Development|language=en|volume=19|issue=4|pages=640–655|doi=10.1108/14626001211277442|issn=1462-6004}}</ref> from 1970 to 1971 and offers 68% of rural employment. However, the [[Agriculture in India|agriculture sector]] shrunk to 16.1% of GDP in 2009 while the proportion of non-agricultural industry achieved 86% of the GDP.<ref>{{Cite journal|last=Tiwari|first=Sanjay|date=2015|title=Managing Transformation of Rural India through Rural Non-Farm Economy|journal=Journal of Rural and Industrial Development|volume=3|issue=2|doi=10.21863/jrid/2015.3.2.010|issn=2321-1873}}</ref>

A rural enterprise refers to a company registered in the rural areas, was under the responsibility of the [[Department for Environment, Food and Rural Affairs]].<ref>{{Cite book|title=Exploring rural enterprises : new perspectives on research, policy & practice|date=2014|publisher=Emerald|others=Henry, Colette., McElwee, Gerard.|isbn=9781784411091|location=Bingley, U.K.|oclc=888215615}}</ref> The reasons for business operating in the rural area are favorable factors such as the appealing [[dwelling]], fresh air, bigger extend headroom, cheaper [[rental]] fees, and harmonious relationships with [[Wage labour|labor]]. In India, there are still many people living in rural areas.<ref name=":2">{{Cite journal|last=Anandaram|first=K|last2=Dubhashi|first2=Medha|date=1999|title=Role of cooperatives in social development|url=https://sydney.primo.exlibrisgroup.com/discovery/fulldisplay?docid=proquest38851370&context=PC&vid=61USYD_INST:sydney&search_scope=MyInst_and_CI&tab=Everything&lang=en|journal=Indian Journal of Industrial Relations|volume=35|issue=1|pages=108–113|via=JSTOR}}</ref> Furthermore, There are approximately 90% of employees are residents who work in an assigned area in the [[countryside]] and aim to increase the local economy. The purpose of increasing in rural economy is to make fewer people living under the poverty line.<ref name=":2" /> The [[Joint-family|joint family]] structure is predominant as the strong [[kinship]] relationship in India.<ref name="Rutten 2001 165–189">{{Cite journal|last=Rutten|first=Mario|date=2001|title=Family Enterprises and Business Partnerships: Rural Entrepreneurs in India, Malaysia, and Indonesia|journal=The Journal of Entrepreneurship|language=en|volume=10|issue=2|pages=165–189|doi=10.1177/097135570101000203|issn=0971-3557}}</ref> Therefore, to assure that there are lucrative employment opportunities in rural India, the intervention of the plan is needed.<ref name=":2" /> For example, the [[Mahatma Gandhi National Rural Employment Guarantee Act]] has been promulgated to increase the opportunities for wage employment.<ref>{{Cite web|url=https://sydney.primo.exlibrisgroup.com/discovery/fulldisplay?docid=bcrc511044873&context=PC&vid=61USYD_INST:sydney&search_scope=MyInst_and_CI&tab=Everything&lang=en|title=India: Significant Employment and Enterprise Thrust in Rural Areas|website=sydney.primo.exlibrisgroup.com|access-date=15 May 2019}}</ref>

== History ==

In a different historical time, the performance of agriculture has a discrepancy, at the beginning of the [[Green Revolution in India|green revolution]], between the 1970s and 1980s, the growth rate of agricultural remains high in [[Uttar Pradesh]]. In the 1990s, the substantial loss is suffered by the farm economy as the growth space brings by the [[Green Revolution in India|Green revolution]] may be used up. Such as the decline in the outputs of Cereal crops, wheat, and [[Peanut|groundnuts]]. After the period of the [[liberalization]], the growth of the [[Grain|food grains]] stayed behind the increase in the population between 2000 and 2001 and the [[Total factor productivity]] show a decreasing trend from 1993<ref>{{Cite book|title=Growth, disparities and inclusive development in India : perspectives from the Indian State of Uttar Pradesh|others=Mamgain, R. P. (Rajendra P.)|isbn=9789811364433|location=Singapore|oclc=1097183522}}</ref> The [[Rural economics|rural economy]] with slow growth pace has developed to a high-speed growth economy after the [[Economic liberalisation in India|liberalization in economic]] and the improvement in the facilities. Between 1990 and 1991, the launch of new [[Economic policy|economic policies]] leads to a decline in the output of [[Grain|food grains]] and an increase in [[non-food crops]] such as cotton. The location of 61% of the total enterprises is in rural areas, as stated in the 2005 [[Indian economic census|Economic Census]] Report.<ref>{{Cite journal|last=Kashyap|first=Pradeep|date=2012|title=The Rural Boom in India|journal=International Journal of Rural Management|language=en|volume=8|issue=1–2|pages=133–141|doi=10.1177/0973005212462117|issn=0973-0052}}</ref>

==Types of rural industries==
[[File:Rural south Rajasthan Farming Agriculture India March 2015.jpg|thumb|Agriculture farming in south India]]

===Agriculture Industries===
The [[agriculture industry]] is crucial as it solved the [[Subsistence agriculture|subsistence]] of the 2/3 of the population in the field study at [[Ambedkar Nagar district|Ambedkar Negar district]], in which, the labor force of India accounts for 52%, and this sector made the contribution of 15.7% of the Gross domestic product between 2008 and 2009.<ref name=":0">{{Cite book|title=Growth, disparities and inclusive development in India : perspectives from the Indian state of Uttar Pradesh|others=Mamgain, R. P. (Rajendra P.)|isbn=9789811364433|location=Singapore|oclc=1097183522}}</ref> The majority of the National economy is contributed by the agricultural industry.<ref name=":2" /> The job of people who lived in rural India is still mainly engaging in agricultural.<ref name=":2" /> Nevertheless, it also found that the agricultural has a receding proportion in the GDP. There are approximately 91% of the population in the 13 selected villages in India works associated with farming, among these, over 86% are the small and marginal farmers who have an achievement of cultivating 75% of the [[Arable land|total arable land]].<ref name=":0" /> Besides, The [[agrarian economy]] mainly comes from the little area and marginal and small land possessed by farmers. However, there are still some factors such as the advent of [[Diseconomies of scale|diseconomies]] caused by the [[liberalization]] agenda,<ref name=":0" /> the downward trend of the share of the land, the limited job opportunities and [[Production–possibility frontier|production possibilities]] may lead to the livelihood under the line of poverty. Finding the sources or crops that can generate incomes and trying to satisfy the need of the consumers is needed to sustain their daily life. The sources or crops that can generate incomes and trying to satisfy the need of the consumers is needed to sustain their daily life.<ref name=":1" /> For example, the [[commercial products]] (milk, vegetables, and fruits) are the sources that can be traded in markets and are required by the residents as secured food. Besides, the small and medium farmers are more likely to foster diversified resources with catering the demand such as the grains, [[fiber]]s, and [[oilseeds]], which makes more profits. Therefore, many farmers made a transformation from farm to non-farm agriculture businesses. For instance, there are roughly 66% of the [[peasant]] engaged in non-traditional agricultural enterprises.<ref name=":1">{{Cite journal|last=Firdaus|first=G.|date=2012|title=Agricultural diversification for rural development. A case study of Ambedkar Nagar District of Uttar Pradesh, India|journal=Spanish Journal of Rural Development|doi=10.5261/2012.gen3.05|issn=2171-1216}}</ref>

===Forest Industries===
[[File:Canadian forest industries 1901-1902 (1902) (20498342286).jpg|thumb|logging teak in India]]
The [[forest industry]] traditionally produces two primary resources, which are timber and [[non-timber forest product]]s (NTEPs). The fuelwood plays a crucial role among the [[forest product]]s as it taking up more than 35% average forest income in the selected 27 villages around the [[Jharkhand]] in India. Besides, the forest income is significant because it made 12% to 42% increases to the village economy, and it is the dominant source of income in HFLA and HFHA villages. From which, it would alleviate the livelihood burden of households. It is using the majority of the [[firewood]] in the rural family as a source for heating in the selected villages in [[Jharkhand]]. Thus, less than 10% of the fuelwood for trading. Apart from the firewood, there is another forest product also very valuable, which is NTFPs.<ref>{{Cite journal|last=Dubey|first=Parag|date=2007|title=Sociocultural Factors and Enabling Policies for Non-timber Forest Products-based Microenterprise Development|journal=The Journal of Entrepreneurship|language=en|volume=16|issue=2|pages=197–206|doi=10.1177/097135570701600204|issn=0971-3557}}</ref> The [[Lumber|timber]] uses for producing furniture and equipment.

In contrast, the [[Non-timber forest product|NTFPs]] encompass the products that can use in different areas, such as the [[medicinal plants]] for healing, some specific plants used in making cosmetics. Furthermore, NTEPs is one of the oldest product in trade. For instance, in the 12th century AD, there is trade in [[sandalwood oil]] and [[Gum arabic|Arabic gum]]. Thus, it contributes to the local economies that started from the early days. Nowadays, the Baiga [[Tribals in India|tribal in India]] still lives to rely on the NTFPs as the source for living and income. Moreover, it also stated that NTFPs has intangible values such as in many cultures, specific Forest area is [[sacred]]. Therefore, the function of the NTFPs also can be related to [[Religion in India|religion]], not merely on the trade and the products.<ref>{{Cite journal|last=Belcher|first=Brian|last2=Achdiawan|first2=Ramadhani|last3=Dewi|first3=Sonya|date=2015|title=Forest-Based Livelihoods Strategies Conditioned by Market Remoteness and Forest Proximity in Jharkhand, India|journal=World Development|language=en|volume=66|pages=269–279|doi=10.1016/j.worlddev.2014.08.023|doi-access=free}}</ref>

===Hand loom industries===
[[File:Sambalpuri Ikat weaving loom (Tanta) from Odisha.jpg|thumb|Sambalpuri Ikat weaving loom (Tanta) from Odisha]]
The [[Handloom|hand loom industries]] in [[Odisha]] state, India is followed by the [[agriculture sector]] in terms of the contribution of the employment, which maintained the livelihood of the [[weaving|weavers]] in the [[low class]]. In rural India, the Bastralaya handloom [[cooperative]] produces [[Traditional clothing|traditional clothes]] ([[Sari|sarees]], [[lungi]]s) and household's products (bed cover) with dyeing [[Yarn]]s. There is a tradition in India, when the advent of the [[Nuakhai]] festival, the handloom items will be sent between family members. Also, women will wear a [[sari]] to dance during this festival. Furthermore, there is a complicated [[braid]] art called [[Ikat]], which weaving prominent patterns on the silk with using environmentally friendly colored [[thread (yarn)|thread]]s. Furthermore, while carrying on the orders, the quality of the product is strictly controlled, such as if the weaver did not meet the standard criteria in terms of the [[dimension]] of the sari, the cash fined will be required after rigorously check. Weavers in this industry should possess Textile skills,<ref>{{Cite journal|last=Alam|first=Mohammed|date=2013|title=Traditional Industries of India in the Globalised World|url=https://sydney.primo.exlibrisgroup.com/discovery/fulldisplay?docid=proquest1462044259&context=PC&vid=61USYD_INST:sydney&search_scope=MyInst_and_CI&tab=Everything&lang=en|journal=Journal of Third World Studies|volume=30|issue=2|pages=255–257|via=EBSCOhost}}</ref> learn new knowledge through regular activities and observe the needs of the customer such as the color they preferred for the sarees, these competencies with the help of Bastralaya company will improve [[Social economy|social-economic]]. Thus, the Bastralaya commit to bringing more [[earnings]] for weavers.<ref name="Kar 114–133">{{Cite journal|last=Kar|first=Surjit Kumar|date=22 June 2012|title=Knowledge process of rural handloom community enterprise: A narrative study of Sambalpuri Bastralaya in India|journal=Society and Business Review|language=en|volume=7|issue=2|pages=114–133|doi=10.1108/17465681211237592|issn=1746-5680}}</ref>

==Structure of rural enterprise==
A [[Joint-family|Joint family]] enterprise in India has a dominant place due to the concept of family and the incentives of the economic benefits.<ref>{{Cite journal|last=Gandhi|first=R.|date=1974|title=The caste-joint family axis of Hindu social system, the ethos of Hindu culture and the formation of Hindu personality.|url=http://search.proquest.com/docview/37574722/|journal=Sociologus|volume=24|issue=1|pages=56–64}}</ref> The Joint family encompasses two types of family, which are [[Patrilineality|patrilineal]] and [[Matrilineality|matrilineal]].<ref>{{Cite journal|last=Desai|first=I. P.|date=1956|title=The Joint Family in India—An Analysis|journal=Sociological Bulletin|language=en|volume=5|issue=2|pages=144–156|doi=10.1177/0038022919560206|issn=0038-0229}}</ref> Besides, the partnership between the family members or relatives with the same [[Caste system in India|caste]] and [[sub-caste]] will bring significant start-up capital and assistance from relatives to solve the issue, such as handling all of the business simultaneously. Besides, another predominant reason for this form of partnership is the concept of unity in a [[kinship]], which is a cherish perception relate to the [[immediate family]] or [[Distant Relatives]] as partners. For example, 23 partnership ventures have a corporation with family members in the total of the 48 enterprises in the selected two villages at [[Gujarat]], [[Western India|West India]]. However, even if the strong sense of unity as a family but the conflicts may appear eventually, and sometimes the certain activities need different nature of the collaboration. Therefore, it could happen that the partnership established outside of the [[Joint-family|joint family]].<ref name="Rutten 2001 165–189"/>

==Rural enterprise in India==
In India, there are different forms of rural enterprises, which are [[community-based organizations]], [[self-help groups]], and [[cooperative]]s, these companies are beneficial for the [[Rural economics|rural economy]] due to the job opportunities created. However, there are some challenges for enterprise in rural India, such as the limited [[asset]]s, inadequate skills and labors, unsteady [[Communications system|communication system]], and weak [[transport infrastructure]]. These are obstacles for enterprises in rural areas to be enlarged to a higher-value market. Also, the deficit of knowledge on promoting the product may lead to the proposition of improper decisions. For example, India rural enterprise has a reliance on the traditional experiences to thrive on, such as the weavers in Sambalpuri Bastralaya [[Loom|Handloom]] cooperative society limited obtained basic knowledge from parents and community.<ref name="Kar 114–133"/> Therefore, the appearance of [[E-commerce in India|e-commerce]] is to solve these issues. For instance, [[Anand Milk Union Limited]] is an India dairy cooperative; it applied the e-business in rural India to gain a robust [[supply chain]], eliminate [[Transport in India|transport]] obstacles, and have a good relationship with customers.<ref>{{Cite journal|last=Misra|first=Harekrishna|date=2008|title=Prospects and challenges in implementing e-business strategies for rural enterprises: A case of dairy cooperative in India|journal=(:unav)|pages=486–491|doi=10.1109/icmit.2008.4654413|isbn=978-1-4244-2329-3}}</ref>

===Rural cooperatives in India===
[[File:Credit Union in Warangal, India.JPG|thumb|175x175px|'thrift cooperative' in Mulukanoor, India]]
[[Cooperative]]s in India is on behalf of one of the most extensive system in terms of rural finance in the world. Agricultural cooperatives in India still have excellent scope for improvement with the changing economy.<ref name=":2" /> Through reaching a large number of clients, farmers (small and marginal farmers),<ref>{{Cite journal|last=Chand|first=Digambar|last2=Gartia|first2=Rajendra|date=2016|title=DIVERGENCE OF FOOD AND NUTRITIONAL SECURITY- A STUDY ON WESTERN ODISHA|url=https://sydney.primo.exlibrisgroup.com/discovery/fulldisplay?docid=proquest1770075855&context=PC&vid=61USYD_INST:sydney&search_scope=MyInst_and_CI&tab=Everything&lang=en|journal=International Journal of Food and Agricultural Economics|volume=4|issue=1|pages=87–108|via=ProQuest}}</ref> and people under the poverty line, it can be seen that rural cooperatives have an essential role in the [[hinterland]] of rural areas.<ref name=":3" /> There are approximately 450,000 [[cooperative]]s in India with 220 million people involved.<ref name=":2" /> Cooperatives originated from the twentieth century, and at an early stage mainly catered to the financial needs of the farmer, especially the advent of [[harvesting]] and [[sowing]]. Today, the cooperatives are responsible for the majority of [[Rural credit cooperative|rural credit]], which constitutes 65%.<ref name=":2" /> Under the different types of cooperatives in India, the [[credit cooperative]] is a powerful system in India, which encompasses the organization of the rural credit cooperative. In the villages of India the other types of cooperatives found are societies of farmer service and multipurpose society for large-scale agriculture.<ref name=":3">{{Cite book|title=Credit cooperatives in India : past, present and future|last=Misra, Biswa Swarup, 1975–|date=2010|publisher=Routledge|isbn=9780415566995|location=London|oclc=441140946}}</ref> [[Rural Cooperatives]] also engaged in distributing quality inputs to farmers by charging maximum price through the activity of [[procurement]].<ref name=":2" /> The dairy cooperatives in rural India help women become involved in the production of milk, acquiring confidence, more specifically, concerning the success of the [[Amul]] experiment.<ref name=":2" /> Pravaranagar Cooperative [[Sugar industry]] is another successful example as the contribution to the development of the [[Social economy|social-economic]] rising in the economic benefit and the improvement of rural facilities, which are inclusive of the areas of education, [[recreation center]], hospitals, and [[cooperative]]s.<ref name=":2" />

===Rural self-help groups===
[[File:Women self help group foundation.jpg|thumb|Self-help group in India|161x161px]]
The [[Support group|self-help group]] in India is an action taken in a group in a wide range, which helps approximately 33 million of [[Indian women]] to obtain [[financial services]] and other activities with lower prices. Women in rural India, especially with lower castes and lower education level, facing a plight such as the adverse health condition and limitation to acquire financial products.<ref name=":4">{{Cite journal|last=Lombe|first=Margaret|last2=Newransky|first2=Chrisann|last3=Kayser|first3=Karen|last4=Raj|first4=Paul|date=2012|title=Exploring Barriers to Inclusion of Widowed and Abandoned Women through Microcredit Self-Help Groups: The Case of Rural South India|url=https://sydney.primo.exlibrisgroup.com/discovery/fulldisplay?docid=proquest1221410576&context=PC&vid=61USYD_INST:sydney&search_scope=MyInst_and_CI&tab=Everything&lang=en|journal=Journal of Sociology and Social Welfare|volume=39|issue=2|pages=143–162|issn=0191-5096|via=ProQuest}}</ref> There are commonly 10 to 20 members in a rural self-help group, who funded money mutually for the enterprise or emergency. For example, in [[Tamil Nadu]], India. The new [[self-help groups]] established after the [[natural disaster]].<ref name=":5" /> One of the famous models launched in rural India is to provide [[microcredit]] to poor Indian women.<ref name=":6" /> The initiatives of rural development in India concentrate on the development of the economic status of women and other vulnerable people by providing micro-credit.<ref name=":4" /> Besides, there is another model not only offer the [[Microfinance]] plus<ref name=":6">{{Cite journal|last=Sankaran|first=V|date=2018|title=Entrepreneurship for Women Self Help Groups|url=https://sydney.primo.exlibrisgroup.com/discovery/fulldisplay?docid=proquest2149604955&context=PC&vid=61USYD_INST:sydney&search_scope=MyInst_and_CI&tab=Everything&lang=en|journal=Sumedha Journal of Management|volume=7|issue=2|pages=102–107|via=ProQuest}}</ref> but also involved in the areas of [[Education in India|education]], social [[attendance]], and [[Politics of India|politics]]. The self-help group has ethical implications for Indian women, such as alleviating the economic burden and eliminating [[Gender inequality in India|gender inequality]]. After accessing the loan products, there is an improvement for rural women in the aspects of psychological and economic conditions.<ref name=":4" /> Moreover, women who are [[widow]]ed will receive support.<ref name=":5">{{Cite journal|last=Larson|first=Grant|last2=Drolet|first2=Julie|last3=Samuel|first3=Miriam|date=2015|title=The role of self-help groups in post-tsunami rehabilitation|journal=International Social Work|language=en|volume=58|issue=5|pages=732–742|doi=10.1177/0020872813477880|issn=0020-8728}}</ref> In South India, the large proportion of rural women, especially widows, experienced poverty, uncertainty in the inheritance of land, and barriers of involving in community.<ref name=":4" /> The existence of the rural self-help group is to empower the vulnerable group, especially women, to conquer the barriers.<ref name=":4" />

== References ==
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