India’s rural economy in 2021 – Signs of recovery

In a country like India, with millions of inhabitants, the unemployment problem even becomes difficult to manage. People find it very difficult to find work and most of the time they have to settle for less than what they are qualified for. Therefore, a rural economy in any country is very beneficial and important to him.

The rural economy provides people with jobs as well as opportunities, thus contributing to the reduction of the unemployment problem and the revival of the economy. The rural economy has always been very beneficial to the Indian economy. However, with the spread of the pandemic caused by the COVID-19 virus and the nationwide lockdown it imposed, the growth of the rural economy has been hampered. India’s agricultural growth fell and the economy kept falling.

In 2020-2021, after the reopening of the economy, the rural economy experienced growth. India has recorded record food production as well as an increase in agricultural exports. Exports were the highest since 2013-14. This year too, with a high level of food production as well as the expectations of a better monsoon, gave hope for further growth of the rural economy. What about previous predictions that said the second wave of the virus can completely destroy the rural economy?

With the current level of growth even after the arrival of the second wave of the virus, analysts and industry have said the predictions could turn out to be wrong. Smart Power India’s survey of mini-grid villages indicated that economic activities in villages were much less affected by the second wave of the virus than the health and education sectors.

Recent central government and state policies have benefited the rural sector. The remote, non-farm sector experienced a rapid recovery during Wave 2 as it was bolstered by government support including free food, advance payments and more.

Apart from this, the normal monsoon forecast for this year is another factor allowing a rapid recovery of the rural economy. The southwest monsoon arrived earlier this year. The June precipitation was in cumulative excess of 10% of the long-term average. The weather reports for the year have said that the monsoon of the year 2021 is very good.

It has significant potential for the creation of various decent and productive jobs and provides sustainable development and therefore leads to economic growth. The rural economy contributes to the significant share of total employment and output of the economy of our country, which has a huge population. The growing level of poverty in the country would also be reduced by the increasing growth of the rural economy.


Ongoing policy making by the government is also helping the rural economy to grow in large numbers. In a country like India, where there is a huge amount of poor people, the rural economy becomes the key to eradicating poverty in the country. By creating jobs and increasing the supply of agricultural products, poverty is said to decrease. The rural economy is also very necessary to meet the nutritional needs of the global economy.

The growing population further increases the nutritional requirements of the population, and hence the growth of the rural economy becomes very important. The need for a rural economy is also recognized in the 2030 agenda for sustainable development. According to the agenda, attention to the rural economy would increase to increase agricultural and food security across the world.

ILO and the rural economy

Rural development has always been a major program of the International Labor Organization (ILO) since its inception in 1919. The ILO has adopted more than 30 international labor standards that are directly relevant to agricultural and rural development.

How did India's rural economy fare during the Covid-19 lockdown and reopening?

The government body of the ILO adopted in March 2011 a strategy to promote decent work for the development of the rural economy. The steady growth of the economy, especially over the past two years, has been of great benefit to the Indian economy. A rebound in the rural economy can have a serious effect on increasing demand and increasing spending.

The sustained and continuous efforts of the government to support the rural economy as well as the growth of the vaccination campaign have been a major factor for the growth of the economy. This year’s monsoon has been very beneficial for agricultural activities, and if this government support wins to focus on the rural economy, it will act as a strong support system for the rural economy.

Government spending and coordination between centers and states would increase even more, as the rural economy has been very successful for the economy.

Edited by Aishwarya Ingle

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