Economic Survey 2024-25: Rural Reforms Power Growth, Boosting Livelihoods And Infrastructure

Economic Survey 2024-25 highlights rural India's pivotal role in economic growth, with government reforms boosting agriculture, infrastructure, and livelihoods.

New Delhi: The Economic Survey 2024-25, tabled by Finance Minister Nirmala Sitharaman, put rural India in the limelight for contributing to the growth of the economy. According to it, the government has pledged to put a lot of emphasis on rural infrastructure, housing, health, water supply, and employment to enable inclusive and equitable development.

"Emphasis of government is on improving quality of life in rural areas for ensuring more equitable and inclusive development," the Survey said. It provided information regarding the achievements in the areas of road connectivity, housing, drinking water, sanitation, and healthcare, along with skill development for rural livelihoods and financial inclusion.

Hemant Jain, President, PHDCCI, told ETV Bharat, "Government reforms aimed at boosting the agriculture sector are highly commendable and necessary to ensure long-term growth and sustainability."

According to Jain, the sector is poised for a strong recovery, with growth expected to reach 3.8% in the fiscal year FY25. "This optimistic outlook is supported by several positive factors, including improved agricultural prospects and a reduction in food inflationary pressures throughout the year. The reforms implemented by the government have played a pivotal role in strengthening the agricultural ecosystem. These measures range from technological advancements to improved access to markets, credit facilities, and insurance for farmers, enabling them to navigate challenges more effectively," Jain said.

"Moreover, the focus on sustainable farming practices and the enhancement of rural infrastructure is expected to lead to higher productivity and a more resilient agricultural sector. Overall, these reforms are vital steps towards creating a more robust agricultural framework, fostering growth, and improving the livelihoods of those dependent on this sector," said Jain.

Strengthening Rural Infrastructure: Roads, Housing, Water Supply

Among other things covered by the survey was the appreciable strides made in rural connectivity. Under PMGSY (Pradhan Mantri Gram Sadak Yojana), road construction for a total of 834,695 km has been sanctioned, out of which 770,983 km has been completed up to January 9, 2025.

"Rural roads have been instrumental in providing with last-mile connectivity, linking habitations to markets, schools, and healthcare facilities," it said. With 99.6 per cent of target habitations connected, the government aimed to keep further upgrading rural roads to the style of international standards under PMGSY-IV.

On the housing front, under Pradhan Mantri Awaas Yojana-Gramin 2.69 crore houses have been constructed since 2016. The survey put forth that the scheme is about not only giving abode to people; it gives people economic progress by providing jobs and becomes an asset for financial purposes. "For most rural families, owning a house is a milestone that improves their living standards and offers economic security," the Survey said. It also concluded that 74% of sanctioned houses put women's power behind financial security.

In terms of water access, by January 27, 2025, 122 million households were provided access to tap-water connections under the Jal Jeevan Mission. It said, "The initiative has resulted in major improvements in health outcomes and a substantial reduction in drudgery for women and children in terms of water collection."

Sanitation and Healthcare Post-Pandemic

The Swachh Bharat Mission (Gramin) has manifested itself as a transformational project, with the construction of 11.8 crore toilets and 2.51 lakh community sanitary complexes. "Improved sanitation contributed positively to improved health indicator outcomes, reduced disease burden, and enhanced dignity in rural households," it said.

Healthcare access in rural areas has also experienced breathtaking progress. Because of the National Health Mission, there are presently 165,600 sub-centres, 25,400 primary health centres (PHCs), and 5,500 community health centres (CHCs) in the country. The survey stressed the role of Ayushman Bharat, saying: "The increased rural health-care infrastructure has played an extremely crucial role in post-pandemic resilience and improving health outcomes."

Building Infrastructure & Livelihood for Other Tribal Communities

The survey recognised that the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN) focuses on the development of Particularly Vulnerable Tribal Groups (PVTGs). There is an independent vertical under PMGSY, and the work will cover near 8,000 km of road construction to connect unconnected PVTG habitations by March 2028," the survey announced; up to now, 4,781.44 km of roads have been sanctioned, one step closer to integrating tribal communities in the mainstream economy.

Economic Empowerment: Rural Livelihoods and Microfinance

The Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM) has mobilised 10.05 crore rural households into 90.90 lakh Self-Help Groups (SHGs), facilitating ₹9.85 lakh crore in bank credit. "Financial inclusion through SHGs has empowered rural women, providing them with access to capital and market linkages," it noted. Additionally, the Start-Up Village Entrepreneurship Programme (SVEP) has helped 3.13 lakh rural enterprises take off, boosting rural employment and entrepreneurship. The survey also highlighted the success of the Aajeevika Grameen Express Yojana, which has 2,297 vehicles operational in 26 states, enhancing mobility and trade in remote areas.

MGNREGA: Rural Employment and Asset Creation

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) continues to be a crucial pillar of rural employment, generating 220.11 crore person-days of work in 2024-25, with women’s participation reaching 57.97%. "While MGNREGA began as a wage employment scheme, it has evolved into a durable rural asset creation program," the survey stated, noting that 71.2% of completed works under the scheme now focus on individual beneficiary projects. To ensure transparency, 99.98% of payments are processed through the National Electronic Fund Management System (Ne-FMS), and 96.3% of workers receive wages through Aadhaar-based payments.

Sustainable Development Goals (SDGs): Localizing Global Commitments

The survey underscored India's commitment to localizing SDGs at the Gram Panchayat level. "Localisation of SDGs ensures that rural development aligns with global goals, focusing on housing, sanitation, water supply, and electrification," the survey emphasised. Kerala was highlighted as a model, with its community-based governance and real-time SDG dashboard for decision-making.

Women’s Empowerment and Social Inclusion

The Gender Resource Centres (GRCs), operational in 18 states and UTs, are working towards addressing domestic violence, financial independence, and social mobility. "Gender-sensitive interventions have been integrated into rural development strategies, ensuring that women play a central role in economic and social progress," it said.

Legal and Social Security Reforms

The National Social Assistance Programme (NSAP) remains a key social security measure, supporting nine crore vulnerable citizens, including senior citizens, widows, and persons with disabilities."The government's commitment to social protection is evident from the ₹1 lakh crore annual expenditure on pension and assistance schemes," the survey stated. Legal services in rural areas have been strengthened through the Tele-Law initiative, and 313 Gram Nyayalayas have disposed of 2.99 lakh cases as of October 2024, ensuring faster justice delivery at the grassroots level.

Outlook: Balancing Growth with Welfare

The survey concluded by emphasising a welfare-driven economic growth model. "India’s growth story is built on the foundation of empowering citizens and ensuring the efficient delivery of welfare measures," the survey asserted. The survey called for trust-based governance in regulatory policies, stating, "Regulatory institutions must evolve to allow outcomes to happen without excessive bureaucratic hurdles."

"The focus on rural infrastructure, housing, and financial inclusion reflects a commitment to 'welfare for all,'" the survey noted.