Important Schemes related to Rural Economy in India

In India, out of the 121 crore population, 83.3 crores (nearly 70% of the population) live in rural area. The overall growth rate of population has sharply declined, according to the Census 2011. For the first time since independence, the absolute increase in population is more in urban areas than in rural areas. The slowing down of the overall growth rate of population is due to the sharp decline in the growth rate in rural areas, while the growth rate in urban areas remains almost the same.



  1. Self-Help Groups – Self-Help Group (SHG) is a small voluntary association of poor people, preferably from the same socio-economic background. They come together for the purpose of solving their common problems through self-help and mutual help.

    The SHG promotes small savings among its members. The savings are kept with a bank.

  2. MGNREGA – MGNREGA is an Indian labour law and social security measure that aims to guarantee the ‘right to work’.

    It aims to enhance livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.

  3. Pradhan Mantri Gram Sadak Yojana(PMGSY) – The Pradhan Mantri Gram Sadak Yojana (PMGSY), was launched by the Government of India to provide connectivity to unconnected Habitations as part of a poverty reduction strategy.

    Government of India is endeavoring to set high and uniform technical and management standards and facilitating policy development and planning at State level in order to ensure sustainable management of the rural roads network.

  4. Pradhan Mantri Awaas Yojana (PMAY) – Pradhan Mantri Awas Yojna (PMAY) is a mission started with an aim ‘Housing For All’ (HFA) scheme by NDA Government to be achieved by the year 2022, that is when India will be completing its 75 years of Independence. The mission started in 2015 and will be attained in seven years i.e., during 2015 – 2022.

    This Housing for All (HFA) scheme is envisioned with the objectives of bringing a ‘Pucca house’ for every family in urban cities with water connection, toilet facilities, 24×7 electricity supply and complete access.

  5. Deendayal Upadhyaya Gram Jyoti Yojana – Deen Dayal Upadhyaya Gram Jyoti Yojana is a Government of India scheme designed to provide continuous power supply to rural India.
  6. Deendayal Antyodaya Yojana- National Rural Livelihood Mission – Aajeevika – National Rural Livelihoods Mission (NRLM) was launched by the Ministry of Rural Development (MoRD), Government of India in June 2011.

    The Mission aims at creating efficient and effective institutional platforms of the rural poor, enabling them to increase household income through sustainable livelihood enhancements and improved access to financial services. In November 2015, the program was renamed Deen Dayal Antayodaya Yojana (DAY-NRLM).

  7. Prime Minister’s Employment Generation Programme (PMEGP) – Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy programme administered by the Ministry of Micro, Small and Medium Enterprises, Government of India. Khadi & Village Industries Commission (KVIC), is the nodal agency at national level for implementation of the scheme.

    At state level the scheme is implemented through KVIC, KVIB and District Industries center. Objectives of the PMEGP are to generate employment opportunities in rural as well as urban areas through setting up of self employment ventures.

    And to provide continuous and sustainable employment to a large segment of traditional and prospective artisans and unemployed youth, so as to help arrest migration of rural youth to urban areas.

  8. National Rural Drinking Water Programme (NRDWP) – The aim and objective of National Rural Drinking Water Programme (NRDWP) is to provide every rural person with adequate safe water for drinking, cooking and other basic domestic needs on a sustainable basis, with a minimum water quality standard, which should be conveniently accessible at all times and in all situations.
  9. Swachh Bharat Mission (Gramin) – To accelerate the efforts to achieve universal sanitation coverage and to put focus on sanitation, the Govt launched the Swachh Bharat Mission on 2nd October, 2014.

    It has two Sub-Missions, the Swachh Bharat Mission (Gramin) and the Swachh Bharat Mission (Urban), which aims to achieve Swachh Bharat by 2019, as a fitting tribute to the 150th Birth Anniversary of Mahatma Gandhi, which in rural areas shall mean improving the levels of cleanliness in rural areas.


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