Kurukshetra Magazine August 2022 - 1 | Monthly Yojana & Kurukshetra Magazine (English) - UPSC PDF Download

 Page 2


A Journal on Rural Development 
Vol. 70  No. 10  Pages  52
August 2022
Kurukshetra
Kurukshetra seeks to carry the message of Rural Development to all people. It serves as a forum for free, frank and serious discussion on the problems of Rural 
Development with special focus on Rural Uplift.
The views expressed by the authors in the articles are their own. They do not necessarily reflect the views of the Government or the organisations they work for.
The readers are requested to verify the claims in the advertisements regarding career guidance books/institutions. Kurukshetra does not own responsibility. Maps 
used  are for illustration & study purpose and may not strictly conform to the official map. Images, graphics and illustrations, wherever used, are mostly sourced from 
government channels and are indicative in nature. Final  Editing rights will vest with Kurukshetra Team.
Sales Emporia : ? Delhi - BM (I/c), Publications Division, CGO Complex, Soochna Bhavan, Lodhi Road, New Delhi-110003 (011-24365609); 
Hall No. 196, Old Secretariat, Delhi 110054 (011-23890205) ? Kolkata - BM (I/c),  Publications Division, 8, Esplanade East, Kolkata-700069 
(033-22482576) ? Mumbai - BM (I/c), Publications Division, 701, C-Wing, 7th Floor, Kendriya Sadan, Belapur, Navi Mumbai-400614 
(022-27570686) ? Chennai - BM (I/c), Publications Division, ‘A’ Wing, Rajaji Bhawan, Besant Nagar, Chennai - 600090 (044-24917673)  
? Thiruvananthapuram - BM, Publications Division, Press Road, Near Govt. Press, Thiruvananthpuram - 6950001 (0471-2330650)  
? Hyderabad - BM, Publications Division, Room No. 204, 2nd Floor, C.G.O. Towers, Kavadiguda, Hyderabad-500080 (040-27535383)   
? Bengaluru - BM (I/c), Sales Unit,  Floor, ‘F’ Wing, Kendriya Sadan, Koramangala, Bengaluru - 560034 (080-25537244)  
? Patna - BM, Publications Division, Bihar State Co-operative, Bank Building, Ashoka Rajpath, Patna-800004 (0612-2675823)  
? Lucknow - BM, Publications Division, Hall No. 1, 2nd Floor, Kendriya Bhawan, sector – H, Aliganj, Lucknow - 226024 (0522-2325455)  
? Ahmedabad -  Sales Unit, Publications Division, 4-C, Neptune Tower, 4th Floor, Nr HP Petrol Pump, Nehru Bridge Corner, Ashram Road, 
Ahmedabad Gujarat -380009 (079-26588669)  ? Guwahati - Publications Division, Assam Khadi and Village Industries Board, Ground 
Floor, MRD Road, Chandmari, Guwahati - 781003 (0361- 2668237/2664613)
CONTENT
? Changing Face of Rural Industries   
Piyush Prakash and Harshit Mishra  5
EDITOR 
Shiela Chaudhary 
Pankhuri Awasthi
JOINT DIRECTOR (PRODUCTION)
D.K.C. Hrudhainath
COVER DESIGN
Rajender Kumar
EDITORIAL OFFICE
Room No. 653,  
Publications Division,  
Soochna Bhawan, C.G.O. Complex,  
Lodhi Road, New Delhi-110003 
Phone : 011-24362859  
Email : kurukshetrajournal@gmail.com
For Subscription Enquiries,  
Grievances, Renewals and Agency  
Information, Please Contact:
Journals Unit 
Publications Division, Room No. 779,  
Soochna Bhawan, C.G.O. Complex,  
Lodhi Road, New Delhi-110 003
(Monday-Friday, 9:30 AM-6:00 PM)
Phone : 24367453  FAX: 24365610
Email : pdjucir@gmail.com
Website : publicationsdivision.nic.in
@publicationsdivision
@DPD_India
@dpd_India
For Online Sale, please log on to  
bharatkosh.gov.in/product, and for  
e-books, please visit Google Play,  
Kobo or Amazon.
Subscription* :
Inland
1 Year : ` 230
2 Years : ` 430
3 Years : ` 610
Abroad (Air Mail)
One Year
` 530 (SAARC Countries)
` 730 (Other Countries)
* Revised from April 2016  
   Issue Onwards
? Roadmap for Rural Industrialisation   
Manjula Wadhwa 32
? Rural Industries, Entrepreneurship 
and Infrastructure   
Dr. Ishita G. Tripathy 12
? Boosting Rural Income   
BS Purkayastha 17
? Agribusiness and Rural Industries   
Debabrata Samanta 36
? Export Potential of Rural Industries  
Dr. Amiya Kumar Mohapatra
 Dr. Pradeepta Kumar Samanta
 Tamanna Mohapatra 40
? Livelihood Promotion for Women 
under DAY-NRLM  
Dr. Mahi Pal 45
? Unlocking Rural Industrial System   
Dr. Neelam Patel,  
Dr. Tanu Sethi  
Dr. A. G. Adeeth Cariappa 23
Page 3


A Journal on Rural Development 
Vol. 70  No. 10  Pages  52
August 2022
Kurukshetra
Kurukshetra seeks to carry the message of Rural Development to all people. It serves as a forum for free, frank and serious discussion on the problems of Rural 
Development with special focus on Rural Uplift.
The views expressed by the authors in the articles are their own. They do not necessarily reflect the views of the Government or the organisations they work for.
The readers are requested to verify the claims in the advertisements regarding career guidance books/institutions. Kurukshetra does not own responsibility. Maps 
used  are for illustration & study purpose and may not strictly conform to the official map. Images, graphics and illustrations, wherever used, are mostly sourced from 
government channels and are indicative in nature. Final  Editing rights will vest with Kurukshetra Team.
Sales Emporia : ? Delhi - BM (I/c), Publications Division, CGO Complex, Soochna Bhavan, Lodhi Road, New Delhi-110003 (011-24365609); 
Hall No. 196, Old Secretariat, Delhi 110054 (011-23890205) ? Kolkata - BM (I/c),  Publications Division, 8, Esplanade East, Kolkata-700069 
(033-22482576) ? Mumbai - BM (I/c), Publications Division, 701, C-Wing, 7th Floor, Kendriya Sadan, Belapur, Navi Mumbai-400614 
(022-27570686) ? Chennai - BM (I/c), Publications Division, ‘A’ Wing, Rajaji Bhawan, Besant Nagar, Chennai - 600090 (044-24917673)  
? Thiruvananthapuram - BM, Publications Division, Press Road, Near Govt. Press, Thiruvananthpuram - 6950001 (0471-2330650)  
? Hyderabad - BM, Publications Division, Room No. 204, 2nd Floor, C.G.O. Towers, Kavadiguda, Hyderabad-500080 (040-27535383)   
? Bengaluru - BM (I/c), Sales Unit,  Floor, ‘F’ Wing, Kendriya Sadan, Koramangala, Bengaluru - 560034 (080-25537244)  
? Patna - BM, Publications Division, Bihar State Co-operative, Bank Building, Ashoka Rajpath, Patna-800004 (0612-2675823)  
? Lucknow - BM, Publications Division, Hall No. 1, 2nd Floor, Kendriya Bhawan, sector – H, Aliganj, Lucknow - 226024 (0522-2325455)  
? Ahmedabad -  Sales Unit, Publications Division, 4-C, Neptune Tower, 4th Floor, Nr HP Petrol Pump, Nehru Bridge Corner, Ashram Road, 
Ahmedabad Gujarat -380009 (079-26588669)  ? Guwahati - Publications Division, Assam Khadi and Village Industries Board, Ground 
Floor, MRD Road, Chandmari, Guwahati - 781003 (0361- 2668237/2664613)
CONTENT
? Changing Face of Rural Industries   
Piyush Prakash and Harshit Mishra  5
EDITOR 
Shiela Chaudhary 
Pankhuri Awasthi
JOINT DIRECTOR (PRODUCTION)
D.K.C. Hrudhainath
COVER DESIGN
Rajender Kumar
EDITORIAL OFFICE
Room No. 653,  
Publications Division,  
Soochna Bhawan, C.G.O. Complex,  
Lodhi Road, New Delhi-110003 
Phone : 011-24362859  
Email : kurukshetrajournal@gmail.com
For Subscription Enquiries,  
Grievances, Renewals and Agency  
Information, Please Contact:
Journals Unit 
Publications Division, Room No. 779,  
Soochna Bhawan, C.G.O. Complex,  
Lodhi Road, New Delhi-110 003
(Monday-Friday, 9:30 AM-6:00 PM)
Phone : 24367453  FAX: 24365610
Email : pdjucir@gmail.com
Website : publicationsdivision.nic.in
@publicationsdivision
@DPD_India
@dpd_India
For Online Sale, please log on to  
bharatkosh.gov.in/product, and for  
e-books, please visit Google Play,  
Kobo or Amazon.
Subscription* :
Inland
1 Year : ` 230
2 Years : ` 430
3 Years : ` 610
Abroad (Air Mail)
One Year
` 530 (SAARC Countries)
` 730 (Other Countries)
* Revised from April 2016  
   Issue Onwards
? Roadmap for Rural Industrialisation   
Manjula Wadhwa 32
? Rural Industries, Entrepreneurship 
and Infrastructure   
Dr. Ishita G. Tripathy 12
? Boosting Rural Income   
BS Purkayastha 17
? Agribusiness and Rural Industries   
Debabrata Samanta 36
? Export Potential of Rural Industries  
Dr. Amiya Kumar Mohapatra
 Dr. Pradeepta Kumar Samanta
 Tamanna Mohapatra 40
? Livelihood Promotion for Women 
under DAY-NRLM  
Dr. Mahi Pal 45
? Unlocking Rural Industrial System   
Dr. Neelam Patel,  
Dr. Tanu Sethi  
Dr. A. G. Adeeth Cariappa 23
Kurukshetra      August  2022 4
Our country is blessed with a diverse variety of culture and heritage. Each village 
of our country is home to various unique craft skills and artisans. This sector can be 
developed into a multi-billion-dollar industry. This sector has big potential as it holds 
the key for sustaining not only the existing set of millions of artisans, but also for an 
increasingly large number of new entrants in the crafts activity. Presently, the handicraft 
sector is contributing substantially towards employment generation and exports. Along 
with this various MSMEs, agribusinesses, and service activities are bringing a positive 
change in the lives of people of rural areas.
Recognising the weight of Rural Industries in the socio-economic conditions in rural 
India, the theme of this issue of Kurukshetra is Rural Industries. Rural industrialisation 
includes economic activities outside agriculture, carried out in villages and varying in size 
from households to small factories. Some examples of these activities are cottage, tiny, 
village and small-scale manufacturing and processing industries; and services of various 
kinds. 
Rural Industralisation acts an instrument to facilitate the transition from traditional 
and labour intensive agrarian economy to an industrialised economy with the potential 
for equitable distribution of national income. Rural industrialisation is also very crucial for 
rural economy as it increases employment opportunities, diversifies rural occupations, 
raises income and living standards, reduces exodus to urban areas and ensures social 
justice.
The lead article Changing Face of Rural Industries takes us across the history of rural 
industrialisation starting from Industrial Policy Resolution 1948 to tell the tale of how 
rural industries and their structure evolved into what we know them today. The article 
Rural Industries, Entrepreneurship and Infrastructure stresses on the fact that the role of 
MSMEs is critical in rural industrialisation. It reviews some recent announcements of the 
Government in the areas of industrialisation covering entrepreneurship, creation of an 
enabling environment for Micro, Small and Medium Enterprises, employment generation, 
and boosting exports. 
Rural industries provide rural populace an alternate and reliable source of Income. 
It also facilitates people living in rural areas to earn at par with their urban counterparts 
without migrating away from their homes, thus ensuring social justice. The article Rural 
Industrialisation: Boosting Rural Incomes throws light upon the economic aspects of 
rural industrialisation. It states that Agriculture is unable to sustain the large swathes of 
population in India, and more non-farm employment opportunities need to be harnessed. 
Here, rural-urban linkages will be crucial in driving rural transformation, and ensuring 
that the fruits of industrialisation reach rural India. Strengthening rural-urban linkages 
by connecting villages to small towns to big cities will benefit rural labour, production, 
distribution, markets and services, leading to creation of local, regional and global value 
chains. 
With this issue of our journal, we wish our readers a very Happy Independence Day 
in advance. 
Page 4


A Journal on Rural Development 
Vol. 70  No. 10  Pages  52
August 2022
Kurukshetra
Kurukshetra seeks to carry the message of Rural Development to all people. It serves as a forum for free, frank and serious discussion on the problems of Rural 
Development with special focus on Rural Uplift.
The views expressed by the authors in the articles are their own. They do not necessarily reflect the views of the Government or the organisations they work for.
The readers are requested to verify the claims in the advertisements regarding career guidance books/institutions. Kurukshetra does not own responsibility. Maps 
used  are for illustration & study purpose and may not strictly conform to the official map. Images, graphics and illustrations, wherever used, are mostly sourced from 
government channels and are indicative in nature. Final  Editing rights will vest with Kurukshetra Team.
Sales Emporia : ? Delhi - BM (I/c), Publications Division, CGO Complex, Soochna Bhavan, Lodhi Road, New Delhi-110003 (011-24365609); 
Hall No. 196, Old Secretariat, Delhi 110054 (011-23890205) ? Kolkata - BM (I/c),  Publications Division, 8, Esplanade East, Kolkata-700069 
(033-22482576) ? Mumbai - BM (I/c), Publications Division, 701, C-Wing, 7th Floor, Kendriya Sadan, Belapur, Navi Mumbai-400614 
(022-27570686) ? Chennai - BM (I/c), Publications Division, ‘A’ Wing, Rajaji Bhawan, Besant Nagar, Chennai - 600090 (044-24917673)  
? Thiruvananthapuram - BM, Publications Division, Press Road, Near Govt. Press, Thiruvananthpuram - 6950001 (0471-2330650)  
? Hyderabad - BM, Publications Division, Room No. 204, 2nd Floor, C.G.O. Towers, Kavadiguda, Hyderabad-500080 (040-27535383)   
? Bengaluru - BM (I/c), Sales Unit,  Floor, ‘F’ Wing, Kendriya Sadan, Koramangala, Bengaluru - 560034 (080-25537244)  
? Patna - BM, Publications Division, Bihar State Co-operative, Bank Building, Ashoka Rajpath, Patna-800004 (0612-2675823)  
? Lucknow - BM, Publications Division, Hall No. 1, 2nd Floor, Kendriya Bhawan, sector – H, Aliganj, Lucknow - 226024 (0522-2325455)  
? Ahmedabad -  Sales Unit, Publications Division, 4-C, Neptune Tower, 4th Floor, Nr HP Petrol Pump, Nehru Bridge Corner, Ashram Road, 
Ahmedabad Gujarat -380009 (079-26588669)  ? Guwahati - Publications Division, Assam Khadi and Village Industries Board, Ground 
Floor, MRD Road, Chandmari, Guwahati - 781003 (0361- 2668237/2664613)
CONTENT
? Changing Face of Rural Industries   
Piyush Prakash and Harshit Mishra  5
EDITOR 
Shiela Chaudhary 
Pankhuri Awasthi
JOINT DIRECTOR (PRODUCTION)
D.K.C. Hrudhainath
COVER DESIGN
Rajender Kumar
EDITORIAL OFFICE
Room No. 653,  
Publications Division,  
Soochna Bhawan, C.G.O. Complex,  
Lodhi Road, New Delhi-110003 
Phone : 011-24362859  
Email : kurukshetrajournal@gmail.com
For Subscription Enquiries,  
Grievances, Renewals and Agency  
Information, Please Contact:
Journals Unit 
Publications Division, Room No. 779,  
Soochna Bhawan, C.G.O. Complex,  
Lodhi Road, New Delhi-110 003
(Monday-Friday, 9:30 AM-6:00 PM)
Phone : 24367453  FAX: 24365610
Email : pdjucir@gmail.com
Website : publicationsdivision.nic.in
@publicationsdivision
@DPD_India
@dpd_India
For Online Sale, please log on to  
bharatkosh.gov.in/product, and for  
e-books, please visit Google Play,  
Kobo or Amazon.
Subscription* :
Inland
1 Year : ` 230
2 Years : ` 430
3 Years : ` 610
Abroad (Air Mail)
One Year
` 530 (SAARC Countries)
` 730 (Other Countries)
* Revised from April 2016  
   Issue Onwards
? Roadmap for Rural Industrialisation   
Manjula Wadhwa 32
? Rural Industries, Entrepreneurship 
and Infrastructure   
Dr. Ishita G. Tripathy 12
? Boosting Rural Income   
BS Purkayastha 17
? Agribusiness and Rural Industries   
Debabrata Samanta 36
? Export Potential of Rural Industries  
Dr. Amiya Kumar Mohapatra
 Dr. Pradeepta Kumar Samanta
 Tamanna Mohapatra 40
? Livelihood Promotion for Women 
under DAY-NRLM  
Dr. Mahi Pal 45
? Unlocking Rural Industrial System   
Dr. Neelam Patel,  
Dr. Tanu Sethi  
Dr. A. G. Adeeth Cariappa 23
Kurukshetra      August  2022 4
Our country is blessed with a diverse variety of culture and heritage. Each village 
of our country is home to various unique craft skills and artisans. This sector can be 
developed into a multi-billion-dollar industry. This sector has big potential as it holds 
the key for sustaining not only the existing set of millions of artisans, but also for an 
increasingly large number of new entrants in the crafts activity. Presently, the handicraft 
sector is contributing substantially towards employment generation and exports. Along 
with this various MSMEs, agribusinesses, and service activities are bringing a positive 
change in the lives of people of rural areas.
Recognising the weight of Rural Industries in the socio-economic conditions in rural 
India, the theme of this issue of Kurukshetra is Rural Industries. Rural industrialisation 
includes economic activities outside agriculture, carried out in villages and varying in size 
from households to small factories. Some examples of these activities are cottage, tiny, 
village and small-scale manufacturing and processing industries; and services of various 
kinds. 
Rural Industralisation acts an instrument to facilitate the transition from traditional 
and labour intensive agrarian economy to an industrialised economy with the potential 
for equitable distribution of national income. Rural industrialisation is also very crucial for 
rural economy as it increases employment opportunities, diversifies rural occupations, 
raises income and living standards, reduces exodus to urban areas and ensures social 
justice.
The lead article Changing Face of Rural Industries takes us across the history of rural 
industrialisation starting from Industrial Policy Resolution 1948 to tell the tale of how 
rural industries and their structure evolved into what we know them today. The article 
Rural Industries, Entrepreneurship and Infrastructure stresses on the fact that the role of 
MSMEs is critical in rural industrialisation. It reviews some recent announcements of the 
Government in the areas of industrialisation covering entrepreneurship, creation of an 
enabling environment for Micro, Small and Medium Enterprises, employment generation, 
and boosting exports. 
Rural industries provide rural populace an alternate and reliable source of Income. 
It also facilitates people living in rural areas to earn at par with their urban counterparts 
without migrating away from their homes, thus ensuring social justice. The article Rural 
Industrialisation: Boosting Rural Incomes throws light upon the economic aspects of 
rural industrialisation. It states that Agriculture is unable to sustain the large swathes of 
population in India, and more non-farm employment opportunities need to be harnessed. 
Here, rural-urban linkages will be crucial in driving rural transformation, and ensuring 
that the fruits of industrialisation reach rural India. Strengthening rural-urban linkages 
by connecting villages to small towns to big cities will benefit rural labour, production, 
distribution, markets and services, leading to creation of local, regional and global value 
chains. 
With this issue of our journal, we wish our readers a very Happy Independence Day 
in advance. 
Kurukshetra      August  2022 5
Piyush Prakash and Harshit Mishra
The policy makers in India have always put rural industrialisation at the centre of planning right from the First Five-Year 
Plans. Over the years, the focus shifted from protection of rural industries to development and finally promotion. Increased 
focus on building rural entrepreneurial ability and support to microenterprises remained the mainstay. However, with the 
technological disruptions and the boom of start-up culture in India, new age tech-savvy rural entrepreneurs have taken lead 
to transform the rural economy with several agri start-ups and digital service economy initiatives. 
Changing Face of Rural Industries
griculture and the allied sectors have been 
integral and instrumental to the process 
of rural development – improving the 
quality of life and economic well-being 
of people living in rural areas – as well as national 
development. In 1950s agriculture contributed to 
over 50 percent in the Gross Domestic Product (GDP) 
of India while employing more than 70 percent of 
the Indian workforce. Gradually the contribution of 
agriculture to the GDP started to fall and reached the 
point of 18.4 percent in 2019-20
1
. The percentage of 
labour force engaged fell as well but the fall was not 
as sharp as it was for the GDP contribution – 46.5 
percent of the labour force was still employed in 
agriculture in India in 2019-20
2
. 
A
1
Indian Economic Survey 2021-22
2
Periodic Labour Force participation Survey (PLFS) Report 2019-20
3
Based on data from Indian Economic Survey and World Bank Data
Figure 1: Agriculture sector contribution  
in GDP and Employment
3
 
The recent trends in agriculture sector’s 
contribution to GDP and employment show that 
despite the engagement of substantial labour 
force the agriculture sector has not grown much. 
The challenges of underemployment, disguised 
Page 5


A Journal on Rural Development 
Vol. 70  No. 10  Pages  52
August 2022
Kurukshetra
Kurukshetra seeks to carry the message of Rural Development to all people. It serves as a forum for free, frank and serious discussion on the problems of Rural 
Development with special focus on Rural Uplift.
The views expressed by the authors in the articles are their own. They do not necessarily reflect the views of the Government or the organisations they work for.
The readers are requested to verify the claims in the advertisements regarding career guidance books/institutions. Kurukshetra does not own responsibility. Maps 
used  are for illustration & study purpose and may not strictly conform to the official map. Images, graphics and illustrations, wherever used, are mostly sourced from 
government channels and are indicative in nature. Final  Editing rights will vest with Kurukshetra Team.
Sales Emporia : ? Delhi - BM (I/c), Publications Division, CGO Complex, Soochna Bhavan, Lodhi Road, New Delhi-110003 (011-24365609); 
Hall No. 196, Old Secretariat, Delhi 110054 (011-23890205) ? Kolkata - BM (I/c),  Publications Division, 8, Esplanade East, Kolkata-700069 
(033-22482576) ? Mumbai - BM (I/c), Publications Division, 701, C-Wing, 7th Floor, Kendriya Sadan, Belapur, Navi Mumbai-400614 
(022-27570686) ? Chennai - BM (I/c), Publications Division, ‘A’ Wing, Rajaji Bhawan, Besant Nagar, Chennai - 600090 (044-24917673)  
? Thiruvananthapuram - BM, Publications Division, Press Road, Near Govt. Press, Thiruvananthpuram - 6950001 (0471-2330650)  
? Hyderabad - BM, Publications Division, Room No. 204, 2nd Floor, C.G.O. Towers, Kavadiguda, Hyderabad-500080 (040-27535383)   
? Bengaluru - BM (I/c), Sales Unit,  Floor, ‘F’ Wing, Kendriya Sadan, Koramangala, Bengaluru - 560034 (080-25537244)  
? Patna - BM, Publications Division, Bihar State Co-operative, Bank Building, Ashoka Rajpath, Patna-800004 (0612-2675823)  
? Lucknow - BM, Publications Division, Hall No. 1, 2nd Floor, Kendriya Bhawan, sector – H, Aliganj, Lucknow - 226024 (0522-2325455)  
? Ahmedabad -  Sales Unit, Publications Division, 4-C, Neptune Tower, 4th Floor, Nr HP Petrol Pump, Nehru Bridge Corner, Ashram Road, 
Ahmedabad Gujarat -380009 (079-26588669)  ? Guwahati - Publications Division, Assam Khadi and Village Industries Board, Ground 
Floor, MRD Road, Chandmari, Guwahati - 781003 (0361- 2668237/2664613)
CONTENT
? Changing Face of Rural Industries   
Piyush Prakash and Harshit Mishra  5
EDITOR 
Shiela Chaudhary 
Pankhuri Awasthi
JOINT DIRECTOR (PRODUCTION)
D.K.C. Hrudhainath
COVER DESIGN
Rajender Kumar
EDITORIAL OFFICE
Room No. 653,  
Publications Division,  
Soochna Bhawan, C.G.O. Complex,  
Lodhi Road, New Delhi-110003 
Phone : 011-24362859  
Email : kurukshetrajournal@gmail.com
For Subscription Enquiries,  
Grievances, Renewals and Agency  
Information, Please Contact:
Journals Unit 
Publications Division, Room No. 779,  
Soochna Bhawan, C.G.O. Complex,  
Lodhi Road, New Delhi-110 003
(Monday-Friday, 9:30 AM-6:00 PM)
Phone : 24367453  FAX: 24365610
Email : pdjucir@gmail.com
Website : publicationsdivision.nic.in
@publicationsdivision
@DPD_India
@dpd_India
For Online Sale, please log on to  
bharatkosh.gov.in/product, and for  
e-books, please visit Google Play,  
Kobo or Amazon.
Subscription* :
Inland
1 Year : ` 230
2 Years : ` 430
3 Years : ` 610
Abroad (Air Mail)
One Year
` 530 (SAARC Countries)
` 730 (Other Countries)
* Revised from April 2016  
   Issue Onwards
? Roadmap for Rural Industrialisation   
Manjula Wadhwa 32
? Rural Industries, Entrepreneurship 
and Infrastructure   
Dr. Ishita G. Tripathy 12
? Boosting Rural Income   
BS Purkayastha 17
? Agribusiness and Rural Industries   
Debabrata Samanta 36
? Export Potential of Rural Industries  
Dr. Amiya Kumar Mohapatra
 Dr. Pradeepta Kumar Samanta
 Tamanna Mohapatra 40
? Livelihood Promotion for Women 
under DAY-NRLM  
Dr. Mahi Pal 45
? Unlocking Rural Industrial System   
Dr. Neelam Patel,  
Dr. Tanu Sethi  
Dr. A. G. Adeeth Cariappa 23
Kurukshetra      August  2022 4
Our country is blessed with a diverse variety of culture and heritage. Each village 
of our country is home to various unique craft skills and artisans. This sector can be 
developed into a multi-billion-dollar industry. This sector has big potential as it holds 
the key for sustaining not only the existing set of millions of artisans, but also for an 
increasingly large number of new entrants in the crafts activity. Presently, the handicraft 
sector is contributing substantially towards employment generation and exports. Along 
with this various MSMEs, agribusinesses, and service activities are bringing a positive 
change in the lives of people of rural areas.
Recognising the weight of Rural Industries in the socio-economic conditions in rural 
India, the theme of this issue of Kurukshetra is Rural Industries. Rural industrialisation 
includes economic activities outside agriculture, carried out in villages and varying in size 
from households to small factories. Some examples of these activities are cottage, tiny, 
village and small-scale manufacturing and processing industries; and services of various 
kinds. 
Rural Industralisation acts an instrument to facilitate the transition from traditional 
and labour intensive agrarian economy to an industrialised economy with the potential 
for equitable distribution of national income. Rural industrialisation is also very crucial for 
rural economy as it increases employment opportunities, diversifies rural occupations, 
raises income and living standards, reduces exodus to urban areas and ensures social 
justice.
The lead article Changing Face of Rural Industries takes us across the history of rural 
industrialisation starting from Industrial Policy Resolution 1948 to tell the tale of how 
rural industries and their structure evolved into what we know them today. The article 
Rural Industries, Entrepreneurship and Infrastructure stresses on the fact that the role of 
MSMEs is critical in rural industrialisation. It reviews some recent announcements of the 
Government in the areas of industrialisation covering entrepreneurship, creation of an 
enabling environment for Micro, Small and Medium Enterprises, employment generation, 
and boosting exports. 
Rural industries provide rural populace an alternate and reliable source of Income. 
It also facilitates people living in rural areas to earn at par with their urban counterparts 
without migrating away from their homes, thus ensuring social justice. The article Rural 
Industrialisation: Boosting Rural Incomes throws light upon the economic aspects of 
rural industrialisation. It states that Agriculture is unable to sustain the large swathes of 
population in India, and more non-farm employment opportunities need to be harnessed. 
Here, rural-urban linkages will be crucial in driving rural transformation, and ensuring 
that the fruits of industrialisation reach rural India. Strengthening rural-urban linkages 
by connecting villages to small towns to big cities will benefit rural labour, production, 
distribution, markets and services, leading to creation of local, regional and global value 
chains. 
With this issue of our journal, we wish our readers a very Happy Independence Day 
in advance. 
Kurukshetra      August  2022 5
Piyush Prakash and Harshit Mishra
The policy makers in India have always put rural industrialisation at the centre of planning right from the First Five-Year 
Plans. Over the years, the focus shifted from protection of rural industries to development and finally promotion. Increased 
focus on building rural entrepreneurial ability and support to microenterprises remained the mainstay. However, with the 
technological disruptions and the boom of start-up culture in India, new age tech-savvy rural entrepreneurs have taken lead 
to transform the rural economy with several agri start-ups and digital service economy initiatives. 
Changing Face of Rural Industries
griculture and the allied sectors have been 
integral and instrumental to the process 
of rural development – improving the 
quality of life and economic well-being 
of people living in rural areas – as well as national 
development. In 1950s agriculture contributed to 
over 50 percent in the Gross Domestic Product (GDP) 
of India while employing more than 70 percent of 
the Indian workforce. Gradually the contribution of 
agriculture to the GDP started to fall and reached the 
point of 18.4 percent in 2019-20
1
. The percentage of 
labour force engaged fell as well but the fall was not 
as sharp as it was for the GDP contribution – 46.5 
percent of the labour force was still employed in 
agriculture in India in 2019-20
2
. 
A
1
Indian Economic Survey 2021-22
2
Periodic Labour Force participation Survey (PLFS) Report 2019-20
3
Based on data from Indian Economic Survey and World Bank Data
Figure 1: Agriculture sector contribution  
in GDP and Employment
3
 
The recent trends in agriculture sector’s 
contribution to GDP and employment show that 
despite the engagement of substantial labour 
force the agriculture sector has not grown much. 
The challenges of underemployment, disguised 
Kurukshetra      August  2022 6
unemployment and seasonal employment remain 
key labour force issues in the agriculture sector 
among other issues such as lack of sustained 
investment, easy credit availability, climate 
related certainties, market access, etc. While 
these are critical issues to be resolved, there 
have been more concentrated policy efforts by 
the government to a) promote jobs in the MSME 
sector and digital service economy in rural areas 
and b) create self-employment opportunities 
through rural entrepreneurship. 
In this article we discuss the evolution of 
rural industries, their contribution to the national 
growth and employment, innovative disruptions 
in the rural and agriculture sector such as the rural 
digital economy and agri-startups, and the role of 
educational institutions in imparting the skills to 
innovate and sustain such disruptions. 
History of Rural Industralisation
Rural Industrialisation has been the 
high priority area for the policy makers since 
Independence. The focus has been on small 
industries as they were considered as an 
instrument to facilitate the transition from 
traditional and labour intensive agrarian economy 
to an industrialised economy with the potential 
for equitable distribution of national income
4
. This 
inclination can be seen right from the Industrial 
Policy Resolution 1948. It maintained that "Cottage 
and small scale industries have a very important role 
in the national economy. Offering as they do scope 
for individual, village or cooperative enterprise, 
and means for the rehabilitation of displaced 
persons. These industries are particularly suited for 
the better utilization of local resources and for the 
achievement of the local self-sufficiency in respect 
of certain types of essential consumer goods like 
food, cloth and agricultural implements". It was 
also recognised that these industries face the 
issues of capital, skilled labour, raw materials 
and marketing. Certain classes of stores were 
reserved exclusively for purchase from village and 
small industries and some price differentials were 
allowed to them over the products of large-scale 
industries. A number of emporia and sales depots 
for handloom, handicrafts and village industries 
have been established during the first-plan period. 
The value of purchases made from cottage and 
small-scale industries by the Directorate General of 
Supplies and Disposals increased from Rs. 66 lakhs in 
1952-53 to Rs. 105 lakhs in 1954-55. Therefore, the 
policy emphasised on the collaborate role of Central 
and state governments to safeguard such industries.
The 1956 Industrial Policy Resolution could 
be seen as a milestone in the development of 
agro and rural industries. The Parliament had 
declared socialistic pattern of society as its social 
and economic policy through a resolution in 1954. 
The then Planning Commission of India came 
up with a ‘Report of the Village and Small-Scale 
Industries (Second Five-Year Plan) Committee’, 
popularly known as the Karve Committee Report 
in the year 1955. The report recognised the 
challenges related to over centralisation of 
economic activities and moving from safeguarding 
of small-scale industries to their development. 
The recommendations were reflected in the 
IPR 1956 which stated that while such measures 
(safeguarding of small-scale industries by 
restricting the volume of production in the large-
scale sector, by differential taxation, or by direct 
subsidies) will continue to be taken, whenever 
necessary, the aim of the State policy will be to 
ensure that the decentralised sector acquires 
sufficient vitality to be self-supporting and its 
development is integrated with that of large-scale 
industry. The State will.. therefore, concentrate 
on measures designed to improve the competitive 
strength of the small-scale producers
5
. Some 128 
items were reserved for exclusive production in 
the small-scale sector. It also recognised that lack of 
technical and financial assistance, suitable working 
accommodation, and inadequacy of facilities for 
repair and maintenance are among the serious 
handicaps of small-scale producers. Extension 
of rural electrification, power at lower prices, 
organisation of industrial cooperatives, technological 
advancement in the modes of production while 
avoiding technological unemployment were few 
areas of focus. Thus, a transition from ‘safeguarding 
to development’ could be seen. 
4
Reddy CS, Reddy PM, Reddy SR. Indian Small Scale Industry: The Changing Perception. SEDME (Small Enterprises Development, 
Management & Extension Journal). 1997;24(3):19-24. doi:10.1177/0970846419970303 
5
https://niti.gov.in/planningcommission.gov.in/docs/plans/planrel/fiveyr/2nd/2planch20.html