In this article , we briefly explore how the Union Budget 2025-26 is shaping the future of rural India.
India is home to 6.65 lakh villages, with 2.68 lakh Gram Panchayats and a vast network of rural local bodies that form the backbone of the country’s economy . With an ambitious allocation of ₹1,88,754.53 crore for rural development, this year's budget emphasis on employment generation, women’s empowerment, education, and infrastructure development.
The Jal Jeevan Mission has now been extended until 2028 with a citizen-centric approach under the Jan Bhagidhari model, fostering community participation. The goal is ambitious—100% coverage of safe drinking water across rural India, with financial backing and state-specific agreements in place to ensure long-term sustainability.
Under the Bharatnet Project, the government is expanding broadband connectivity to all government secondary schools and primary healthcare centers in rural areas. This intends to improve education and healthcare accessibility, bridging the digital divide. India Post, is taking on an even bigger role in driving economic growth. With 1.5 lakh rural post offices, the India Post Payment Bank, and 2.4 lakh Dak Sevaks, it is now evolving into a key financial and logistics service provider for rural entrepreneurs, MSMEs, and self-help groups.
Under the Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM), one of the most remarkable aspects of this initiative is its success in mobilizing rural poor households into a structured network of Self-Help Groups (SHGs). So far, 10.05 crore rural poor households have been brought into 90.90 lakh SHGs, fostering collective economic strength and financial independence. To ensure a robust support system, 5.96 lakh Village Organizations (VOs) and 32,439 Cluster-Level Federations (CLFs) have been established across 7,143 blocks in 745 districts, creating a strong foundation for rural development.
More than 1.37 lakh SHG women have been trained and positioned as Banking Correspondent Sakhis, bringing essential banking services to remote villages and enhancing financial literacy. The initiative has also provided a significant ₹49,284 crore in capital support to SHGs, ensuring that rural entrepreneurs have the resources to build sustainable businesses. Additionally, ₹9.85 lakh crore in bank credit has been accessed by SHGs, demonstrating the growing financial strength and credibility of these women-led groups.
Under farm livelihoods, DAY-NRLM plays a crucial role in supporting rural households engaged in agriculture. More than 2.64 crore households are now cultivating agri-nutri gardens, improving both food security and nutrition levels. To help small and marginal farmers, 36,205 Custom Hiring Centres have been set up, allowing them to rent farm tools and equipment at affordable prices. This initiative is reducing input costs, increasing productivity, and enhancing profitability for farmers. Furthermore, 4.30 crore Mahila Kisan have been integrated into structured livelihood programs, ensuring that women farmers receive equal access to opportunities and resources.
Under non-farm livelihood’s Start-Up Village Entrepreneurship Programme (SVEP), nearly 3.13 lakh enterprises have been established across 280 blocks in 31 states and union territories, providing employment opportunities beyond traditional farming. Meanwhile, the Aajeevika Grameen Express Yojana has been instrumental in improving rural connectivity, with 2,297 vehicles operating across 26 states, ensuring better access to markets, healthcare, and educational institutions for remote communities.
According to the National Multidimensional Poverty Index (MPI) Report, the proportion of people living in poverty dropped from 24.85% to 14.96% between 2015-16 and 2019-21, lifting 13.5 crore individuals out of poverty. Connectivity has also played a crucial role in rural development. As of March 2024, India had 954.40 million internet subscribers, out of which 398.35 million belonged to rural areas. This growing access to the internet may bridge the digital divide, enabling better education, healthcare, and economic opportunities in remote villages.
Rural income inequality is on a downward trend, with the Gini coefficient falling from 0.266 in FY22-23 to 0.237 in FY23-24. Additionally, rural wages saw consistent growth of over 4% per month between April and September 2024. Agricultural wages grew by 5.7% for men and 7% for women, while non-agricultural wages increased by 5.5% for men and 7.9% for women. Since its launch in December 2000, the Pradhan Mantri Gram Sadak Yojana (PMGSY) initiative has improved rural connectivity through all-weather roads. As of January 2025, over 8,34,695 kilometers of roads have been sanctioned, with 7,70,983 kilometers completed, ensuring that 99.6% of targeted habitations are now connected.
The Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) was launched on 20th November 2016 to provide affordable housing for the poorest segments of society. Since its inception, 2.69 crore houses have been completed, offering millions of rural families a safe and dignified place to call home. Mission Amrit Sarovar was launched on 24th April 2022, with a strong focus on water conservation and rejuvenation. The goal was to develop 75 Amrit Sarovars, or ponds, in each district of the country. To date, 68,843 such ponds have been constructed, ensuring water security and sustainable agricultural practices in water-stressed regions.
Gram Nyayalayas initiative aims at bringing justice to the grassroots level. Introduced in 2008, this act ensures that rural communities have access to speedy and affordable legal services. As of October 2024, there are 313 operational Gram Nyayalayas, which have already resolved over 2.99 lakh cases between December 2020 and October 2024.
The National Social Assistance Programme (NSAP), launched on 15th August 1995, was designed to provide financial assistance to vulnerable sections of society. Today, its reach has expanded significantly, with 3.09 crore Below Poverty Line (BPL) beneficiaries receiving support under central NSAP, while 5.86 crore individuals are covered under state pension schemes. That means a total of 9 crore beneficiaries are now safeguarded under the nation’s pension safety net. With an annual expenditure of over ₹1 lakh crore.
The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) contributes to generating wage-based employment, ensuring financial stability for millions of rural households while strengthening rural infrastructure. In 2013-14, the scheme was allocated ₹33,000 crore, which has significantly increased to ₹86,000 crore for the financial year 2024-25 at the budget estimate stage. This increased funding highlights the rising demand for wage employment . The impact of MGNREGS can be measured in work generated under the program. Between FY 2006-07 and FY 2013-14, the scheme successfully created 1,660 crore person-days of employment. In the following decade 2,945 crore person-days of work got generated between FY 2014-15 and FY 2024-25.
Launched on 11th October 2014, the Saansad Adarsh Gram Yojana (SAGY) is a initiative aimed at holistic rural development by providing basic amenities and opportunities for sustainable growth. Under this scheme, Members of Parliament (MPs) play a direct role in identifying and adopting villages, ensuring focused development efforts in collaboration with local administrations. As of January 2025, a total of 3,361 Gram Panchayats (GPs) have been adopted. Furthermore, 3,120 Gram Panchayats have successfully uploaded their Village Development Plans, outlining structured roadmaps for growth and infrastructure expansion. Over 2,30,206 projects have been completed across the country, ranging from improving public amenities to promoting social welfare programs. These projects intends to enhance the quality of life for rural residents, ensuring that villages evolve into self-sufficient and progressive communities.
The government launched the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN) in November 2023 to improve the socio-economic conditions of PVTGs by providing access to better infrastructure, education, healthcare, and livelihood opportunities. As of January 2025, 1,557 roads covering a total of 4,781.44 kilometers have been sanctioned.
National Rural Health Mission (NRHM), has made strides in expanding healthcare infrastructure, ensuring that primary, secondary, and specialized care are more accessible to rural residents. Today, India's rural healthcare system is supported by a network of 165,600 Sub-Centres (SCs), 25,400 Primary Health Centres (PHCs), and 5,500 Community Health Centres (CHCs). A significant component of NRHM’s success lies in its strengthened workforce. The program has deployed 32,900 doctors at PHCs and 4,400 specialists at CHCs. Additionally, the presence of 79,300 nursing staff, 27,700 pharmacists, and 23,200 lab technicians across PHCs and CHCs has played a crucial role in improving maternal care, child health services, immunization programs, and general medical treatment in rural areas.
Part 1
Source : Press Information Bureau Delhi
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