Experts have stated that in order to accelerate traditional economic activity as well as the new economy, which is primarily focused on circularity, investments must be made in districts and rural areas.
In India, the rural economy accounts for less than half of the GDP but employs about 68% of the labor force.
To achieve inclusive and long-term growth, districts must accelerate the socioeconomic level of their populations.
According to Amit Vatsyayan, Leader GPS-Agriculture, Livelihood, Social and Skills, EY India, significant development has been generated by investments in non-farm, rural infrastructure, and agriculture.
The revival of the rural economy depends on programs like financial inclusion, community institutions, rural digitalization, and scale-appropriate technologies. It will be crucial to develop new business models that enable rural communities to create value and rethink districts as economic corridors, he said.
As overall sustainability becomes a top priority, concentrating on elevating rural communities to the status of champions of circularity has considerable promise.
As six states account for 60% of the rural economy (Uttar Pradesh, Bihar, Maharashtra, West Bengal, Madhya Pradesh, and Rajasthan), experts stressed that when creating the rural investment strategy, it will be essential to take a customized approach that takes particular obstacles into account.
In the meantime, India’s female entrepreneurs are a major force behind the country’s economic expansion and employment creation.
With over 10 million self-help groups (SHGs) formed, they are believed to have over Rs 7,000 crore in savings and an exceptionally low non-performing asset (NPA) rate of just 2.01%. These figures make the case for investing in assisting women in starting their own businesses very strong.
In India, women-owned micro, small, and medium-sized businesses, or MSMEs, have produced remarkable outcomes, employing 11% more women than men-owned MSMEs and accounting for one-third of all new job creation.
Additionally, they reported a 19% increase in monthly net income and a 12% increase in monthly revenue, which suggests improved cost optimization and income growth.
According to Vatsyayan, “it is crucial to invest in building a robust ecosystem that provides access to critical business services such as finance, markets, skills, networks, and mentoring in order to facilitate women’s entrepreneurship in India.”
