Positive Transformation in Rural India and Agricultural Development Dr. Jayantilal Bhandari In recent times, various study reports published on the topics of transformation in rural India and the changing lives of farmers highlight that a positive transformation is taking place in rural India, and this is raising the income and living standards of farmers. Recently, on February 6, the McKinsey Global Farmers Insight Survey 2024 reported that Indian farmers are rapidly adopting digital payments. In 2024, 40% of farmers made payments digitally, compared to only 11% in 2022. The increasing adoption of digital payments is attributed to cheaper data and the UPI service. According to the report, in 2022, only 8% of farmers used crop insurance, but this figure increased to 37% in 2024, with the Prime Minister’s Crop Insurance Scheme being the major contributor. The report also revealed that 11% of farmers are using organic products in 2024, up from just 2% in 2022. Another important finding from this report is that Indian farmers are moving towards formal credit. In 2024, 36% of farmers took loans from banks, a significant increase from just 9% in 2022. Additionally, 26% of farmers used government-subsidized loans, compared to only 1% in 2022. The report also highlighted that 53% of Indian farmers rely on government subsidies for sustainable farming practices like crop rotation. The government is supporting these initiatives through various schemes, including cost reduction, carbon credit incentives, etc. It is also significant that by March 2024, India had 95.44 crore internet subscribers, with 39.83 crore rural internet users. In the same context, the recent report by the State Bank of India (SBI) research also holds importance. The report mentions that direct government assistance programs targeting the poor have significantly reduced poverty. Rural poverty has decreased at a faster rate than urban poverty. While in 2011-12, rural poverty was 25.7% and urban poverty was 13.7%, in 2023-24, rural poverty has decreased to 4.86% and urban poverty to 4.09%. According to the report, in the last 14 years, income has increased, and the per capita consumer expenditure (MPC) in urban areas has risen 3.5 times, while in rural areas, it has grown nearly 4 times. From 2009-10 to 2023-24, the MPC in urban areas has increased from ₹1984 to ₹6996, and in rural areas, it has risen from ₹1054 to ₹4122. Thus, the growth in rural areas has been greater than in urban areas. Undoubtedly, the various rural and agricultural development programs have contributed to a rapid reduction in rural poverty in the country. As of 2024, rural poverty has fallen to less than 5%. Furthermore, rural income and purchasing power have increased. Today, millions of rural households have access to clean drinking water. The Ayushman Bharat health scheme is providing better health services through 1.5 lakh health centers. With the help of digital technology, top doctors and hospitals are now connecting with rural areas. Through the PM Kisan Samman Nidhi, the government has provided ₹3 lakh crore in financial assistance to farmers. In the past decade, agricultural loans have increased by more than three times. Additionally, farmers' credit cards are now being issued to livestock and fish farmers. In the last 10 years, subsidies on crops and crop insurance have also increased. Campaigns like the Swamitva Yojana are helping villagers with property documentation. Rural youth are receiving support through schemes like Mudra Yojana, Startup India, and Stand Up India. Furthermore, programs like Digital India, sanitation, clean drinking water, and Ujjwala Yojana for clean fuel, and the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) for electricity in every household are contributing to poverty reduction in rural India. The PM Garib Kalyan Anna Yojana (PMGKAY), which provides free food grains to more than 80 crore underprivileged people, has played an important role in reducing poverty in rural India. Undoubtedly, the positive transformation in rural India, along with agriculture and rural development, has brought hope for further improvements in farmers' incomes. The Union Budget 2025-26 has come with new provisions for rural development. The budget allocation for the Ministry of Rural Development is ₹1,88,754 crore, and for the Ministry of Agriculture and Farmers Welfare, it is ₹1.71 lakh crore, which is 11% higher than last year. New programs like the Jal Jeevan Mission and BharatNet are designed to advance rural development and increase prosperity. These budget provisions are expected to play a significant role in improving the living standards of rural areas and farmers. However, there is still much to be done for the development of rural India and the progress of farmers. Currently, 95% of farmers in the country do not adopt modern farming techniques. This is due to factors like setup time, high costs, and lack of clarity about returns on investment. Another concern is that Indian farmers are lagging behind in online shopping. Around 42% of farmers report that they do not receive adequate customer service and flexible payment options from online sellers. On average, each farming family is burdened with ₹74,121 in debt. More efforts will be required to change this scenario. We hope that the government will focus on providing skill training and digital skills to the youth from rural poverty-stricken families to enhance employment opportunities. Moreover, we look forward to the government strengthening rural economies in line with the vision of a self-reliant rural India by 2047, which will rapidly increase farmers' incomes and bring about a new chapter in farmers' prosperity. Author: Dr. Jayantilal Bhandari (Renowned Economist) Address: 111, Gumasta Nagar, Indore-9 Phone: 9425478705 Contact: 0731 2482060, 2480090