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Rural Market Environment
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Kartik Raichura
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Rural Market Environment - July 9th, 2008

Nearly 700 million Indians live in 600,000 villages across rural India. Connectivity of village complexes providing economic opportunities to all segments of people is an urgent need. We need to innovate to increase connectivities to the villages, making clusters out of them even while retaining their individuality.
Source of Income

The majority of households had reported more than one source of income, the major share of around 70 to 80 percent always coming from the activity pursued as defined by their occupational categories. The second major source of income in urban areas was 'other sources' which includes incomes from house property, interest, dividend, pension, etc., while that in rural areas was 'farming'. The majority of the rural households in rural area belong to agriculture-self employed farmers (30.59 percent) and agricultural workers (32.64 percent) whereas salaried people comprise the majority in urban areas (55.4 percent) (Table 1.1).

Table 1.1 Source of Income by Occupation Groups

Occupation Group
Source of Income
Farming
Non-Farm
Salary
Agr Wage
Non-Agr Wage
Others
All Sources
Rural







Self-emp farming
81.76
2.05
3.60
5.36
1.96
5.28
100.00
Self-emp non-farming
11.08
78.75
2.98
1.76
0.35
5.05
100.00
Salary
8.08
1.88
79.79
2.55
0.99
6.71
100.00
Agr wage
8.57
0.87
0.20
79.95
4.67
5.74
100.00
Non-agr wage
6.71
0.30
0.22
3.61
80.42
8.74
100.00
Others
16.45
2.32
5.81
6.05
0.96
68.41
100.00
All groups
35.37
11.16
17.42
20.29
7.56
8.20
100.00
Urban







Self-emp farming
74.01
1.43
4.63
2.28
2.65
14.50
100.00
Self-emp non-farming
0.85
82.81
2.54
0.10
0.57
13.14
100.00
Salary
0.85
1.57
84.04
0.06
0.40
13.09
100.00
Agr wage



72.80
19.25
7.95
100.00
Non-agr wage
0.81
1.12
3.52
1.38
81.66
11.51
100.00
Others
0.88
5.95
12.51
0.15
1.87
78.64
100.00
Ail groups
1.72
20.74
54.07
0.74
4.94
17.78
100.00
All India







Self-emp farming
81.56
2.04
3.62
5.28
1.98
5.51
100.00
Self-emp non-farming
4.96
81.18
2.72
0.78
0.48
9.88
100.00
Salary
2.89
1.66
82.84
0.76
0.56
11.29
100.00
Agr wage
8.32
0.85
0.20
79.75
5.09
5.80
100.00
Non-agr wage
4.51
0.61
1.45
2.78
80.88
9.77
100.00
Others
6.95
4.54
9.90
2.45
1.52
74.66
100.00
All groups
20.49
15.40
33.63
11.65
6.40
12.44
100.00

The self-employed sector generated 35.8 percent of total income at the country level. About one-third of the total income was generated through salaries. A comparison of the MIMAP survey results with the similar survey conducted by NCAER in 1975-76 revealed a significant decrease in the share of income from farming from 37.8 percent to 20.5 percent, an increase in share of income from salaries from 22.7 percent to 33.6 percent and other incomes from 7.2 percent to 12.4 percent during the last two decades.

Nearly 700 million Indians live in 600,000 villages across rural India. Connectivity of village complexes providing economic opportunities to all segments of people is an urgent need. We need to innovate to increase connectivities to the villages, making clusters out of them even while retaining their individuality.
Source of Income

The majority of households had reported more than one source of income, the major share of around 70 to 80 percent always coming from the activity pursued as defined by their occupational categories. The second major source of income in urban areas was 'other sources' which includes incomes from house property, interest, dividend, pension, etc., while that in rural areas was 'farming'. The majority of the rural households in rural area belong to agriculture-self employed farmers (30.59 percent) and agricultural workers (32.64 percent) whereas salaried people comprise the majority in urban areas (55.4 percent) (Table 1.1).

Table 1.1 Source of Income by Occupation Groups

Occupation Group
Source of Income
Farming
Non-Farm
Salary
Agr Wage
Non-Agr Wage
Others
All Sources
Rural







Self-emp farming
81.76
2.05
3.60
5.36
1.96
5.28
100.00
Self-emp non-farming
11.08
78.75
2.98
1.76
0.35
5.05
100.00
Salary
8.08
1.88
79.79
2.55
0.99
6.71
100.00
Agr wage
8.57
0.87
0.20
79.95
4.67
5.74
100.00
Non-agr wage
6.71
0.30
0.22
3.61
80.42
8.74
100.00
Others
16.45
2.32
5.81
6.05
0.96
68.41
100.00
All groups
35.37
11.16
17.42
20.29
7.56
8.20
100.00
Urban







Self-emp farming
74.01
1.43
4.63
2.28
2.65
14.50
100.00
Self-emp non-farming
0.85
82.81
2.54
0.10
0.57
13.14
100.00
Salary
0.85
1.57
84.04
0.06
0.40
13.09
100.00
Agr wage



72.80
19.25
7.95
100.00
Non-agr wage
0.81
1.12
3.52
1.38
81.66
11.51
100.00
Others
0.88
5.95
12.51
0.15
1.87
78.64
100.00
Ail groups
1.72
20.74
54.07
0.74
4.94
17.78
100.00
All India







Self-emp farming
81.56
2.04
3.62
5.28
1.98
5.51
100.00
Self-emp non-farming
4.96
81.18
2.72
0.78
0.48
9.88
100.00
Salary
2.89
1.66
82.84
0.76
0.56
11.29
100.00
Agr wage
8.32
0.85
0.20
79.75
5.09
5.80
100.00
Non-agr wage
4.51
0.61
1.45
2.78
80.88
9.77
100.00
Others
6.95
4.54
9.90
2.45
1.52
74.66
100.00
All groups
20.49
15.40
33.63
11.65
6.40
12.44
100.00

The self-employed sector generated 35.8 percent of total income at the country level. About one-third of the total income was generated through salaries. A comparison of the MIMAP survey results with the similar survey conducted by NCAER in 1975-76 revealed a significant decrease in the share of income from farming from 37.8 percent to 20.5 percent, an increase in share of income from salaries from 22.7 percent to 33.6 percent and other incomes from 7.2 percent to 12.4 percent during the last two decades.

Nearly 700 million Indians live in 600,000 villages across rural India. Connectivity of village complexes providing economic opportunities to all segments of people is an urgent need. We need to innovate to increase connectivities to the villages, making clusters out of them even while retaining their individuality.
Source of Income

The majority of households had reported more than one source of income, the major share of around 70 to 80 percent always coming from the activity pursued as defined by their occupational categories. The second major source of income in urban areas was 'other sources' which includes incomes from house property, interest, dividend, pension, etc., while that in rural areas was 'farming'. The majority of the rural households in rural area belong to agriculture-self employed farmers (30.59 percent) and agricultural workers (32.64 percent) whereas salaried people comprise the majority in urban areas (55.4 percent) (Table 1.1).

Table 1.1 Source of Income by Occupation Groups

Occupation Group
Source of Income
Farming
Non-Farm
Salary
Agr Wage
Non-Agr Wage
Others
All Sources
Rural







Self-emp farming
81.76
2.05
3.60
5.36
1.96
5.28
100.00
Self-emp non-farming
11.08
78.75
2.98
1.76
0.35
5.05
100.00
Salary
8.08
1.88
79.79
2.55
0.99
6.71
100.00
Agr wage
8.57
0.87
0.20
79.95
4.67
5.74
100.00
Non-agr wage
6.71
0.30
0.22
3.61
80.42
8.74
100.00
Others
16.45
2.32
5.81
6.05
0.96
68.41
100.00
All groups
35.37
11.16
17.42
20.29
7.56
8.20
100.00
Urban







Self-emp farming
74.01
1.43
4.63
2.28
2.65
14.50
100.00
Self-emp non-farming
0.85
82.81
2.54
0.10
0.57
13.14
100.00
Salary
0.85
1.57
84.04
0.06
0.40
13.09
100.00
Agr wage



72.80
19.25
7.95
100.00
Non-agr wage
0.81
1.12
3.52
1.38
81.66
11.51
100.00
Others
0.88
5.95
12.51
0.15
1.87
78.64
100.00
Ail groups
1.72
20.74
54.07
0.74
4.94
17.78
100.00
All India







Self-emp farming
81.56
2.04
3.62
5.28
1.98
5.51
100.00
Self-emp non-farming
4.96
81.18
2.72
0.78
0.48
9.88
100.00
Salary
2.89
1.66
82.84
0.76
0.56
11.29
100.00
Agr wage
8.32
0.85
0.20
79.75
5.09
5.80
100.00
Non-agr wage
4.51
0.61
1.45
2.78
80.88
9.77
100.00
Others
6.95
4.54
9.90
2.45
1.52
74.66
100.00
All groups
20.49
15.40
33.63
11.65
6.40
12.44
100.00

The self-employed sector generated 35.8 percent of total income at the country level. About one-third of the total income was generated through salaries. A comparison of the MIMAP survey results with the similar survey conducted by NCAER in 1975-76 revealed a significant decrease in the share of income from farming from 37.8 percent to 20.5 percent, an increase in share of income from salaries from 22.7 percent to 33.6 percent and other incomes from 7.2 percent to 12.4 percent during the last two decades.
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Re: Rural Market Environment
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Naresh Kumar
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Institute: ASBM
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Posts: 17
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Re: Rural Market Environment - July 18th, 2008

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