India’s Rural Transformation
India’s rural landscape is undergoing a rapid, technology-driven transformation, with over 92.5% of households gaining all-weather road connectivity and 3.7 crore homes built via PMAY-G. Key drivers include massive digital adoption, 10 crore+ women in Self-Help Groups, improved sanitation (96%+ ODF Plus villages), and a shift toward non-farm income.
India’s pursuit of inclusive growth under the development framework of Sabka Saath, Sabka Vikas, Sabka Prayas, Sabka Vishwas seems to have produced measurable outcomes in recent years.
These outcomes are reflected in sustained poverty reduction, a gradual narrowing of socio-economic inequalities, and improved access to basic services. Rural transformation has been central to this process, as a large share of India’s population continues to reside in rural areas and remains dependent on public investment, local institutions, and community-based governance structures for socio-economic advancement.
It may be noted that Budget allocations for Rural Development increased from ₹87,765 crore in 2016–17 to ₹2,73,108 crore in 2026–27, representing a rise of over 211 per cent during the decade. These figures indicate a sustained fiscal commitment to strengthening rural infrastructure, livelihoods, and local institutional capacity.
Policy Shift: From Welfare Delivery to Decentralised Partnerships
An essential dimension of this transformation is the gradual shift away from a purely government-led model of development towards more community-driven, decentralised approaches.
Local governments and grassroots institutions are increasingly recognised as critical actors in planning, implementation, and monitoring of development initiatives. This transition has enabled local voices to shape development priorities, making growth processes more participatory, context-specific, and sustainable.
The 73rd Constitutional Amendment (1992) institutionalised Panchayati Raj Institutions (PRIs) as vehicles of grassroots democracy, enabling communities to participate directly in the planning, implementation, and monitoring of development initiatives. Building on this foundation, major national programmes such as the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin), formerly MGNREGS, Deendayal Antyodaya Yojana-National Rural Livelihoods Mission, Swachh Bharat Mission, and the Jal Jeevan Mission have embedded participatory mechanisms by working through panchayats, self-help groups (SHGs), and grassroots organisations.
This policy evolution reflects the principle of Jan Bhagidari, which marks a shift from beneficiary-based participation to active partnership between the state and communities. Participation is increasingly supported through capacity building, technology-enabled engagement, strengthened community institutions, and participatory planning and budgeting processes.
Fiscal decentralisation has further reinforced this approach. Direct fiscal transfers to panchayats have been increased from around ₹2.36 lakh crore under the 15th Finance Commission (2021-2026) to nearly ₹4.35 lakh crore under the 16th Finance Commission (2026-2031), thereby significantly enhancing local financial autonomy.
Social Protection Expansion and Poverty Reduction Outcomes in India
India has recorded substantial advances in expanding social protection and reducing poverty, underpinned by sustained public investments in the social sector. Coverage under social protection systems (which includes access to improved drinking water, household electrification, and rural sanitation) increased markedly from 22 percent in 2016 to 64.3 percent in 2025, reflecting a significant broadening of social security reach. This expansion has been supported by a steady rise in social services expenditure (SSE), which has grown consistently since FY22. Between FY22 and FY26 (BE), SSE grew at a compound annual growth rate (CAGR) of 12 percent, with education and health expenditures rising at 11 percent and 8 percent, respectively.
Enhancing Rural Living Standards through Basic Services
Public policy in India is oriented towards expanding equal opportunity, reducing absolute poverty, and mitigating the risk of widening inequality. Government initiatives have focused on expanding access to affordable housing, food and social security, financial inclusion, universal basic services, and affordable healthcare. Together, these interventions have played a central role in improving living standards, particularly in rural areas.
The scale and outcomes of these interventions are reflected in the Ministry of Statistics and Programme Implementation’s (MOSPI’s) Sustainable Development Goal (SDG) National Indicator Framework Progress Report, 2025, which documents substantial advances across multiple development indicators.
Accessibility to Safe Drinking Water
Access to safe drinking water in rural areas has reached near-universal coverage. It has seen transformative progress under the Jal Jeevan Mission (JJM), launched in 2019 to achieve Har Ghar Jal. At inception, only 3.23 crore rural households (17 per cent) had tap water connections. By November 2025, an additional 12.50 crore households were covered, raising total coverage to about 15.74 crore households. Therefore, the proportion of rural households using improved drinking water sources increased from 94.6 per cent in 2015–16 to 99.6 percent in 2024–25.
The Economic Survey 2025–26 reports that independent assessments have identified significant social and health benefits, including substantial time savings for women, increased participation in economic activities, and reduced incidence of waterborne diseases. Significant improvements in sanitation and electricity access have further complemented these gains.
Accessibility to Sanitation Facilities
The Swachh Bharat Mission (Grameen) was launched in 2014 to achieve Open Defecation Free (ODF) status nationwide by October 2019, and all districts were declared ODF by 2019–20. As of December 31, 2025, over 96 percent of villages under the Swachh Bharat Mission have attained ODF Plus status. An ODF Plus village is defined as one that sustains its ODF Status, ensures solid and liquid waste management, and remains visually clean. As of February 9, 2026, there are 5.68 lakh ODF Plus villages in our country, of which 5.29 lakh have suitable arrangements for solid waste management and 5.46 lakh have suitable arrangements for liquid waste management. So far, 2,331 plastic waste management units, 2.70 lakh community sanitary complexes, and 12.05 crore household toilets have been constructed.
Ensuring Universal Household Electrification
Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) was launched in 2017 to achieve universal household electrification by providing electricity connections to all willing un-electrified households in rural areas and all willing poor households in urban areas in the country. In 2017, the total number of un-electrified households was estimated at 3 crores, against which 2.86 crore households across the country were electrified by FY 2021-22. As of March 31, 2019, all States have reported 100% electrification of all the willing un-electrified households identified.
Ensuring Last-Mile Access through Rural Roads Connectivity
Rural connectivity is a foundational pillar of rural development, directly contributing to poverty reduction by enhancing access to healthcare, education, markets, and employment opportunities. Launched in 2000, the Pradhan Mantri Gram Sadak Yojana (PMGSY-I) was designed to provide all-weather road connectivity to eligible unconnected habitations. As of mid-January 2026, more than 99.6 percent of eligible habitations had been connected. Under PMGSY-I, a total of 1,63,665 roads spanning 6.25 lakh kilometres, along with 7,210 bridges, have been completed.
Launched in 2013, the Pradhan Mantri Gram Sadak Yojana (PMGSY-II) focused on strengthening and upgrading the existing rural road network. As of mid-January 2026, a total of 6,612 roads covering 49,087 kilometres, along with 749 bridges, had been completed under this phase. Subsequently, PMGSY-III, approved in 2019, aims at consolidating 1.25 lakh kilometres of critical rural routes linking habitations to agricultural markets, educational institutions, and healthcare facilities. Under PMGSY-III, more than 1.02 lakh kilometres of roads and 1,734 bridges have been completed to date. Reflecting sustained policy emphasis on rural connectivity, budgetary allocations for PMGSY increased from ₹12,581 crore in 2016-17 to ₹19,000 crore in 2026–27.
Digitalisation and Technology-Led Service Delivery in Rural Areas
Digitalisation has emerged as a critical enabler of inclusive and efficient service delivery in rural India. The integration of administrative reforms with technology adoption has enhanced transparency, participation, and accountability in the implementation of rural programmes, while simultaneously expanding access to public services in remote and underserved areas. Aadhaar seeding has developed rapidly, Aadhaar-based payment systems have been widely adopted, and electronic wage disbursements have become nearly universal. Programme monitoring has been strengthened through large-scale geo-tagging of assets, with a growing proportion of assets being created at the individual household level.
The SVAMITVA scheme uses drone-based mapping to formalise rural property rights, reduce disputes, and enhance access to credit and government services. As of December 2025, surveys covered 3.28 lakh villages and generated 2.76 crore property cards across 1.82 lakh villages. Complementing this, the Namo Drone Didi initiative supports women’s participation in the digital economy through drone-based agricultural and mapping services, with 1,094 drones distributed to SHG Drone Didis in 2023–24.
Land governance reforms under the Digital India Land Records Modernisation Programme (DILRMP) have further advanced digitisation, with 99.8 percent of rural Records of Rights digitised, 95.73 percent of Sub-Registration Offices computerised, and Unique Land Parcel Identification Numbers (ULPIN/Bhu-Aadhaar) assigned to 36.67 crore land parcels, strengthening transparency and access to land-related services.
Women-Led Institutions as Drivers of Rural Transformation
Women-led institutions are central to the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM), positioning women as key drivers of rural transformation.
The programme has been allocated ₹19,200 crore in the Union Budget 2026-27. Through Self-Help Groups (SHGs) and their federations, the programme provides the rural households with a collective platform for savings, access to credit, and community support. To date, 10.05 crore women have been mobilised into 90.09 lakh SHGs, expanding financial inclusion and collective economic action.
Beyond financial intermediation, the programme supports women farmers through sustainable agriculture and livestock interventions, promotes non-farm micro-enterprises, and facilitates livelihood opportunities for landless women based on local resources. Anchored in the Panchsutra and extended through the Dashsutra framework, Self-Help Groups (SHGs) increasingly contribute to community development across health and nutrition, education, local governance, access to entitlements, and sustainable livelihoods, positioning them as central institutions of community-led rural development and social transformation.
