Cash Still King in Rural India, But Digital Transactions Surge Amidst Massive Employment & Skilling Initiatives
In rural India, cash remains the primary payment method, yet digital transactions via UPI have surged. Meanwhile, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has provided employment to over 11 crore rural households and 289 crore rural dwellers as of 15th December 2022.
The rural landscape in India is vast, housing over 65% of the population and 68% of its youth. Rural development, encompassing economic advancement and social reform, is crucial. Skilling is identified as a key strategy to tackle development challenges in both agricultural and non-farm sectors.
The rural economy can be bolstered by creating suitable livelihood opportunities and skilling initiatives. The unemployment rate in rural India stands at 6.40% as of 18th January 2023. To address this, the Government is implementing schemes such as MGNREGS, DDU-GKY, RSETIs, PMKVY, and PMEGP for employment generation and skill development.
Green jobs and digital skilling are emerging as prominent areas due to technological advancements and India's digitisation drive. Access to credit in rural areas has significantly improved, with agricultural credit growing by approximately 10% over the last five years.
While cash is still king in rural India, digital transactions are gaining traction. Employment opportunities under MGNREGA have been extensive. Skilling initiatives are vital for rural development, with green jobs and digital skilling emerging as promising avenues. Access to credit has improved, setting a positive trajectory for the rural economy.
