Rural development is a comprehensive term. It essentially focuses on action for the development of areas that are lagging behind in the overall development of the village economy. Some of the areas which are challenging and need fresh initiatives for development in rural India include:

• Development of human resources including – literacy, more specifically, female literacy, education and skill development – health, addressing both sanitation and public health.
• Land reforms with technical reforms allow the farmers to use modern techniques and methods which increase the productivity and aggregate volume of farm output. Land reforms also lead to efficient and optimum use of land, enabling large scale production.
• Development of the productive resources of each locality.
• Infrastructure development like electricity, irrigation, credit, marketing, transport facilities including construction of village roads and feeder roads to nearby highways, facilities for agriculture research and extension, and information dissemination.
• Special measures for alleviation of poverty and bringing about significant improvement in the living conditions of the weaker sections of the population emphasising access to productive employment opportunities.