As of 2020, the rural sector contributes approximately 45% to India's total GDP.

Agriculture is the largest contributor to rural GDP, accounting for approximately 40% of the total.

Rural development has contributed to poverty reduction in India by increasing agricultural productivity, creating non-farm employment opportunities, and improving access to education and healthcare.

Rural development leads to increased use of modern farming techniques, improves access to irrigation and fertilizers, and promotes crop diversification, all of which contribute to increased agricultural productivity.

Rural development creates non-farm employment opportunities by promoting the growth of small and medium enterprises, encouraging the development of rural infrastructure, and providing skill development training to rural youth.

Rural development leads to the construction of new schools and hospitals in rural areas, provides scholarships and financial assistance to rural students, and trains rural healthcare workers, all of which contribute to improved access to education and healthcare.

Rural development contributes to the overall economic growth of India by increasing the purchasing power of rural households, creating demand for goods and services produced in urban areas, and attracting foreign investment.

Some of the challenges faced in promoting rural development in India include lack of infrastructure, limited access to credit and financial services, and migration of skilled labor from rural to urban areas.

Some of the government initiatives aimed at promoting rural development in India include Pradhan Mantri Gram Sadak Yojana, National Rural Employment Guarantee Scheme, and Deen Dayal Upadhyaya Gram Jyoti Yojana.

Rural development can be made more sustainable by promoting the use of renewable energy sources, adopting climate-resilient agricultural practices, and investing in rural education and skill development.