Abstract

The present paper argues that there is an absence of a clear policy of rural industrialization in India to absorb labour from agriculture that can help increase labour productivity and improve rural incomes. Agricultural growth, combined with clear policy of rural industrialization, is important for an equitable rural–urban growth. To this end, equitable land distribution, rural infrastructure and services, human capital development (literacy and health) and governance are very crucial—in the attainment of all of which China attained a fair degree of success. Therefore, these are some of the lessons that Indian policymakers may take from the Chinese model of rural development.

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