Development of Rural Enterprises through Public Private Participation.

A new situation is emerging in India. Very rarely in history have we come across such a constellation: an ascending economic trajectory, rising foreign exchange reserves, reducing inflation rates, global recognition of technological competence, energy of 540 million youth, umbilical connectivities of 20 million people of Indian origin abroad, and the interest shown by developed countries to invest in our engineers and scientists, including in new R&D centers.
The Economic boom being witnessed in India is slowly percolating to the Rural areas. Policy makers have noted that unequal development in India can have a debilitating affect in sustaining the economic growth. The Rural Economy in India has shown a different story. Over the years the Rural India have benefited from the growth process and the rural Economy have strengthened. The Corporate Sector in India have been actively working with the Government machinery at the village level and the NGO’s to form a strategic partnership to develop the Rural areas in India. This form of Partnership is not only focused on developing Entrepreneurs and Rural Enterprises but also it is being extended in the areas of Health, Education, Natural Resource Management and enhancing livelihood options.

The association of the Industry with the rural areas has created a paradigm model which is leading to the economic empowerment of the Rural Area. The Indian Industry led by Confederation of Indian Industry has been actively focusing on the development of rural enterprises and rural markets. An example is the Rural Business Hubs, a concept propounded by CII and the Ministry of Panchayathi Raj. CII in partnership with the Ministry of Panchayati Raj is rolling out Rural Business Hubs in Rural areas to help facilitate economic activity in the rural areas which are likely to emerge as the biggest growth markets in the near future. Under the RBH plan, industry, both large and small will come together with farmers or local artisans to enhance the market value of rural products with the objective of market access for the rural poor and profitability across the value chain and creating enterprises in the long run.

Indian Industry believes that that India's rural transformation cannot be brought about by the government alone. Nor can the efforts of a few enterprises make a decisive difference. Only an inspired public-private partnership can transform lives and landscapes in rural India. Indian Industry have demonstrated that it is possible to create and sustain a model that bring together the government, the Industry , the NGO’s and the community on a single platform in supporting and developing rural enterprises.. Indian Industry is partnering with the Government and the local NGO’s in significantly widening its farmer partnerships to embrace a host of value-adding activities: creating livelihoods by helping poor tribals make their wastelands productive; investing in rainwater harvesting to bring much-needed irrigation to parched dry lands; empowering rural women by helping them evolve into entrepreneurs; enhancing livestock quality to significantly improve dairy productivity; providing infrastructural support to make schools and contributing to the development of the rural.

The Corporate sector is also engaged in actively promoting rural enterprises. The Indian Industry is evolving a public private partnership approach in developing these enterprises. India Rural areas are dependent on Agriculture and other allied activities to provide livelihoods for the majority of the population. For India, to meet its goal of reducing poverty by half by 2015 and also to reduce rapid rural-urban migration, non farm economic opportunities in rural areas need to expand. The informal rural economy is largely unregulated and faces crucial resource constraints particularly finance, skills, new technology and knowledge and Management. Here the need for public private participation emerges.

The Indian private sector with its expertise and technological excellence can complement the efforts of the Government in building up rural enterprises and providing the market access for the rural enterprises ultimately leading to economic empowerment and better standard of living. Such a public private partnership approach will lead to market facilitation processes by identifying the business sector and strengthening the competetiveness of the rural economy. Such a partnership also will bring in innovate business ideas and facilitate the sharing of information and best practices which can lead to creation of innovative rural business enterprises