Rural Economics deals with the application of economic principles in understanding and developing rural areas. In general, rural areas are geographical areas located outside towns and cities. According to the Census of India, the basic unit for rural areas is the revenue village. Rural economy refers to villages, and rural community refers to people living in villages. Rural areas have problems like backwardness of agriculture, low income , low employment opportunities, poverty, low infrastructural development, low illiteracy, low labour
productivity, lower prices of agricultural products, surplus labour force, larger population, high level of migration and high dependency on natural resources and nature. According to the 2011 Population
Census, there are 6,40,867 villages in India and 68.84 percent of the 121crore total population live in rural areas.