Drivers of Rural Transformation in India: An Empirical Analysis of Economic Growth, Poverty Reduction, and Urbanization (2010-2020)

Author(s)	Mr. ANURAG VIKRAM SINGH, Dr. SHILPA SREE R, Mr. DINESH KUMAR, Mr. PRADEEP AGRAWAL
Country	India
Abstract	This research empirically investigates drivers of rural transformation in India during the period 2010-2020, specifically the contributions of economic growth, poverty reduction, and urbanization. In an application of Principal Component Analysis (PCA), the research derives a composite Rural Transformation Index (RTI) to reflect complex development outcomes. In an application of an Autoregressive Distributed Lag (ARDL) model, this research investigates short-run relationships between GDP per capita (GDPPC), Headcount Poverty Ratio (HPR), and Urbanization Rate (URB). Findings reveal that GDPPC contributes most strongly positively toward RTI (β = 0.82), followed by poverty reduction (β = -0.75 for HPR), while urbanization has moderate spillover effects (β = 0.31). The results reflect the critical need for growth-centered policies, targeted poverty reduction programs, and improved rural-urban connectivity for rural transformation in a sustainable manner.
Keywords	Rural transformation, Economic growth, Poverty reduction, Urbanization, PCA, ARDL model, India
Field	Sociology > Economics
Published In	Volume 7, Issue 4, July-August 2025
Published On	2025-08-04
DOI	https://doi.org/10.36948/ijfmr.2025.v07i04.53005
Short DOI	https://doi.org/g9wjgg

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