<b>Rural Development in India Issues and Challenges</b> India is one of the largest populated countries. Indian economy is developing and stands 5th on the global rank. The contribution of the rural economy is prominent as a vast population is still an inhabitant of rural areas. The rural economy is governed by agricultural practice. Therefore, it contributes substantially to the Indian economy. As it is involved in revenue generation. However, the industrial revolution generated a nexus for other fundamental elements of the economy. Rural areas are generally an underdeveloped area. But looking at the current scenario of a pandemic, the Indian rural economy is being the backbone. As massive reverse migration is seen during the COVID situation, knowing that the village lifestyle is cheap and sustainable.The rural economy encompasses agricultural, forestry, fishing and aquaculture, handicrafts, dairy, tourism, mining, transport, trade, repair and construction, community and personal services.The challenges in rural areas are massive. Some general challenges are Illiteracy, unemployment, malnutrition, lack of infrastructure, transportation, medical facility, fundamental needs electricity, drinking water, sanitation, communication , and geographical inaccessibility. While person specific challenges are carelessness towards knowledge, equipment, storage facilities, limited access to advanced tools, logistics, financial constrain, migration for employment, traditionalism, and conservatism. In general, a rural area or countryside is a geographic area that is located outside towns and cities with less number of facilities like services and amenities. “All population, housing, and territory not included within an urban area. Whatever is not urban are considered rural.” U.S. H.H.S . Rural areas as those areas with a population of less than 49,000 tier 3 to tier 6 cities typical rural areas have a low population density and small settlements RBI . Almost 70 of India’s population living in rural areas contribute to a great chunk of the Indian economy. In rural areas, a large number of populations are dependent on agriculture for their income. Though different countries have different definitions of rural for statistical and administrative purposes, all these rural areas are equally important for the sustainable development of the country and the rural system development should be considered as a part of the country’s development. But due to a lack of concern for the development of the rural system, people in these areas are plagued with many problems and the rural system of the country is getting crippled day by day. To achieve the overall development of the nation there is a need to concentrate more on the rural areas to implement the policies and development measures. There are several barriers to the development of the rural areas, to alarm the decision makers, policymakers, and planners regarding the challenges of the rural system it is necessary to study the problems. The major problems that have been identified by literature review in many rural areas are poverty, illiteracy, unemployment, homelessness, crime, social evils, lower living standards, lack of facilities, services, and health. From the past 20 years in India, there is rapid growth and development in cities and urban but not in rural areas, this is the main factor for out migration from rural areas to urban areas. For India’s economy to be strong the rural economy needs to grow World Bank but rural areas are plagued with numerous problems like illiteracy unemployment, and lack of basic infrastructure like schools, colleges, hospitals, sanitation, etc., Many policies and programs are implemented by the government organizations with the major objective to promote the well being of rural communities, but some of these problems directly or indirectly responsible for the mismanagement of policies, schemes, and programs. If these problems are not addressed properly, they further increase and completely affect the rural system and negatively impact the complete balance of the country s development. This research paper mainly aims to discuss the problems of the rural areas in four main components they are problems related to people, agriculture, infrastructure, economy, leadership, and administration these problems guide to the conclusions why they must be concerned and the need to address them in planning and development of rural areas. rural, development, India, economy, services, organizations, government, leadership, schemes 1407-1414 Issue-6 Volume-1 Dr. Anil Kumar Yadav