Vol. 1, Issue 4, Part C (2015)

Abstract
India is known as agricultural as well as rural based economy. However, rural society is traditional, conservative and detached from the sources of innovation. In industrialized nations where local economies are integrated components of the national economy and national policies reach citizens in all parts of the nation, it is reasonable to ask weather specific attention should be paid to rural areas, rather than simply relying upon national programs. To reduce the migration rate we need to have a sustainable solution like providing employment opportunities to rural public. Industrial development has greater potential in expansion of economic activities and it will eventually help in development of rural assets along with income generation, development of infrastructure, raising standard of living and per capita income for rural people. Industrialization act as an instrument both of the creating capacity to absorb excess labour power and of catering for the diversification of the market required at the higher stages of economic development. Rural areas are specialised more in agriculture while Industries are located mostly at urban location giving a weak rural-urban linkage which ultimately results in lower pace of development in rural area. This paper is an attempt to analyze the rural economy, fact about small scale industries need of industrialization and industrial sector and especially its role in the development of rural areas in India.