Rural–urban Linkages for Development of Rural Economy in Assam: A Social Accounting Matrix Approach

Abstract

There is always a close and very complex linkage between rural and urban areas. However, failure to properly harness the linkages between rural and urban sectors does not help either rural or urban. To counter this and to ensure development of rural economy, strengthening the linkage between rural and urban areas is important. Studies have identified that promotion and enhancement of food-processing industries is a major key to strengthen rural–urban linkages for development of rural economy. In this article, an attempt has been made to examine the means to increase the strength of rural–urban linkages by promoting agriculture–industry interface for development of rural economy in Assam, a state of the North East India. A social accounting matrix analysis has been carried out to examine the impact of a food processing industry on a neighbouring village of the food processing industry for proper/fruitful rural–urban linkages in the state. The positive economic impact of the industry on the village confirms the enormity of impact a food processing industry can have on the neigbouring villages. The article concludes by advocating for setting up of more food processing industries in Assam for reducing rural–urban divide and ensuring development of rural economy.