RURAL BUSINESS HUBS

Transforming Rural India…

The implementation of economic reforms in India has been showing a positive impact in the form of
rising growth rate and development across all the sectors, making the country not just a global
economic power but also a robust economy.
The RBH concept has its origins in
Urban India has been the change driver for the economy,
and the government has been concentrating to match up to a similar and successful initiative
the infrastructural requirements of India's burgeoning cities of the government of Thailand,
which have been the main recipients of this economic called project One-Tambon-One
progress. As a result of this the divide between rural & Product (OTOP), which in turn was
urban parts of the country has been widening, despite inspired by the Japanese, One
efforts to bridge the social & economic gap. Village One Product Programme
(OVOP).
To bridge the widening Bharat- India divide, a unique
Public private Panchayati partnership initiative by the The Indian government has taken
Ministry of Panchayati Raj and the Confederation of Indian
cues from both these projects and
Industry, Rural Business Hubs is a big stride in this direction.
has adopted the foreign model
RBH is a first-of-its-kind PPP Partnership aiming to usher in
after making appropriate and
prosperity to the rural areas of the country and all sections
of the society by reaping the benefits of rapid economic necessary modifications required
growth unleashed through the economic reforms and for the Indian scenario to
synergistically harnessing the resource/ skill rich rural areas "upgrade and up value the skill
and technology/ marketing skills of the industry, the entire and the products made by the
process mediated/ facilitated by empowered PRIs. villagers,” to transform the image
of rural India…
While there are several similar schemes of the Government
such as the Cluster Development Scheme, Spoorthi, Growth
Pole, various schemes under Development Commissioner
Handicrafts and Handlooms, the uniqueness of the RBH scheme is that it brings together diverse
stakeholders such as the private sector, the PRIs and the poor to foster and permeate economic growth
into and for rural India, since the most pressing challenges that India faces today is to 'include' the rural
economy into its present robust economic growth.

Charting New Challenges…

Given the huge potential of the RBH concept, the Ministry of Panchayati Raj (MoPR) intends to carry out
a comprehensive evaluation of the ongoing Central Sector Scheme on Rural Business Hubs, with an
objective of restructuring the scheme in the light of national and international experiences in the field as
well as documenting best practices of this model and other similar well functioning models.

The Rural Business Hub (RBH) initiative is aimed at moving from mere livelihood support to promoting
rural prosperity, increasing rural non-farm incomes and augmenting rural employment.  The objective of
the scheme is to spread the benefits of India’s rapid economic development to the rural areas through
the medium of Panchayati Raj Institutions (PRIs). Rural Business Hub is a participatory development
model for the rural areas of the country that is built on the platform of 4-P, i.e. Public-Private-
Panchayat-Partnership.

The resources required for setting up RBH are to be mobilized primarily through convergence of ongoing
Central/State Schemes, programs of partnering institutions etc. However, a token funding is available
from the budget of Ministry of Panchayati Raj.

The Present Status

In consultation with State Governments, thirty five districts have been identified for focused RBH
intervention. Services of reputed organizations have been enlisted as Gateway Agencies for
supporting Panchayats in identification of potential RBHs and their development. RBH workshops were
held in twenty six districts and champion products were identified.

Revised Guidelines have been issued on August 13, 2009 allowed holding of sub-district level
workshop.  According to the Guidelines, funds can be provided for setting up of RBH in all the 250
districts covered under the Backward Region Grant Fund scheme of the Ministry of Panchayati Raj and
all the districts in the North Eastern Region.

What We Intend to do???

ACCESS is holding a thematic retreat for 2010 on Rural Business Hubs to foster understandings, learning,
as well contribute and garner suggestions and support on critical issues, which are directly linked to
practice and contemporary challenges. The basic objective is to deepen the knowledge and experience
of professionals on critical issues, to set the stage for formulating plans or projects, to showcase and
refine specific aspects of plans or projects, resolve conflicts, and work toward consensus.

The Retreat will deal around certain issues like

1. How to bring in more participation from the private sector

2. Ownership and coordination at the state level for program convergence
3. The role of facilitating and gateway agencies
4. Partnerships with the chamber of commerce
5. Interrelations and convergence with PURA, Livelihood Missions and various schemes
6. Form Institutional structures in which public and private interference happens
7. Resource allocation for program sustainability