Poverty is one of the major problems facing India. An estimated 30–40 percent of the population lives in poverty. Four out of five of India's poor live in rural areas. About 70% of the people live in more than 550, 000 villages, and the remainder in more than 200 towns and cities.
Rural population being highly scattered and unorganized, organizing and institutionalizing the activities of rural population and proving work on a regular basis are really challenging task. Either work is to be provided by the units to them to be done at their residence or industries are to be started in the rural areas in order to bring them into an organized entity. Some of the efforts undertaken by the Govt. in the past have not made any perceivable impact on the employment generation in rural India. Industrial co-operatives were started with the mission of rural industrialization for different crafts in pursuance of the recommendation of Karve committee 1955. These societies mobilized the scattered rural skill to a certain extent. But it failed in its re-mission. As these societies could not ensure regular employment and provide fair wages, members were withdrawing from the societies. As a result most of the societies remain currently defunct.
DIC is playing an important role to generate employment in rural areas through various schemes. It is trying to bridge the technological gap through providing training programs for entrepreneurship development which includes project preparation, market research, product development, technological knowhow financial assistance etc.
