Dear Sundara reddy, Village as a self contained econmomic entity was true, maybe, 100 years back. Today, due to population explosion, it cannot sustain on its own. You can see that villages that are near a bigger city and integrated with city economy have less poverty compared to remote villages which are cut-off from rest of the country.
The main problem with us now is we still have 70% population dependent on aggreculture. This was fine when our population was only 30 crores. At 120 crores, the ageculture land per person becomes so less that most of the farmers become very poor since they depend on a very small piece of land. The total amount of land and the output from it doesnot change weather 70% or 20% of population is working on it. Infact, if only 10% of population works on agreculture they can use more scientific methods and produce more output than 70% people depending on same amount of land. The main thing that we need to do not is to move most of the people dependent on agreculture to alternate employment with decent income. This is possilble only when be build more industries, SEZs, new cities.. etc. Unfortunatly, the so called protectors of the poor stop all these developments and keep farmers as "poor farmer" for ever.