Transforming Rural Economies: The Innovative REZ Model in Jonha Panchayat

Author: Abhishek Singh , Manager, TRI

A Vision for Rural Prosperity

Jonha Panchayat, located 30-40 km from Ranchi, the capital of Jharkhand, is a region rich in natural resources, tourism potential, and agricultural opportunities. Recognizing these strengths, an innovative Rural Economic Zone (REZ) model has been introduced, serving as a live demonstration of the "Whole of Economy and Whole of Society" approach. This initiative, spearheaded by a locality-based compact consisting of self-help groups (SHGs), Gram Panchayat leaders, youth, and local administration, seeks to drive sustainable development and rural prosperity through the consistent use of design methods.

The model exemplifies how structured design methods can foster rural prosperity. Jonha’s proximity to Ranchi ensures market access, rising aspirations, and mobilized leadership eager for change. Traditionally, community-based organizations, panchayat institutions, and local administration have operated in silos despite having common development goals. The REZ initiative aims to bridge these gaps by fostering collaboration. Through inclusive and bottom-up planning mechanisms such as the Village Prosperity and Resilience Plan, Youth Development Plan, and Gram Panchayat Development Plan, stakeholders are collectively shaping a sustainable development trajectory.

Strengthening Livelihoods and Economic Growth

A major objective of the REZ initiative is to achieve a significant increase in household income, aiming for a significant jump through a saturation approach. Additionally, the initiative focuses on diversifying the workforce by engaging youth in secondary and tertiary sectors while ensuring significant improvements in access to services, information, and entitlements. A baseline study revealed that the average household income was ?60,000, with over 80% of households dependent on the primary sector. However, aspirations for transition into secondary and tertiary sectors were high. In response, the initiative deploys design methods to create user-centric solutions within a holistic framework.

To consolidate efforts, a Locality Compact, known as Virasat Samiti, was formed to establish a shared vision for the Panchayat’s development. The initiative revolves around five major development pillars: Economic Development by strengthening the primary sector while expanding into secondary and tertiary sectors, Community Well-being through improved access to essential services and utilities, Infrastructure Strengthening to enhance service delivery mechanisms, Institutional Strengthening by fostering ownership and convergence, and Youth Engagement and Development to nurture future leaders and entrepreneurs.

A critical aspect of the REZ initiative is the creation of economic hubs designed to drive economic activity. The Window to World of Opportunities (WoW) Hub supports youth and women by providing career guidance, economic opportunities, and access to sports and external networks. Other hubs focus on agro-processing, market development, public utilities, and renewable energy, contributing to the Panchayat’s long-term financial sustainability. These hubs have been strategically designed using design methods to ensure efficiency and impact.

A Model for Sustainable Development

The impact of the REZ initiative is evident in sectoral interventions and their outcomes. In the primary sector, agriculture and livelihood activities have seen remarkable improvements. Household incomes have seen a significant increase annually due to diversified crop cultivation, enhanced irrigation facilities, and the introduction of fruit orchards. Currently, 85% of households remain engaged in the primary sector, but with improved market linkages and training programs, agricultural sustainability has been strengthened. In the secondary and tertiary sectors, entrepreneurship and employment opportunities have expanded significantly. Over 150 youth have been trained and placed in various employment sectors, while more than 50 entrepreneurs have received support through incubation and mentoring programs. Additionally, business idea banks and collaborative networks have been established to encourage innovation and economic resilience. The WoW Hub, a state-of-the-art facility, plays a crucial role in providing access to digital services, career guidance, and enterprise incubation. It also offers recreational activities, mentorship programs, and capacity-building workshops, fostering holistic youth development in the region.

The Rural Economic Zone (REZ) model in Jonha Panchayat is proving to be a transformative approach to rural development. By integrating economic activities with community well-being and infrastructure development, the initiative is setting a precedent for sustainable rural economies. The emphasis on collaboration, innovation, and localized leadership is not only driving economic growth in Jonha but also paving the way for the model’s replication in other rural regions across India. The success of Jonha stands as a blueprint for ensuring inclusive growth, economic resilience, and sustainable prosperity in rural communities.