The 20th century witnessed a significant change in population from rural to urban areas in most of the countries of the world. In the last two decades, India has experienced accelerated economic growth after the launch of economic reforms in 1991. The economic reforms resulted in loosening the hold of government in many sectors, which has led to the concentration of semi-urban areas across the countries. The economic reforms of 1991 played a big role in the decentralization of powers and it has encouraged many entrepreneurs to invest in India. In the early stages of Indian industrialization, both rural and urban economies immensely suffered from the adverse effects of capitalism and the exploitation of natural resources. Capitalism-oriented industrialization had the requirement of a productive and well transformed agricultural sector. In this paper, we are going to highlight the need and strengthening of agriculture from the grassroots level and enlightening educated youth regarding the benevolence and benefits of self-employment and agriculture. Strengthening of village economies are most recommended for the sustainable development of Indian economy. Increasing trend of farm housing and involvement of educated youth gives hope for solving the dilemma of balanced urban rural development. This paper reviews some of the main interpretations in urban rural development dilemma. It explores the relationship between the primary and secondary sector as well as the rural and urban economies. It examines the parochial strategy of development of urban sector by neglecting rural economy.