Existing literature highlights how “city-centric” development strategies concentrate on urban issues while neglecting rural areas. As a result, these urban centric approaches indirectly contribute to the underdevelopment of rural area. It is, therefore, imperative to formulate policies that specifically address the challenges of rural impoverishment. Sustainable development demands a holistic approach that aims at addressing the basic needs of both urban and rural populations while ensuring balanced progress across socioeconomic, cultural, political, and ecological dimensions. Rural development is critical for achieving sustainable growth across South Asia due to the region’s predominantly rural population. Moreover, agriculture-as a key component of rural economy still has significant contribution to the national economies. This chapter examines the historical background of rural development in South Asia, perspectives from both developing countries and regional governments, and the roles of non-governmental organizations (NGOs). In addition, it attempts to explore the challenges faced in implementing rural development strategies. Finally, the chapter proposes a rural-centric development model as a pathway to sustainable and inclusive growth.