Rural infrastructure is the fundamental for the socio-economic development of a country. Well-developed roads provide several socio-economic welfares to the people. Roads are the mainstay for the agro based economy, increase the agricultural productivity. Roads provide access to the people in terms of reach. About 40% of village people of this nation are not linked by all season -weather roads. India is having road linkage of 56.03 lakh kms, which is the second biggest in the world. While the road transport is a vigorous vein to India’s economy, the pulse of fabrication has not kept up with the exponential rise in motorized vehicles. As roads contribute 4.7% towards India’s GDP, compared to railways that contribute around 1%. Agreeing to one of the study, it is projected that India will require to invest 41.7 trillion for road developments to upkeep the rising GDP growth. The present research intends to know whether the government Initiative through Pradhan Mantri Gram Sadak Yojna (PMGSY) has strengthened rural economy and to what extent the people have derived benefits from such Scheme. The primary data was collected consists of 400 samples for which different statistical tools were used like Factor Analysis, Regression Analysis, Correlation and ANOVA. During the analysis it was observed that the scheme has benefitted people and contributed towards the economic development in number of ways. Better road connectivity have made the life of people ease in terms of market connectivity, education access to towns and access to jobs in urban areas. Further, the respondents have been facing a challenge of transport facility which is not available with ease and least impact has been found on agriculture. Further, suggestions have been put forward to make the scheme fruitful for the people and to eradicate the problems related to the scheme by committing to responsibility and accountability.