This paper aims to examine the socio-economic changes in rural areas of the underdeveloped regions of India, focusing on Uttarakhand State. The state has been characterized by "Money Order Economy" depending on the money sent from migrant workers. However the state has shown a new development tendency such as industrialization and tourist development after the economic liberalization since 1991. We made an intensive household survey of a mountain village near Nainital that has grown rapidly as a hill resort. The results obtained are as follows. Various employment opportunities were provided in this village. This is due to the development of commercial agricultural production in the village and the availability of various off-farm employment chances offered in the labor market of Nainital. In terms of household economy, a number of households typically have an economic dependence on income from off-farm employment. On the other hand, there are an extremely high number of households engaged in agricultural work like growing vegetables. The expansion of employment opportunities and subsequent improvement of the household economy are mainly attributed to higher educational levels. This case highlights a notable example of a village in India's underdeveloped region that has grown out of a backward situation and has shown a development tendency.

This paper is a revised English version of Okahashi et al. (2011) originally appeared in Geographical Sciences.