Abstract: Assam is the most important part of North East India with huge amount of natural resources such as forests resources, water resources & mineral resources like petroleum, natural gas, coal, limestone etc. Despite these resources, the region is still facing serious problems of unemployment and poverty. Most of the people of Assam are living in rural areas. But the people of rural areas are still backward. This paper tries to analyze the causes of backwardness of rural areas of Assam. The main reasons of backwardness are ineffective implementation of government policies, misutilisation of loan, unawareness and prevalence of child labour etc. This paper focuses mainly prevalence of child labour as a cause of rural backwardness in Assam.