Since I will be working in rural India, do I need to know the local language?

Yes, it is very important to be able to read and write in the local language. For example: if you are posted to District Institute, Sirohi, you should be able to read, write and speak in Hindi.

Answer

Yes, it is very important to be able to read and write in the local language. For example: if you are posted to District Institute, Sirohi, you should be able to read, write and speak in Hindi.