NCERT Class 11 Economics Rural Development

RURAL DEVELOPMENT

6.1 INTRODUCTION 

In Chapter 4, we studied how poverty was a major challenge facing India. We also came to know that the majority of the poor live in rural areas where they do not have access to the basic necessities of life. Agriculture is the major source of livelihood in the rural sector. Mahatma Gandhi once said that the real progress of India did not mean simply the growth and expansion of industrial urban centres but mainly the development of the villages. This idea of village development being at the centre of the overall development of the nation is relevant even today. Why is this so? 

Why should we attach such significance to rural development when we se  around us fast growing cities with large industries and modern information technology hubs? It is because more than two-third of India’s population depends on agriculture that is not productive enough to provide for them; one-third of rural India still lives in abject poverty. That is the reason why we have to see a developed rural India if our nation has to realise real progress. What, then, does rural development imply?

6.2 WHAT IS RURAL DEVELOPMENT?

Rural development is a comprehensive term. It essentially focuses on action for the development of areas that are lagging Giving them better and more affordable access to healthcare, sanitation facilities at workplaces and homes and education for all would also need to be given top priority for rapid rural development. It was observed in an earlier chapter that although the share of agriculture sector’s contribution to GDP was on a decline, the population dependent on this sector did not show any significant change. Further, after the initiation of reforms, the growth rate of agriculture sector decelerated to 2.3 per cent pe  annum during the 1990s, which waslower than the earlier years. Scholars identify decline in public investment since 1991 as the major reason for this. They also argue that inadequate infrastructure, lack of alternate employment opportunities in the industry or service sector, increasing casualisation of employment etc. further impede rural development. The impact of this phenomenon can be seen from the growing distress witnessed among farmers across different parts of India. Against this background, we will critically look at some of the crucial aspects of rural India like credit and marketing systems, agricultural diversification and the role of organic farming in promoting sustainable development. 

6.3 CREDIT AND MARKETING IN RURAL AREAS

Credit: Growth of rural economy depends primarily on infusion of capital, from time to time, to realise higher productivity in agriculture and non-agriculture sectors. As the time gestation between crop sowing and realisation of income after production is quite long, farmers borrow from various sources to meet their initial investment on seeds, fertilisers, implements and other family expenses of marriage, death, religious ceremonies etc.

At the time of independence, moneylenders and traders exploited small and marginal farmers and landless labourers by lending to them on hig interest rates and by manipulating the accounts to keep them in a debt-trap. A major change occurred after 1969 when India adopted social banking and multiagency approach to adequately meet the needs of rural credit. Later, the National Bank for Agriculture and Rural Development (NBARD) was set up in 1982 as an apex body to coordinate th activities of all institutions involved in the rural financing system. The Green Revolution was a harbinger of major changes in the credit system as it led to the diversification of the portfolio of rural credit towards production- oriented lending.

EXERCISES

1. What do you mean by rural development? Bring out the key issues in rural development.

2. Discuss the importance of credit in rural development.

3. Explain the role of micro-credit in meeting credit requirements of the poor.

4. Explain the steps taken by the government in developing rural markets.

5. Why is agricultural diversification essential for sustainable livelihoods?

6. Critically evaluate the role of the rural banking system in the process of rural development in India.

7. What do you mean by agricultural marketing?

8. Mention some obstacles that hinder the mechanism of agricultural marketing.

9. What are the alternative channels available for agricultural marketing? Give some examples.

10. Explain the term ‘Golden Revolution’.

11. Explain four measures taken by the government to improve agricultural marketing.

12. Explain the role of non-farm employment in promoting rural diversification.

13. Bring out the importance of animal husbandry, fisheries and horticulture as a source of diversification.

14. ‘Information technology plays a very significant role in achieving sustainable development and food security’ — comment.

15. What is organic farming and how does it promote sustainable development?

16. Identify the benefits and limitations of organic farming.

17. Enlist some problems faced by farmers during the initial years of organic farming.

Please refer to attached file for NCERT Class 11 Economics Rural Development