Chapter-6 Rural Development
“India lives in villages,” said Mahatma Gandhi
6.1 Introduction:
Two-thirds of India’s population depends on agriculture and one-thirds of rural India
still lives in absolute poverty.
6.2 What is rural development? (1 Mark) [important]
It refers to the over-all development of the village economy.
The rural development includes:
a) Development of human recourses
b) Development of health, education and skills
c) Effective implementation of land reforms
d)Development of physical infrastructure-like roads, schools, hospitals, markets,
telecommunication, irrigation, electricity and sanitation etc.
e) Improve the standard of living through alleviating poverty.
6.3 Credit and Marketing in Rural Areas:
I] Credit System in Rural India:
India’s rural economy primarily depends on infusion of money capital to ensure highly
agricultural productivity per hectare and encourage allied activities.
To support this Government of India established a separate financial institution for
agricultural credit that is NABARD in 1982.
Expand NABARD. (1 Mark)
National Bank for Agriculture and Rural Development.
NABARD was established in 1982.
Over a period of time other financial institutions came forward to provide credit
facilities to agricultural sector, they are:
a) Commercial Bank
b) Land Development Banks
c) Co-operative Banks
d) Private Bank and
e) Regional Rural Banks (RRBs).
Government at present, is encouraging local bodies in rural areas for financial self-reliance
these groups are called SHGs.
Expand SHGs. (1 Mark)
Self-Help Groups.
The Economic Survey 2022-2023 there is 1.2 Crore Self-Help Groups in India.
Highlights of Self-Help Groups:
a) People oriented groups
b) Empowers rural people especially women
c) Improves the decision making skills
d) Encourages co-operative mind-set
e) Easy to generate funds out of their small earning.
Rural Banking-A Critical Appraisal:
From the last four decades there has been an expansion in the institutional rural credit
and had a positive response from the banks as well as from the farmers. But after 1990s
onwards almost all banks have had a bad experience related agricultural credit, because of
following reasons:
i) High defaults from farmers
ii) Non-payment of loan interests
iii) Government’s interference
iv) Misuse of agriculture loans
v) Drastic fall in profits to banks.
6.4 Marketing System in India:
What is agricultural marketing? (2 Marks)
It is process that involves the grading, assembling, storage, processing, placing,
transportation and distribution of variety of agricultural produce across the country.
At present the agricultural marketing is inadequate in India. So the Government of India has
taken the following steps:
1) Regulation of markets
2) Provide physical infrastructure-Godowns, Cold storages etc.
3) Encourage co-operative marketing
4) Assurance of ‘Minimum Support Price’ [MSP]
5) Maintenance of buffer stock
6) Expansion of Food Corporation of India
7)Effective implementation of Public Distribution System (PDS)
8) Expansion of Regulated Market Commissions (RMCs)
Emerging Alternate Marketing Channels:
Sl.No Name of the Market State/s
1 Apni Mandi Punjab, Haryana and Rajasthan
2 Hadaspar Mandi Pune and Maharastra
3 Rythu Bazar Andhra Pradesh and Telangana
4 Uzhavar Sandies Tamil Nadu
6.5 Diversification into Productive Activities:
Two aspects of Diversification
a) Change in Cropping Pattern b) Shifts of workers
means, cultivating varieties of from agricultural to other allied
crops in a year. Activities like poultry, fisheries.
Expand TANWA. (1 Mark)
Tamil Nadu Women in Agriculture
What is agro-based industry? (1Mark)
It is an industry primarily depends on agricultural raw-materials.
Give two examples of agro-based industry. (1Mark)
a) Sugar Mills and b) Cotton Textile Mills.
Animal Husbandry:
What is animal husbandry? (1 Mark)
It refers to rearing of domestic animals along with the agricultural activities.
Give two examples of animal husbandry. (1 Mark)
1) Poultry and 2) Cattle/Goat rearing.
Milk Production (White Revolution)
What is operation flood?
It is system where all the farmers pool their collected milk packed and distributed through co-
operatives.
Fisheries:
Development of fisheries and aquatic species.
Horticulture:
Development and cultivating variety of horticultural crops, such as fruits, vegetables,
tuber crops, flowers, medicinal and aromatic plants and spices.
6.6 Sustainable Development and Organic Farming:
What is sustainable development? [1 Mark]
It refers to the preserving the present environment and passing the same to the next generation.
Strategies of sustainable development:
a) Protect the natural environment- both biotic (living) and abiotic (non-living) bodies.
b) Reduce various types of pollution.
c) Simple living
d) Avoid the use of chemical and fossil-fuels, toxic pesticides, insecticides etc.
e) Adopt organic farming
f) Maintain ecological balance.
Organic Farming:
What is organic farming? (1 Mark)
It refers to a system of adopting natural way of cultivation of crops.
Benefits of Organic Farming:
State the benefits of organic farming. [2 Marks]
Following are the benefits:
i) Use of locally available natural resources.
ii) It is cost-effective or cheaper
iii) Gives quality produce
iv) High nutritional value
v) Protects the fertility
vi) Healthy and tasty food
vii) Environmental friendly
viii) Exportable market.
6.7 Conclusion:
Rural development is as important as urban development in India. Government has
many schemes and programmes but what is lacking is effective enforcement and peoples
participation.
Sl. No Revolutions Related to
1 Green Rice and Wheat
2 Golden Fruits
3 White [Operation Flood] Milk Production
4 Yellow Sunflower
5 Blue Fish/Prone
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