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LAND POLLUTION
Unit Structure :
1.0 Objectives
1.1 Preface
1.2 What is pollution
1.3 Main types of pollution
1.4 What is land pollution
1.5 Causes of land pollution
1.5.1 Natural causes
1.5.2 Man-made causes
1.6 Increase in sewage and increasing popul ation
1.7 Summary
1.8 Self Study
1.9 Reference Books
1.0 OBJECTIVES
After reading this chapter, you will understand the following -
1) To study the importance of land.
2) Monitoring of land work.
3) To study the concept of pollution and land pollution.
4) To study the importance of land in jagri -business.
5) To review the causes of land pollution.
1.1 PREFACE
The importance of natural recourses in human development is extra -
ordinary. Human development depends on natural resources. No matter,
how much scientific progress a human being can make, he cannot do
anything beyond the laws of nature. In a developing country like India, the
availability of natural resources such as land, water, forest, air, plants,
animals etc. is in abundance. This is no doubt that its proper use w ill
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Emerging Issues in Rural Development
2 Land is very important among natural resource land a broad concept. Due
to this element of land, the life of a person has become comfortable. Pure
food, water and air are available because of land. The majorit y of the
population of our country till today depends on agriculture
i. e. on land. There no alternative to the land element for shelter, business
and industries. Important characteristics of land.
i) The land element is stable.
ii) The element of land cannot be migrated.
iii) Land element cannot be produced.
iv) Uses of land vary widely.
In nature, land has many functions, water conservation, excavation, filling
process, production, bacterial habitat, absorption and emission of sun’s
heat, support to trees, the fuel, shed , oxygen to sustain human life etc. are
the important functions of land.
However, human interference in the name of technology and discovery in
the field of land is steadily increasing. Instead of protection and
conservation of land disregard is happening in large quantity. Large
encroachments on land have been made in the name of setting up of a
civilization, a mining industry, communication, shelter housing and
industries. Consequently cultivable and cultivated land is also being used
for non-farming.
Unlimited cutting of trees is reducing the abundance of soil layer on the
plain and fields. Agricultural production is adversely affected due to the
depletion of valuable layers of soil. The impact of production capacity will
take decades to recover. Negligen ce to the soil and water conservation is
often responsible for the drought situation in the country.
The top layer of soil on the ground is the strange alchemy. It contains a lot
of minerals and organic elements. The act of storing water and supplying
it to the plants as needed is due to the inherent properties of the soil. The
better the soil fertility, the better plant life. Because of the help of heat,
rain, wind, river -drains, the processes of digging, carrying and filling are
possible. So the hard rock s are converted into soil. Such lands become
rich.
Today the population of our country has reached to 125 crores, but the
area of land is the same as before. 50% area is Westland and private
and owned by or belongs to gram -panchayats, forest department,
education societies, charity societies and entrepreneurs. Application of land
on large scale is not proper land to measure on a very large scale is
unbalanced, so the country suffers a great loss. Growth and management
are the important actions about land. I t is compulsory to take care of the
land. But when the land is divided, the useful decisions are not taken about
it, sometimes destructive decisions are taken. Small farmers imitate the
farmers having much more land and cultivate sugarcane crop often and munotes.in

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Land Pollution
3 often. Some farmers take rice crop in downhill pitfalls. The land itself
decides which crop is to be taken in which part of it. But the man looks at
only science and not the position and size of the land.
Due to the phenomenal progress of science, business is growing rapidly.
The area necessary for factories is growing everyday. Man -made piles of
rubbish like hills are spreading on the earth. The nuclear tests taken
frequently by the developed nations, limitless and terrible ammunition
used in wars are injur ing and defacing the earth. Hence the pollution
grows, becomes wider day by day. The elements of the air come rapidly
with rainfall and help for pollution of land.
Man is bringing about destruction of forest. Therefore the hard outer
covering of the earth is vanished. As a result, the rainfall has done the
landslide on a huge scale and the upper layer which is fertile, has gone
away. The upper layer of soil on the top of hills, goes down to rivers, lakes
and dams and their depth decreases day by day. Rivers are changing the
direction of their bed. The seashore is also becoming shallow. The ships
cannot reach to it. The natural establishments in this area are ruined. The
fishermen are suffering a loss for lack of fishes. The big dams are full of
sediment. So they cannot accumulate sufficient water. Normally, it takes
1000 years to produce 2.5 cm land or soil, but to wear it out only few
years are sufficient.
The rivers in India were bringing silt with their streams and were making
the soil fertile.
Nowadays th ere are elements which cause pollution in the water of rivers.
So the land or soil is not being fertile but polluted.
1.2 WHAT IS POLLUTION ?
1) In the environmental elements like air, water and land, some other
substances are mixed. Therefore changes are made in their physical,
chemical and organic properties or qualities. Due to the changes, there
is no use of these elements. Then become harmful to health. This is
pollution. The substances which cause pollution are called pollutants.
2) The effect on natural or human environment because of mixing with
unwanted substances is called pollution.
3) Due to the undesirable transformation of the physical, biological and
chemical content of air, water and land, health, protection and welfare
of living things get damaged is called pollution.
The above definitions show that it is impossible for a human being to
survive if the air, water and land are not available in pure form. Man
only has created pollution. Slowly, their appearance is becoming
frightening.

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Emerging Issues in Rural Development
4 1.3 THE MAIN TYPES OF POLLUTION
a) Air Pollution
b) Water Pollution
c) Land Pollution
d) Sound Pollution
In this topic we will study only about land pollution.
1.4 WHAT IS LAND POLLUTION?
Land pollution is caused by natural events. Natural changes such as
earthquakes and volcanoes b ring major changes in the soil. Millions of
hectors of land layer flows away with the floods of rivers. On the other
land, due to the constant rainfall and wind, land slide occurs. All these
happen naturally. but human beings are often directly or indirect ly
responsible for such events. Human caused pollution is very frightening.
Land pollution is the hazardous change in ‘life’ caused by chemical,
physical or biological factors in natural environment.
Every year loose particles of the soil are carried away by rainwater and
wind. It is called soil erosion. Water flow, wind, improper agricultural
land farming reducing the amount of food grain in the farm and the land
becomes inferior. It is called soil erosion. In the hot tropical region or
zone, in a particul ar if area deforestation is done. The soil is open and
uncovered. The rainfall in that area is heavy, therefore the erosion of soil
is speedy and on a large scale. In natural conditions the soil erosion in
very less, for example in savana forest it is 0.05 to 1.2 tones per hectors.
But if deforestation is made there the erosion can reach upto 90 tones per
hector. There are many examples for this.
1) In rainy season of 5 months in Jara Island eight million of soil
was carried away in the sea.
2) Due to deforestati on, 6000 million hector soil erosion is made in
India. It means that 30 tonnes per hector per year.
3) This erosion costs 600 crores of US dollers. (World Bank Report
Check your progress
1. What is ‘Mrida Dhoop’?
1.5 CAUSES OF LAND POLLUTION
The reasons can be classified in two parts -
1.5.1 Natural reasons :
1) Proportion and intensity of rainfall munotes.in

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Land Pollution
5 2) Speed of the wind
3) Stratum position
4) Natural and chemical properties of soil
5) Natural disaster
1) Proportion and intensity of rainfall :
Rainfall is the most important caus e of soil erosion. Due to the strike of
drops of water, the particles of soil become loosen and carred away with
the flow of water. Heavy rainfall does not allow the soil to absorb the
water and thus the soil erosion takes place. The quantity of soil erosi on
depends upon intensity, proportion and frequency of rainfall. It is seen that
the rainfall more than 80 mm in a day becomes the reason of soil erosion.
Therefore to avoid soil erosion there should be covering on land.
2) Speed of wind :
Soil erosion also t akes place due to heavy wind. In desert area, because of
cyclone, dust particles are carried away to a long distance. As the cyclone
settles down, the sand layer spreads everywhere.
The top of layer of soil is destroyed and the soil becomes infertile. The
land where there is no enough cover of grass or plants and where the
rainfall is less, the storm -winds in March -April cause the soil particles to
separate from the ground. The particles fly into air. Then the middle layer
of the soil falls open. Thus soil erosion taken place in large quantity.
3) Land stratum :
Slot of land speed up the flow of water and thus increase the speed of soil
erosion. Small gap in slope makes a huge difference in the damage of soil
erosion. As a rule of water flow, if the slope incre ases four times, speed of
water becomes twice. This double speed increases the speed of soil
erosion 4 times greater. Thus carrying volume increases 32 times greater.
4) Natural and chemical properties of soil :
Land texture, organic matter and salt affect th e soil erosion. Sandy soil
absorbs water quickly and thus the soil erosion is less. If the organic
matter is high the particle structure of the soil improves, it increases the
water holding capacity of soil. As the quantity of organic matter in soil
decrea ses, the soil erosion increases.
5) Natural disaster :
Natural disaster can cause lead degradation to the great extent. Due to
various reasons like heavy rainfall, floods, earthquakes etc. the soil
erosion takes place. To a large extent and it leads to great loss of natural
resources.

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Emerging Issues in Rural Development
6 Check your progress :
1. Describe the natural causes of Land Pollution.
1.5.2 Man -Made Reasons
1) Deforestation
2) Use of pesticide with additional chemical fertilizer
3) Additional or excess use of water
4) Irrigation project
5) Improper methods of farming
6) Lack of enclose.
7) Uncontrolled grazing
8) Ownership of land
9) Industrialisation and growing population
10) Rubbish collected daily from rural and urban calories.
1) Deforestation :
Due to the increasing population and industrial development, forest
degradation is happening very rapidly. The natural cover of the soil means
leaves, meadows and root of trees hold the soil tight. While a rainfall, if
first falls on the tree -branches slow down its speed. Thus the soil erosion
is less. As the forests are destroyed, this natural conservation activity
collapses, thus increasing the soil erosion.
It is necessary to have more forest area. Implementation of plans like
forestation, forest conservation, an orchard etc. will succeed if people co-
operate. The public al so should do the worth of forestation in their own
land and around their houses.
2) Extra or additional use of chemicals & pesticides :
To take more crop, use of chemicals is made out of proportion. Poisonous
insecticides have access in our lands. Therefore f ertile land also becomes
unproductive.
Fot this, organic fertilizers, compost fertilizers etc. natural food should be
given to the soil, as the composition of the soil will be natural.
3) Use of additional water :
Some farmers have an assumption that if more w ater is given more crop
they will reap. But if is done continuously, in same land, the drainage of
the water is impossible and the law becomes salty and unproductive
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Land Pollution
7 also. So it is advisable to give the land sufficient water, not more than
necessary. So w ater is saved. Spray sprinking, dribble sprinking can also
solve this problem.
4) Irrigation project :
Now a days big dams are constructed for availability of water. Many
hectores of land is wasted under the dams. This is a degeneration of land.
5) Improper meth ods of farming :
Traditional method of farming leads to land slide, especially at downhill
farming.
6) Lack of resistance system :
If there is a resistance system on sloping land, the loss of land or soil can
be minimised. Because of resistance to flowing wat er, the speed of
flowing water is lowered, and water can be detained near that resistance.
If the resistance is absent, the soil erosion takes place at large extence. So
there is need of strong resistance system to detain water.
7) Uncontrolled grazing ground :
Land slide of grazing grounds and meadows also happens. The cattle
loosen the particles of the soil. These particles, due to wind or rainfall go
away. The remedy and this is to feed the cattle at houses, or to take grass
crop in uncultivated land.
8) Owner ship of land :
The system of separate family in rural area is accelerating or growing due
to development. Rural public is going to settle in town or cities. They have
right to own their land in rural area also. Therefore the land is divided in
small pieces . The public settled in cities, like to have service in towns or
cities. As a result, the lands in villages are sold. Various concessions are
given to boost industrial development in rural areas. Due to this, land
prices started to improve. As a result, te ndency of selling land and living
on interest is increasing.
9) Industrialisation and increasing population :
Industrialisation is expanding to meet the needs of growing population.
Deforestation is done for getting wood and raw material needed for
industrial isation which causes the soil erosion, On the other hand, the
waste generated by the industrialisation, process is mixed waste and toxins
which causes the soil infertile.
10) Daily garbage collected from rural and urban areas :
Every village has a huge variety of garbage collection. The impact of
person’s living is on waste generation. Every day’s waste needs to be
disposed off. Various kinds of waste such as pieces of papers, clothes,
glass, plastic etc. should be disposed off. Disposal of plastic is a serious munotes.in

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Emerging Issues in Rural Development
8 problem. Pollution of land is increasing due to the waste stored in various
places.
11) Sewage sludge :
House to house sewage is regularly produced. It contains many things
such as detergent soap, bath soap, water etc. In rural areas there are not
proper drainage systems. Water flows down the road without directions in
deep areas and accumulates there. This causes soil pollution. Waste
elements from factories are mixed with sewage and come the unfavorable
change in the chemical elements of the soil. As a resul t a fertile farmland
is suffered from sewage sickness.
1.6 INCREASE IN DIRTY WASTE FROM HOMES ETC.
AND INCREASING POPULATION
To serve the needs of increasing population, the speed of
industrialisation is also increasing. For that deforestation for wood is
necessary. As a result, land slide takes place. On the other side, the
process of industrialisation creates poisonous material, waste things and
rubbish, dirt etc. and they are mixed in the land and the land becomes
infertile. Mainly, the following are the industries which create poisonous
material –

a) Waste at a pharmaceutical factory
b) Waste released from the mines
c) Coal refining centres
d) Thermal power generation centres
e) Poisonous gases in the factories
f) Pollution caused by micro organisms
g) Radioactive waste
1.7 SUMMARY
In this topic we have studied the concepts of pollution and land pollution.
With the ever growing population, the physical needs of human beings also
increased. The forests had to be cut down early for agriculture, with
urbanization, land is bein g used for house construction and construction of
factories. Farmland is being used to meet the needs of mining, dams,
canals. Land is constantly being excavated for mining and oil well.
Pesticides and chemical fertilizers are being used indiscriminately in the
name of mechanical farming.
Though land pollution is existing because of natural causes, man - made
causes are equally responsible.
Household waste and public waste, industrial waste, waste of chemicals,
agricultural waste are mixed with soil. Thus qu ality of soil is constantly
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Land Pollution
9 The land is our precious asset. Due to many activities of nature and human
beings the land is getting depleted. There is a need for government level
efforts to preserve such precious resource and every citizen’s e ffort is not
only necessary but also compulsory.
Land is the foundation of our lives. Without it we would not be able to
stand still. Therefore, stopping the loss of land means stopping our loss.
1.8 SELF STUDY
1) What is land pollution
2) Write the natural causes of land pollution
3) Describe the man made causes of land pollution
1.9 REFERENCE BOOKS
1) V. A. Deshmukh – Mrud Vidnyan Maharashtra Granth Nirmiti
Mandal, Nagpur
2) Pandurang Bhosale – Vikasache Arthshatra ani Krushi, Publisher –
Chetak Books, Pune, 2001
3) Ashok Jain Foundation Course, paper 2, Seth Publication, Mumbai.
4) Varat Padvankar – Krushi Bhu Vidnyan – Gaj Publication,
Ahmadnagar
5) K. Sagar – Krushi vishayak Ghatak –K. Sagar Publication, Pune, 2003
6) T. P. Patil – Maharashtracha Bhugol, Pimpalapure & Publishers,
Nagpur.
7) Maharashtra Rajya Sahitya Sanskruti Mandal – Pramukh Sampadak –
Tarktirth – Laxmanshatri Joshi, Marathi Vishwakosh, Khand 6.
8) Dattajirao Salunkhe – Krushi Vistar Seva Mahatma Phule Krushi
Vidyapeeth, Rahuri
9) Jaydip Nikam (editor) – Paryavaran Abhya sak (Evs 2001),
Yashwantrao Chavan Mukt Vidyapeeth
10) Arvind Patvardhan – Pani Adva Pani Jirva – Arogya Dakshata
Mandal, Pune
11) Suresh Phule – Krushi Bhugol, Vidyabharati Publication, Latur. +

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10 2
CONSEQUENCES OF LAND POLLUTION
Unit Structure :
2.0 Objectives
2.1 Preface
2.2 Various effects of Land Pollution
2.3 Change in temperature and rainfall
2.4 Increase of sediment in the Dam, ponds and lakes
2.5 Increase in the amount of Drought
2.6 Land Slide
2.7 Desertification
2.8 Problems with water quality control
2.9 Summary
2.10 Self Study
2.11 Reference Books
2.0 OBJECTIVES
After reading this chapter, you will understand the following -
1) To study the importance of Land Position.
2) To study the impact of land pollution on human life.
3) To study the effects of land pollution on the farm land.
2.1 PREFACE
In previous cases, we have studied the natural and human factors
responsible for soil position. In the presented cases, we will study how the
consequences human errors have to do with animals and human beings.
Soil erosion is a serious problem in agriculture. Due to the accumulation
of waste on the ground, it becomes polluted due to pollution and the
difference in quality. The root function of the soil is te rminated. The water
level in such soil decreases. It can also affect the tree growth in the soil.
Pure water sources are decreasing. The root cause of the process of
desertification is soil degradation.
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Consequences o f Land
Pollution
11 The effects of Land Degradation are also possible in addition to farm
lands. Frequent flooding of rivers can also threaten human health with the
consequences of charges in temperature, failure of dams etc.
Every year 600 million tones of soil and 50 lakh tonnes of nitrogen and
phosphorous are carried away o f water and wind in our country, and in the
case of Maharashtra 50.5 million tonnes of soil and 4.5 tonnes of nutrients
are carried away due to water and wind. By the reduction of land 10 to
15% of the rainfall is available for crops. 60 % of water is wast ed due to
evaporation. The remaining water flows into soil or from the ground. As a
result, the question of agriculture and drinking water is also getting
serious. Its visible nature is the persistent drought. Water pollution and
drought are now habitual. The process of desertification slows down the
amount of farm land.
2.2 VARIOUS EFFECTS OF LAND POLLUTION
Various effects of heat, wind, rain and human interference causing soil
erosion has impact on different elements of nature and human beings. The
result s presented are discussed in the next section.
THE LAND BECOMES UNUSABLE FOR CULTIVATION
The sunlight, wind, rain and other factors destroy the upper layer of
land. In the top layer of the soil, the crop get the necessary nutrients. For
example -
a) Primary Nutrients - Nitrogen, phosphorus, pottasium
b) Secondary Nutrients - Calcium, magnesium, sulphur
c) Micro Nutrients - Iron, zinc, copper, mangnese, boron, chlorin etc.
All of the above nutrients are available as per the capacity of soil. If the
crop does not have the necessary ingredients for growth, then the obstacles
come in the way of its growth.
According to geographical climate and heavy rainfall difference occurs in
the capacity of soil. Different types of soil are necessary for different
crops. The fertilit y of the farmland is of special importance. Fertility
decreases dramatically because of soil erosion. Due to scarcity of
nutrients, such lands are found useless for crop cultivation. Due to
continuous soil erosion, the farming becomes impossible. Obviously there
is increase in proportion and infertile soil.
THE GROUND WATER LEVEL DECREASES
If the soil is covered by grass, forest etc., the process of absorption of rain
water becomes quicker. The ability to hold water in soil is
decreasing day by day due to t he frequent soil erosion. Most of the water
goes to the sea. As the water level in the ground goes down, it has the
adverse effect on agricultural production. The drinking water problems
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Emerging Issues in Rural Development
12 Check your progress
1. What are the nutrients required for crops ?
INCREASE IN RIVER -DRAIN FLOOD
The river flow is accelerated due to the large amount of de- forestation in
the areas through which river drains. Fear of flowing out of river water
flow increases. As a result, there is a huge loss of human and natural
resources. In a country like India, every year, problems arise due to floods.
Because of this, country has to deal with survival and financial loss.
INCREASE IN AMOUNT OF SALT IN THE SOIL
Because of land slide, all the land does not exist on t he same level. In this
area water gathers and in the course of times the land becomes salty.
The use of extra chemical fertilizers and pesticides increase the
productions at the beginning but with time the productions become
limited. ‘More expenditure and less income’ is the condition of the
farmers. In this circumstances farming is impossible for farmers.
Salty lands do not remain proper lands for cultivation. Hence the natural
resources decline.
2.3 CHANGE IN TEMPERATURE AND RAINFALL
Various natural cycle s are working and active in the nature. The use of
these cycles is in keeping balance in various elements of nature. For
example, oxygen cycle, carbon cycle, nitrogen cycle, water cycles are
always active because of plant kingdom, as a result fertile land. Decay of
plants, trees etc. causes the level of water which goes down. Because of
this vicious circle increases the temperature and the irregularity of rainfall.
2.4 INCREASE OF SEDIMENT IN DAMS AND PONDS,
LAKES
The water from the hill -tops comes down to foot of hills. With the waters
soil in a huge proportion comes down and gathers at the bottom of lakes
and ponds. If the sediment in the lakes is not drawn out in time, the
capacity of a lake to store the water becomes less and less. Though we
expend extra vagantly on it, it is not profitable.
The flowing water of rivers is obstructed by a dam. The use of this water
is done for farming, factories and for drinking. During construction of a
dam, deforestation occurs on a large scale. Existence of wild life is in
danger. Serious problems like rehabilitation are deviated. In this way the
direction of human development is wrong. Increase in sediment is
continuous so the dams become useless.

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Consequences o f Land
Pollution
13 2.5 INCREASE IN THE AMOUNT OF DROUGHT
Drought is a natural calamity. It has a close relation with rainfall. ‘How is
the rainfall’ is more important than ‘how much is the rainfall’. The
defects in the climate and water cycle are the reasons of drought. Absence
of forest and deforestation are the two main things responsible for
drought. The diminishing fertility of land affects on forest and water. In
short, decay of the land creates drought.
2.6 LAND SLIDE
Land slide means land depreciation or land slip or falling of the land.
Along with natural causes, human causes also bring land slide. continuous
deforestation causes soil particles loosen cavities are created in the soil
which cause land slide. Excavation for road construction and railways
as well as the opening of cattle cause land slide.
Check your progress :
1) Why does the drought increase ?
2) What is Land Slide ?
2.7 DESERTIFICATION
For some reason land becomes plant less, in productive then it is called
‘desertification’. The productivity of such land is low. Human causes are
largely responsible for desertification. Maharasht ra, Gujarat, Andhra
Pradesh, Rajasthan, Karnataka and some area in North have threat of
desertification. Deforestation and excessive use of groundwater are
responsible for desertification. Both the factors lead to desertification
when the soil is depleted.
2.8 PROBLEMS WITH WATER QUALITY CONTROL
The use of additional chemical fertilizers and pesticides in farmland and
factories, pollutants discharged from the factories are responsible for land
pollution. Such pollutants flow into the flowing water with rain water.
Land depletion reduces water holding capacity. The soil also flows with
flowing water. Because of this reason the problem of quality control is
created by polluting the water.
Different effects of soil erosion are possible as mentioned above. Apart
from this, decay of the plants, problems of the agricultural careers,
changes in the natural composition of the surface of earth etc. many of the
effects are related to natural environment.
2.9 SUMMARY
Soil erosion is one of the greatest threat to environ mental protection. Even
though the land is flowing within a few hours, it takes years to form. 70%
of dry land is in India and out of which 42% is used in the production of munotes.in

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Emerging Issues in Rural Development
14 food. This land is insufficient to provide food for the growing population.
This requires serious consideration of the consequences of land position
while using land.
Deforestation causes soil erosion and the land becomes infertile. About 6
thousand million tonnes of soil is being eroded and destroyed in India.
Soil erosion reduces soil moisture. This results in ground water level
going down. The rainwater flows in a large scale without absorbing in
soil. Today the ground overall due to the effect of soil erosion the human
life is becoming difficult.
2.10 SELF STUDY
1) Discuss the various consequences of soil pollution.
2) Explain the co-relation between forest, water and land.
3) What is land sliding and desertification.
2.11 REFERENCE BOOKS
1) Varat Padvankar – Krushi Vidnyan – Gaj Publication, Ahmadnagar.
2) Dattajirao Salunkhe – Krushi Vistar Seva – Mahatma Phule
Krushi Vidyapeeth, Rahuri.
3) V.A. Deshmukh – Mrud Vidnyan - Maharashtra Vidyapeeth Granth
Nirmiti Mandal, Nagpur – 1
4) Krushi Dainandini – 2016 – Dr. Balasaheb Sawant Konkan
Krushi Vidyapeeth, Dapoli, Dist. Ratnagiri – 415712
5) Hemraj Shaha – Jal Saksharata, Riya Publications, Kolhapur, 2017
6) Pandurang Bhosale – Vikasache Arthshatra ani Krushi, Publisher
– Chetak Books, Pune, 2001
7) Jilha pani & Swachchhata Mission Kaksha, Z. P. Sindhudurg,
Rashrtriya Gramin Peyjal Karyakram, Swachchha Bhatat Miss ion
Mahiti Pustika, 2010
8) Maharashtra Rajya Sahitya Mandal, Head Editor – Tarktirth –
Laxmanshatri Joshi, Marathi Vishwakosh, Khand 6
9) Sampadan – Sankalan – Shripad Deshmukh, Jal Pradushan,
Akshay Publication, Shaniwar Peth, Pune, 2007

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15 3
LAND POLLUTION - PREVENTIVE
MEASURES
Unit Structure :
3.0 Objectives
3.1 Preface
3.2 Land pollution and preventive measures
3.2.1 Managerial Practices
3.2.2 Strip sowing method
3.2.3 Overlay method (cover method)
3.2.4 Planning of rotation method
3.2.5 Level cultivation
3.2.6 Grass cultivation
3.2.7 Tree planting and conservation
3.2.8 Use of organic fertilizers
3.2.9 Banned for live stock cattle
3.2.10 Proper irrigation
3.2.11 Proper cultivation
3.3 Mechanical Methods (Engineering method)

3.3.1 Placing a resistance structure in the plane

3.3.2 Gutter or drain resistance structure
3.3.3 Drain simplification
3.3.4 Water logged land improvement
3.3.5 Flood control
3.3.6 Gabion Bandhara
3.3.7 Plat Form Bench Terrace
3.3.8 Flood Control
3.3.9 Step By Step Farming
3.3.10 Spreading and Mixing Pits
3.4 Summary
3.5 Self study
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Emerging Issues in Rural Development
16 3.0 OBJECTIVES
After reading this chapter, you will understand the following things.
1) To study the measures of controlling land polllution.
2) To study the managerial methods of land protection.
3) To study the mechanical methods of land protection.
3.1 PREFACE
About 600 million tons of soil is washed away annually from Indian
agriculture. With this soil 5 million tons of nitrogen, phosphorous,
potassium are being destroyed. We have already studied in previous
chapters how the land pollution causes, because of rainfall, wind etc. We
have also studied the serious effects of land pollution.
Land, air, water, sunlight, mineral resources are the things on whic h the
existence of human beings and all other living beings are dependent. It is
human responsibility to protect and conserve the natural resources,
Environmental problem are created only by human beings through the
indiscriminate use of recourses of natur e. We should be aware of this.
Protection is the preservation of nature, controlling its destruction.
Conservation is also necessary. Conservation requires growth and
enhancement along with protection.
The concept of conservation includes following points -
 Preservation of natural resources.
 Stopping the loss of natural resources.
 To try to compensate for the reduction in the use of natural resources.
 To follow the principle of nature.
 Controlling distruction of natural resource wealth.
 Planning to increase natural resource wealth.
 To make delibarate efforts to increase the reforestation wealth.
 Promotion and dissemination of conservation of natural resources.
In order for humans to live well, the relationship between human beings
and nature must be uninterr upted. For this protection and conservation of
nature is compulsory.
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17

Check your progress
1) What is conservation of natural wealth ?
2) Which points are taken into consideration for conservation of
natural wealth ?
Land is important functional un it of the agricultural business. The
productivity of the soil depends on the proprietary and biological change.
The study of the land is done from two perspectives.
a) Technical perspectives - In this view, land ownership rights,
land reform laws etc. are considered for administrative schemes.
b) Biological perspectives - In this view, soil conservation, bacteria are
considered from a scientific point of view.
3.2 LAND POLLUTION AND PREVENTIVE MEASURES
3.2.1 MANAGERIAL PRACTICES :
The greatest threat to environme ntal protection is the soil erosion. Even
though the land is washed away in a few moments, it takes many years to
prepare. 70% of the dry land in India is used by 42% for direct food
production. Land is insufficient to provide food for growing population.
To bring more land under cultivation to develop the uncultivated
land, to adopt such soil conservation schemes is compulsory for rural and
agricultural development.
In the study of preventive measures in land pollution, individual level
efforts, people’s p articipation, geographical & regional characteristic
approach of government etc. factor should be taken into consideration.
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Emerging Issues in Rural Development
18 Preventive measures for soil erosion are mainly followed by two methods.
a) Managerial method and b) Mechanical method
a) Managerial methods - The following are some of the methods that can
be used to prevent soil erosion.
3.2.2 STRIPED SOWING METHOD :
Cereals such as sorghum, millet, cotton etc. do not prevail soil erosion.
But if the mung, beans, groundnuts etc. are sown in striped, they spread on
the ground. They do not allow the soil erosion because of their covering. If
the slope of soil is high, then it is sown horizontally with different crop
strips. In a field, if we take on strip of legume in three to five strips of
cereals, th ese crops can be beneficial to soil. Each year if these strips are
further enhanced then nutrient content and productivity of soil increases.
3.2.3 OVERLAY METHOD (COVER METHOD) :
The covering of leaves, dried grass etc. on the surface of land is called
covering of land. Because of this covering protection, the rain drops do not
strike the surface of the land directly. Thus the process of washing away
the soil with flowing water is controlled. This improves the texture of
soil.
3.2.4 PLANNING OF ROTATION METHOD :
If one crop is taken consistently every year, then specific elements in the
soil are likely to disappear. It is necessary to plan for altering crops.
Rotation of crops helps to maintain the soil fertility.
3.2.5 LEVEL CULTIVATION :
The ploughing and harrowing etc. are done horizontally to the slope of
land. Then the soil erosion is controlled. It helps to store rainwater in the
land. The use of dung manure in this method improves the soil texture and
water retention.
3.2.6 GRASS CULTIVATION :
The grass cultivation on the downhill lands can reduce the washing away
of the soil with flowing water. The grass roots hold the soil tightly. So the
grass reduces soil erosion.
3.2.7 TREE PLANTING AND CONSERVATION :
The greater the number of trees, the greater t he ability to hold soil. The
trees create obstacles for water. The leaves and peat create organic
manure. Thus tree plantation and conservation is the need of time.
3.2.8 USE OF ORGANIC FERTILIZERS :
In this method use of organic fertilizers is expected. L ess use or no use
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Land Pollution –
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19 avoid the unnecessary use of insecticides and pesticides. To maintain a
fertile layer of soil, organic fertilizers are used.
3.2.9 BANNED FOR LIVE STOCK CATTLE :
The catt le should be banned in meadows. There is a lot of loss of soil and
grass because of unrestricted cattle. It also destroy covering on hand.
3.2.10 PROPER IRRIGATION :
Excessive irrigation can make the farm land saline. Proper irrigation
should be done to prevent soil erosion. The ill-effects of additional
irrigation are beginning to be realized. In Sanglli, Solapur districts salty
lands are found to be useless for crops.
3.2.11 PROPER CULTIVATION :
Ploughing should be done in a proper way. The resistance sho uld be made
for flowing water to control soil erosion. Soil retention occurs due to the
adoption of improved farming practices.
Check your progress
1) Write the preventive measures of soil erosion.
2) Write a note on strip sowing method.
3.3 MECHANICAL METHOD (ENGINEERING
METHOD) :
The following mechanical methods can be used to control soil
erosion.
3.3.1 PLACING A RESISTENCE STRUCTURE IN A PLANE :
Such kind of resistance structures are built in low rain fall areas, lightly
textured and shallow land. The soil th at flows with water sticks to the such
resistance structure. So the water is absorbed in the land.
On about 1 to 5 % of the slope land, such structures are built. considering
the size of slope, the distance between the structures is fixed. It ranges
from 3 5 to 100 meters and the height of these structures is 75 to 90
centimeters.
Because of such resistance structures the speed of flowing water is
lowered and soil erosion is controlled.
3.3.2 DRAIN RESISTANCE STRUCTURE SYSTEM :
In rainy season the drains are flowing. But after rainy season they get dry.
Therefore, in such cases, drainage system can be constructed by making
small reservoirs for irrigation purpose. Controlling the flow of drain, water
stored is used for crops. Drain resistance structure system controls the soil
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Emerging Issues in Rural Development
20 3.3.3 DRAIN SYMPLIFICATION :
Occasionally, the soil that flows with water is likely to change the course
of the drain due to silt in the drain or rocks in the drainage vessel.
Therefore, there is a possibility of rushing water in surroundings area to
make damage of it. In order to prevent such damage, drainage curves can
be prevented. Proper shaping and sloping prevents soil erosion.
3.3.4 WATER LOGGED LAND IMPROVEMENT :
In areas where water is constantly stored, there is not enough drainage.
Such lands are water logged and cannot grow crops. In such land area, by
removing the excess water the land can be made more productive and soil
erosion can be prevented.
3.3.5 CONTROLLING CHASM (NARROW VALLEY) :
In order to protect the prod uctive land from water flowing through the
chasm or glen, by constructing some obstruction the water can be
controlled and land erosion is stopped.
3.3.6 GABION BANDHARA :
When water through drainage speedily flows, no obstacle remains where it
was. Theref ore, an iron network is to be errected to put an obstacle in the
way of water. Inside the obstacle there will stores and sediment. The flow
of water will be slow and the soil erosion will be reduced.
3.3.7 PLAT FORM BENCH TERRACE :
Platform is made for land erosion. Platforms are made by machines.
Platforms are on equal height and level. Platforms hold soil and water. So
proper amount of water is absorbed is the soil. Soil erosion is reduced
by 90%. This is an effective water conservation solution.
3.3.8 FLOOD CONTROL :
Floods of the rivers wash away the large amount of soil from surrounding
area. Dams are constructed to lower the intensity of flood, and there by
controlling the soil erosion.
3.3.9 STEP BY STEP FARMING :
In mountain areas step by step farmin g is carried out by farmers. Some
measures are taken for lowering the speed of flowing water, to reduce the
soil erosion.
3.3.10 SPREADING SAND MIXING PITS :
In the areas where there is a very little rain fall, the sand mixing pits is
spread in the field. It absorbs rain water into the soil. Moisture is
maintained and soil erosion is stropped. This method is called ‘Pebble
Mutch’. This method is important in wasteland.
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21 3.4 SUMMARY
All the businesses of human beings are directly or indirectly related to
land. Land is one of the most important natural resources. Large amount of
soil erosion decreases the productivity of land. Different reasons are
responsible for soil erosion. Now a days this problem has taken a serious
form. In future it will be more serious. Thus it is very needful to stop soil
erosion. otherwise farming will be affected in bad way. So the soil
conservation is the need of time.
Soil erosion is caused by natural and man-made activities. Normal terrain
slope, rain, climate, deforestation, improper methods of cultivation,
extreme grazing, excessive irrigation etc. are the important reasons for soil
erosion.
Preventing soil erosion is very important. Building resistance to flowing
water, creating a covering on land, ban on cattle in meadows, cultivating
crops that hold the soil, flood control, stopping the cutting of trees etc. are
the necessary methods of avoid soil erosion. Conservation of soil is
needful for each and everyone.
3.5 SELF STUDY
1) Describe managerial method to prevent soil erosion
2) What mechanical methods can be used to prevent soil erosion.
3.6 REFERENCE BOOKS
1) Maharashtra Rajya Sahitya Sanskruti Mandal, Head Editor – Tarktirth
– Laxmanshatri Joshi, Marathi Vi shwakosh, Khand 6.
2) Maharashtra Rajya Sahitya Sanskruti Mandal, Head Editor – Tarktirth
– Laxmanshatri Joshi, Marathi Vishwakosh, Khand 13.
3) Pandurang Bhosale – Vikasache Arthshatra and Krushi, Publisher –
Chetak Books, Pune, 2001
4) K. Sagar – Krushivishayak Ghatak, Publisher – K. Sagar
Publication, Pune, 2003
5) Dr. Balasaheb Sawant Konkan Krushi Vidyapeeth diary, 2016 -17
6) Dur & Mukt Adhyayan Sanstha, Mumbai Vidyapeeth Gramin Vikas
Abhyas Patrika, 4 Octo. 2012.
7) V. A. Deshmukh – Mrud Vidnyan – Maharashtra Vidyapeet h Granth
Nirmiti Mandal, Nagpur – 1
8) Dr. Jaydeep Nikam (Editor), Yashwantrao Chavan Maharashtra Mukt
Vidyapeeth, Paryavan & Abhyas, June 2015

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22 4
THE PRESSURE OF POPULATION ON
AGRICULTURAL LAND
Unit Structure :
4.0 Purpose
4.1 Preface
4.2 The Concept o f the Unemployed
4.3 Types of Unemployment
4.4 Reasons for Unemployment among Educators
4.5 Reasons for Unemployment
4.6 Measures to Reduce Unemployment
4.7 Summary
4.8 Questions
4.9 Book Reference
4.0 PURPOSE
After reading this chapter, you will understand the following.
1) Unemployment can be understood.
2) A detailed explanation can be made about what is unemployment.
3) The type of unemployment can be discussed.
4) The current status of the unemployed in India can be monitored.
5) Detailed information on the causes of unemployment in India can be
obtained.
6) We will study the problem of unemployment.
7) We will study the various measures taken to solve the problems of the
unemployed.
4.1 PREFACE
Unemployment is a very serious economic, social problem facing our
country. In rural areas as well as in urban areas, the problem of
unemployment is faced. Unemployment is a waste of human resources in
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The Pressure of Population
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23 that is really true. Usually the unemployed are involved in anti -social and
seditious acts of gambling, crime, harassment, land invasion etc.
Unemployment reduces the national income of the country and the society
remains poor and backward. Unemployment threatens the security of the
economy.
The three major issues facing any country's economy are poverty, the
second is economic inequality and the third is unemployment.
Unemployment is high in the cou ntry, whether it is developing or at least
to some extent. The United States, Japan, England have achieved a great
deal of development, but they cannot be eliminated completely. These
developed countries still have to admit 4 to 6 percent unemployment.
Sanatan sectarian economists admit to some degree of unemployment. J. B.
Sen. according to his market rules, economists of other egalitarian ideas
conclude that full employment is a normal condition. So, unemployment is
only temporary. It is temporary. As the economy changes, it automatically
shifts away. So modern economists like Keynes believe that in the event
of a recession or depression, unemployment is due to the economy's
overall demand or lack of overall spending. Thus unemployment can be
reduced by increasing the total cost.
4.2 CONCEPTS AND FEATURES OF THE
UNEMPLOYMENT
Unemployment is a situation where a person is willing to work at
prevailing wage rates, but does not get a job. In the broadest sense,
unemployment is the absence of work or the ability to work, even though
people between the ages of 15 and 59 do not get paid work. 60.3% of
India's population falls into the working age group.
"A person's willingness to work, qualification and willingness to work at
prevailing wages, even though the perso n is not able to get real work, is
'unemployment'."
There are three basic principles of determining unemployment '
 The person must have the ability to work.
 The person must have the desire to work,
 The desire to put forth effort to find work in person
If a person does not get employment by fulfilling these three conditions,
he or she can be considered unemployed.
Definition of unemployment
In the ordinary sense, we use the word unemployment in a different
sense. But in economics, the word unemployment has a special meaning.
The definition of unemployment is as follows by many experts.
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24 4.2.1 Professor Pigu: -
A person who is willing to work at prevailing rates, but that person doesn't
get the job. At that time, the person is considered unemployed.
International Labour Organization:
Those who do not find work, despite the desire and ability to work, looking
for work at the prevailing wage. All of them are included in the concept of
unemployment.
Sergeant Florence: -
Unemployment is the vacancy of a pers on who is qualified and willing to
work.
General definition of unemployment:
Eligibility to work at prevailing wage rate and willingness to work even if
the person has not had the opportunity to work. That person is called
unemployed
G.R. Madan: -
If the re is a country where capable people want to work at the right age but
cannot get work within the current pay scale, then unemployment exists in
such country.
Dr. Saxena: -
Unemployment is a problem for a person who is qualified to work and is
willing to work.
Fair Child: -
A member of the general wage class is reluctantly excluded from working
in regular hours, on ordinary pay and under normal working conditions,
called unemployment,
D. Melo: -
Unemployment is a situation in which a person does not have paid
business status even when he or she wants to work.
Karl Pibram: -
Unemployment is a condition in the labour market in which the labour
force is more than a means to fulfill the labour force.
As explained above, monks, saints, bairagi, beggars cannot be included in
the unemployed. Because these people have the ability to work, but have
no desire to work. Also old and sick person, disabled person can not be
called useless. This is because they want to work but do not have the
ability. Also, the prevail ing wage rate is 40 rupees, and the worker who
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The Pressure of Population
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25 much wages cannot be called useless. Because the worker is not ready to
work at the prevailing wage rate.
Characteristics of Unemploym ent: -
1) The unemployment rate is not the same in all the states of India.
Almost half of the total unemployed persons in the country are from
West Bengal, Bihar, Uttar Pradesh, Tamil Nadu.
2) Unemployment is found in both urban and rural areas of India.
But unemployment is higher in rural areas than in urban areas.
3) Agricultural unemployment in India is higher than unemployment
in industrial or other sectors.
3) Unemployment is higher among women than men.
4) A large number of unemployed are found in India.
Meaning of unemployment: -
A) Involuntary unemployment: -
This condition is called involuntary unemployment when a person wants
to get employment at prevailing wage rate but does not get employment.
This unemployment is not voluntarily accepted by the person, but
impo sed on him. This unemployment is called involuntary unemployment.
This is an important issue ahead of the unemployed country.
B) Voluntary unemployment: -
A person who prefers to live without employment for whatever reason
(having a lot of wealth) is called voluntary unemployed.
In the society, some individuals do not need to do any work or business in
order to make a living. Their father holds the property for them. The
proceeds from that property go to their livelihood. Such people are left
unemployed by the ir own will. Also, some individuals find it difficult to
work at prevailing wage rates. So the person does not accept the work.
The unemployment of such individuals is called voluntary unemployment.
C) Hidden unemployment: -
Hidden unemployment is known as invisible unemployment or suppressed
unemployment. Invisible unemployment was first introduced in 1936 by
Mrs. John Robinson. For John Robinson, a persistent downturn in a labour -
intensive industry that has forced workers to work elsewhere for lower
incomes, finds unemployed.
Unemployed people seem to have jobs, but they are actually unemployed.
In the technical language, the workers who do not add to the total
production and if they do not work, the production does not decrease but
if they do not increase, t hen it is useless. Workers whose marginal
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Emerging Issues in Rural Development
26 For example, five workers are sufficient to work on a ten acre tract, but
there are eight workers employed and that yields 100 quintals of grain per
year. The reality is that a ten-acre farm can provide full-time employment
to just five workers. This means that even if three out of the eight persons
working on the farm are removed from work, the production will remain
100 quintals (as before). That is, even though those three
extras seem to have jobs, in fact: there is no return on total production due
to them, so these extra three persons are useless. But because she does not
look unemployed, she is called a hidden or unemployed. In India
agricultur e, traditional rural industries, domestic industries, fishing
business, etc. are seen as unemployed.
4.3 TYPES OF UNEMPLOYMENT
The main types of unemployment can be summarized as follows
4.3.1 Seasonal unemployment: -
Seasonal unemployment is a form of inadequa te employment. Seasonal
unemployment is when people get work during a particular season but
have to remain idle for some time after the season ends. Seasonal
unemployment is particularly prevalent in the villages. When the season
starts, employment and unemployment are the end of the season.
Some businesses are seasonal. It can only be available for a few months of
the year. But after the season is over, people working in that business
become useless. Until next season they will likely have to be inactive.
Such unemployment is called seasonal unemployment. Examples of
seasonal unemployment are unemployment generated in agriculture,
fishing, brick kiln businesses.
Agriculture is one of the major business in rural India and it is the only
business in many peop le. The number of small scale industries or cottage
industries in this area is minimal. Agriculture in India is mainly dependent
on the monsoon seasonal rainfall. About 70% of the total area under
cultivation is dependent on rainfall. The harvest season la sts from sowing
to harvest. Rural areas have almost full employment during this
agricultural season. But agricultural work is seasonal. Once the harvest
season is over, the agricultural work stops or there is no special
agricultural work. The seasonal unem ployment period can be as long as
five to seven months a year. In this period, people in rural areas are largely
unemployed.
Also, there may be a number of businesses in the city that are operating
only months before the year. Businesses such as fishing, i ce making,
housing, tourism, ice cream, refrigerators, sugar industries, etc. are
seasonal. When the season is over, numerous workers working in this
business become useless.
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The Pressure of Population
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27 4.3.2 Technical unemployment: -
Technological unemployment is the result of unemployment resulting
from changes in production techniques. Due to technological advances in
the country, new and automatic machines are installed. Mechanical
equipment is used instead of labour. At that time workers are replaced by
machines, which create unemployment. For example in India
when machinery was first used. At that time many handloom weavers had
to leave their jobs. Because they could not withstand the competition
created by the new machine. Also, we see a number of workers in many
businesses becoming unemployed due to the use of computers.
Creative unemployment: -
Unemployment that results from changes in the structure of the economy
is called creative unemployment. e.g. When demand for a commodity
falls, the factories that produce the goods are shut down and the workers
in these factories become useless. Old and traditional industries are closed
and new industries are created. Then creative unemployment appears.
Demand for goods and textiles produced in the handicrafts and cottage
industries of India declined drastically due to the indiscrimination of the
Indians by the British standard of living. In England, however, the demand
for manufactured goods increased significantly. As a result, the
destruction of countless small scale industries and cottages in India that
are world -renowned has rendered millions of people useless. This
unemployment can be called constructive unemployment. To give a
simple example, it can be said that unemployment which was created by
the occupation of the hangar when the passenger started transporting by
space can be termed as constructive unemployment. Rural families turning
ropes are useless due to nylon thread. Due to the onset of the railway
traffic, there was a huge unemployment strike on the transport trucks,
tempo, tractors, etc. This unemployment can be called constructive
unemployment. Constructive unemployment is long term unemployment.
Unemployment, which is sometimes caused by some structural flaws in
the economy, is called constructive unemployment. e.g. For example,
changes in consumer interest, capital scarcity, backwardness of the
agricultural sector, low rate of economic development etc. lead to
constructive unemployment.
Frictional / Confrontational Unemployment: -
The unemployment caused by the confl ict in the economy is called
frictional or conflicting unemployment. Frictional unemployment is called
unemployment that arises if the demand for labour and supply is not
balanced. Frictional unemployment is seasonal (emergency) The
temporary breakdown of frictional unemployment raw material. Factories
are closed due to short -term restrictions on electricity use, short -term
termination among workers, and the majority of workers are useless for
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Emerging Issues in Rural Development
28 Business Cycle Unemployment: -
In a developed capitalist country, there are often regular fluctuations in
industrial behaviour and economic upheaval, or changes in pace and
slowdown. In developing countries like India, there are similar
fluctuations. Due to fluctuations in the industrial sector, there are
fluctuations in trade, commerce and economy. Because all these areas are
interdependent. Such fluctuations have a lot of regularity. That is why
such changes are called cyclical acceleration and slowdown.
The lack of effective 'demand' creates a cycle of trade unemployment.
Demand for commodity services decreases as the recession hits. As a
result, profits fall, investment slows down, businesses fall off. Finally,
millions of workers have to leave their jobs. Trade unemployment is
either emergency or temporary. When the recession hits a boom,
investment increases again, new industries are created and the jobless.
Low unemployment or semi -unemployment: -
Absolute unemployment means not having to work one day a year.
On the contrary, semi -unemployment is not getting enough work.
According to Professor Rajkrishna, in the Indian situation, men who work
less than 42 hours a week are included in semi -unemployment.
When a person cannot add to the product as much as his / her production
capacity, then that perso n is included in semi -unemployment.
E.g. The efficiency of the professors working in the junior college is 26
hours a week. But if they actually get 15 hours, then those professors are
included in semi -unemployment. Or, the efficiency of a lawyer is to run
ten lawsuits a month, but if he actually gets only six lawsuits, then those
lawyers are included in semi -unemployment. According to some experts,
getting less work than qualifying is also called low unemployment. E.g.
M. A. B.Ed. If a junior college profe ssor has the necessary academic
qualifications to hire a clerk instead of a professor, his inclusion will be
unemployed. The question of the low jobless is less complicated.
Exposed or visible unemployment: -
The unemployment that is visible to our eyes is called open
unemployment. When he wants to work on the prevailing wages but gets
no job, he says that the person is obviously worthless. It is obvious that
some individuals do not get any kind of work for some time. That is why
unemployment is called open unemployment. Seasonal unemployment,
creative unemployment, unemployment among the educated is all types of
open unemployment.

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29 Types of Unemployment in India:
There are two types of unemployment in India that can be a)
unemployment in rural areas b) unem ployment in urban areas. There are
three types of unemployment in rural areas:
1) open unemployment
2) hidden unemployment
3) seasonal unemployment.
There are three types of urban unemployment: 1) unemployment among
workers 2) technical unemployment 3) unemployment among the
educated.
Rural unemployment: -
Unemployment in rural areas is called rural unemployment. The
unemployment is very high in India. According to the Bhagwati
Committee, the number of rural unemployed was 161 lakh in 1971, as per
the Planning Commi ssion's estimate, the number of rural unemployed in
1985 was 240.57 million.
1) Types of rural unemployment in India: -
The following types of rural unemployment appear in India.
A) Explicit unemployment: -
About 70 percent of India's population lives in rural a reas. About 65
percent of them work in agriculture and agriculture related business. The
area under cultivated land in the country remains constant. But the number
of people working in agriculture is increasing. So many people have to
work longer hours. Due to population growth, it is not possible for
agriculture to provide full time employment. Also, the proportion of new
employment opportunities in rural areas is negligible. Therefore, the
number of open unemployed in rural areas is increasing.
B) Hidden Unemployment: -
Hidden unemployment is also found in large numbers in rural areas of
India. Many farm workers and farmers themselves are seen working on the
farm. But the growth in productivity due to some of their labour is
zero. Also, in other occupations l ike craftsmanship and retail shopping,
there is not enough employment in all places. Therefore, children at work
in the field or in the shops work as a father or older brother. In fact,
because they have no other work to do, they do not add to production.
That means their marginal productivity is zero. This is their status quo
unemployment.

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30 C) Seasonal unemployment: -
Seasonal unemployment is also widespread in rural areas. Agriculture is
one of the most important occupations in rural areas. But the nature of
agriculture is seasonal. More than one crop is grown in about 7% of the
total land area. So, those who work on the remaining land get one season
and no work for five to seven months a year. Due to the collapse of the
village industries, they have no employ ment opportunities other than
agriculture. Therefore, seasonal unemployment is a major problem in rural
India.
D) Urban unemployment: -
Unemployment found in urban areas, including rural areas, is urban or
urban unemployment. In urban areas, unemployment is m ainly open or
open. This kind of unemployment is not only painful for the people but it
is also very dangerous for the community. As a centre of trade, a centre of
power, a centre of production, a village is transformed into a city. In these
places, employ ment opportunities are created more widely. But urban
unemployment has been created as the number of job seekers is higher
than employment opportunities. Since urban life is more expensive, urban
unemployment becomes unbearable. They are a combination of d ifferent
types of unemployment. The outbursts of dissatisfaction against that state
are intense.
The subtypes of urban unemployment can be summarized as
Follows:
A) Unemployment among industrial workers: -
As the population of the country is increasing rapidl y, the number of
young people who want to work in the industrial sector is increasing. Also,
many young people from rural areas are moving to urban areas for work.
After the agricultural season ends, many laborers rush to the city to get
work. India's pace of industrialization is becoming insufficient to
accommodate all these people in the industrial sector. This has created
industrial unemployment.
Also, in a dynamic age, consumer needs change as the needs of consumers
change. Therefore, the factories that produce the old goods are closed. As
a result, many workers who work in it become unemployed. Similarly,
manufacturers are installing new and automated machines due to the
invention and exploration. Since automated machines employ thousands
of workers, th e majority of these workers are being rendered useless.
Bhagwati Committee estimates that in 1971 the number of urban
unemployed was 23 lakh. In 1985, the number of urban unemployed
increased to 61.72 lakh. In 1990, the city had a regular unemployment rate
of 5.46 million. This suggests that urban unemployment growth was faster
than rural unemployment.
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31 B) Unemployment among illiterates:
Although people are trained to learn, they do not get the job they deserve,
so they are faced with the problem of unemploymen t. According to some
scholars, unemployment of the educated is more dangerous than any other
unemployment.
Education has been widely spread in India since the time of planning.
Every year, millions of young people are graduating from university to
search for jobs. Due to the proliferation of education in India and the
increasing number of graduates, the lack of industrial sector development
could not provide sufficient employment opportunities. As a result,
unemployment of the educated has increased in the country.
A person with the same type of education is capable of performing certain
types of work. If that kind of work is not found then that person is useless.
As the higher the education and the higher the special, the
employment sector becomes limited or narrow and the employment
problem becomes worse.
4.4 REASONS FOR UNEMPLOYMENT AMONG
EDUCATORS
The following are the reasons for unemployment among teachers in
India.
Increase in number of schools and colleges: -
Due to the rapid spread of education in the post -independence period, the
number of schools and colleges has increased dramatically, due to the
huge increase in the number of people who are completing their education
every year. Due to this, it is impossible for the educated to get a large
numbe r of jobs.
Defects in teaching methods: -
The prevailing education system in India is flawed. It does not provide the
knowledge that is useful in business in actual transactions. Therefore, it is
said that the present universities are unemployed factories as it makes it
difficult for them to get a job or to get a job. The unemployment rate has
increased due to lack of market demand for the products produced in these
factories.
Lack of values of labour reputation: -
Generally educated people are expected to encompass mental intellectual
labour. So despite such jobs, they are rejected.
High expectations about the job: -
Educated people have high potential for their job prospects. In today's
young generation, it is difficult for many to feel that starting a business of munotes.in

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32 their own means that they have to suffer physically due to misconceptions
of reputation. That is why B.Sc.(Agriculture) Farmers' children do not get
a job but prefer to remain unemployed instead of cultivating their own
farms.
Lack of technic al vocational education facilities: -
In the event that industrialization is gaining momentum in India,
technical courses should be implemented from school colleges or other
specialized institutions. India lacks technical education facilities. Formal
book education is provided more than vocational education. The education
offered in the College of Arts, Commerce and Science in India is not very
useful in practical life. So unemployment among the educated is
increasing. On the one hand, while there are numer ous well-educated
unemployed youths, on the other hand, there are not enough qualified
students for certain places. This is a major flaw in human power planning
Status of Unemployment in India (Situation)
Urban and rural unemployment in the percentage of the labour force
Survey period Rural areas Urban areas
1977 -78 7.7 10.3
1983 -84 7.9 9.3
1987 -88 5.3 9.4
1993 -94 5.6 7.4
1099 -2000 7.2 7.7
2004 -2005 8.28 8.28
Source - Statistical information govt. of India
India's unemployment forecast (in million) during the scheme period
Sr.No. Five Year Plans Number of
unemployed at the
beginning of the plan Number of
unemployed at the end
of the plan
01 First Five Year Plan
(1951 - 1956) 3.3 5.3
02 Second Five Plan
(1956 -1961) 5.3 7.9
03 Third Five Year Plan
(1961 - 1966) 7.1 9.6
04 Three Yearly Plan
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The Pressure of Population
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33 05 Forth Five Year Plan
(1969 - 1974) 12.6 14.0
06 Fifth Five Year
Plan(1974 - 1979) 14.0 20.6
07 Sixth Five Year
Plan(1979 - 1985) 20.6 9.2
08 Seventh year Five
Plan (1985 -1990) 9.2 8.6
09 Eight Five Year
Plan(1992 - 1997) 23.0 8.0
10 Nineth year
Five Plan (1997 -
2002) 28.0 -
Source - Planning Commission Govt. of India
The table above shows the pattern of unemployment. These tables show
that the population growth is the leading cause o f unemployment, but this
decline is evident from the previous period of the Sixth Five Year Plan.
Planners see changes in the Sixth Five Year Plan as more focus is given to
job creation.
4.5 REASONS FOR UNEMPLOYMENT IN INDIA
The following are the reasons f or rural and urban unemployment while
explaining the reasons for unemployment in India.
Rising Population: -
The huge fast-growing population in India certainly creates
unemployment. India's population has grown by 2.5 percent since 1951.
Every year, the labour force is increasing by 40 to 45 lakhs while 25 to 30
lakh jobs are being created. That is, the problem of unemployment has
intensified as the gap between the demand for employment of the growing
population and the availability of direct employment i s increasing. The
pace at which the population is growing has not provided employment
opportunities. As a result, the backlog of unemployment has increased.
Today, if there are involuntary and semi -jobless people in the country,
four crore people are usele ss. The reason for this is the rapidly growing
population.
Seasonal works of agriculture: -
Indian agriculture provides seasonal employment. Agriculture cannot be
produced in the factory as all production activities can be done
simultaneously. Plowing, sowing, intercropping, weeding, harvesting,
sowing are to be done sequentially. Even two or three persons can do all
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Emerging Issues in Rural Development
34 Nevertheless, sowing harvesting works seasonally. From June to
November, ma ny people get agricultural work, and after the agricultural
season ends, the unemployment period falls on the same workers from
December to June.
Backwardness of Agriculture: -
India's agricultural sector is backward. Indian agriculture has remained
margi nal due to lack of irrigation facilities, lack of infrastructure,
traditional methods of farming, old seed, old tools, conservative approach
to farmers, lack of financing institutions and so on. This kind of backward
agriculture cannot provide adequate emp loyment to the people in the rural
areas. Therefore, rural unemployment is steadily increasing.
Degradation of Traditional Handicrafts: -
In the pre -British period, textile industry, silk and woolen industry,
metallurgy, carving, painting, printing, embro idery industry, paper
manufacturing industry, etc. had gained global popularity. As a result,
millions of artisans were employed in rural and semi -urban areas.
However, due to the anti -British policy of British and Indian manufactures
not competing in the production of machinery in England, the blinding of
the British living standards and the destruction of the monarchy provided
by the Indian goods went to India. As a result, millions of artisans and
workers became unemployed.
Slowing down of Industrializa tion: -
The supply of labour force depends on population growth. But the demand
for the labour force depends on the development of the country. How
many businesses start up in the country? How to increase the means of
transportation.
The extent of employme nt and employment generation depends on the
extent to which trade and communication grows. The higher the speed of
economic development, the higher the speed of employment generation.
The economic development of the country has not taken place at the pace
it was supposed to be since economic planning took place in the country.
This created an imbalance in the number of jobs being created. The result
was an increase in unemployment.
Defective education and illiteracy: -
Although India has completed 70 years of independence, India's education
system remains the same as it was in British times. Business education and
technical education could not find a special place in this system. Anyone
who receives formal education is hesitant to do physical labour. The
purpose of education for the majority of individuals is to do the job.
Education practices that focus on creating self -employment have not yet
come to India. Education should empower you to jump into different real -
life areas. But the situation was the oppos ite. Without the ability to stand
on one's own feet, expect a job. Hesitate to do labour work. Confidence munotes.in

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The Pressure of Population
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35 decreases. Agricultural graduate children of farmers appear useless. This
matter is very thoughtful. In India, according to the 2011 census, 17.86%
of men and 34.72% of women were illiterate. This does not create the
ability to employ them. It slows down the speed of space.
Closing mills and factories: -
Many industries are running for loss due to scarcity and closure. Industries
and mills get sick if the loss of industry goes beyond certain limits.
Eventually those industries and those mills fall off. This makes a large
number of workers useless. In many cities, the number of such sick mills
has increased so that unemployment increases after the first labour
reduction. In 1982, workers in the cloth mills in Mumbai ended up. As a
result, thousands of mill workers faced the problem of unemployment.
Joint family practices: -
Joint family practices have contributed to the disguised unemployment in
rural ar eas. Even when some family members are not required to work on
the farm, they are also unnecessarily working on the farm. It creates
disguised unemployment. Also, due to the inheritance law, there are
subdivisions of land and fragmentation. This makes the land holding area
unprofitable. The family does not live on such a holding area. Therefore,
landlords are forced to remain idle and this creates unemployment.
Mechanization and friction: -
In the process of globalization, privatization and liberalization, a minimum
of labour will be employed using the maximum amount of mechanization
in the industry. Due to lack of proper employment opportunities, urban
unemployment is on the rise. Due to the importance of such factors as
efficiency, education and skills, i nefficient workers in private industry
organizations face unemployment.
Minor wages and unequal employment opportunities: -
Unemployed educators are unhappy with low -paid jobs because of
increased education expectations. They have to be useless even with
education and employment connected. Also, in some families, more than
one person is employed, while in some families it is difficult to find
employment. In many fields, employers are employed in the most
impractical way. Thus, the unemployment rate is incr easing.
Slow financial planning and development slows: -
Financial planning in India has failed to create employment opportunities.
Also, because India is a developing country, low economic growth rates
cannot accommodate the increasing labour force. Ther efore, large
numbers of rural population migrate to urban areas in search of
employment. The combined effect of all of this is on unemployment in
urban areas.
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36 A) GENERAL CONSEQUENCES OF UNEMP LOYMENT
Unemployment is a curse on society. Because of unemployment, the life
of the society is disturbed. Moreover, unemployment is harmful to the
individual as well as the society. So unemployment is the mother of many
social problems. The following are the general consequences of
unemployment.
Inadequacy of Primary Requirements: -
The major consequence of unemployment is that the unemployed are
unable to meet the basic needs of themselves and the dependents. The
result is that the useless person has plen ty of food to eat, as well as poor
clothes to protect his shame. As a result, a person suffers from a serious
disease, affecting the health of the person.
Adoption of Immoral Path: -
Some psychologists believe that unemployment and immorality are
closely related. He says that when the unemployed are not convinced of
the needs of his family by moral means, he meets the needs of his family
by adopting immoral ways. As a result, he has an increasing tendency for
stealing, corruption, prostitution etc. A man steals because he likes to
steal, not because he likes to steal, but because he reluctantly adopts these
methods when all his social paths are closed.
Addiction: -
The unemployed indulge themselves in addictions such as alcohol,
gambling or drug abuse so a s to forget their pain, which also results in a
small amount of capital spent.
Family dissolution: -
Another consequence of unemployment is family dissolution. Whenever
the so -called working men of the house are useless, the women of the
house try to work out of the house. If women in the family are constantly
living outside the house, then they are unaware of their children. If this
activity continues in the long run, it will endanger the survival of the
family.
Class struggle : -
Unemployment does not rule out the possibility of revolution or class
struggle in the country. The reason for this is that it is worth mentioning
that the worthless man has money and money, and even though he
works hard for it, he does not get enough money. On the contrary, he
also sees that some people in the country suffer, enjoy, relax and enjoy
their lives. Then, in the minds of the unemployed, these people suffer from
hatred. When it all goes beyond the endurance of the waste. Then these
men come out on the road to take up th e cause against the rich. This may
increase the class struggle.
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37 Barriers to Economic Development: -
Unemployment is a huge socioeconomic problem. The time when I take
the problem seriously, it poses a serious threat to the economy of the
country. In that case, all the attention of the government towards the
eradication of the problem and consequently the money spent on economic
development and the economic development of the country is spent on this
problem.
Waste of labour force: -
Unemployment, semi -unemployment and hidden unemployment is a huge
waste of the labour force in the society. Since labour is perishable they
cannot be stored. Durable goods can be stored and used when needed. But
labour is not so. During unemployment, unused labour is wasted in one
way
B) Financial Impact of Unemployment: -
Waste of resources: -
Human resources are essential to the economic development of the nation.
When there is unemployment, productive human resources are wasted.
When jobs are provided to the unemployed, human resources work and
contribute to national income. But if human resource utilization is
inadequate, the production of goods and services in the nation will be
less than productive and its adverse effects on life.
2) Implementation of welfare schemes difficult: -
If income is available to the people economically, then national income
will increase. As a result, the government can collect revenue from the tax.
The revenue collected can be used on developmental schemes like water
supply, roads, houses fo r the poor. But this is not the case.
3) Inequality in poverty and income: -
There is a close correlation between high levels of unemployment, poor
unemployment, and the disproportionate share of income. From this, it
seems that the poor get poorer and th e rich get richer. Thus there is an
inequality in income.
4) Enhancement of informal sector: -
When people in the villages are unemployed, they have to migrate to the
city for employment. These immigrants live in unemployed cities and live
on low -income jobs.
5) Increase in financial crime: _
Some people who are unemployed and semi -employed are attracted to drug
sales, trafficking, and cybercafé crimes.
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Emerging Issues in Rural Development
38 C) Social Outcomes: -
1) Social Stress and Unrest:
Unemployment increases social unrest by increasing stress in society.
2) Loss of human values: -
Unemployment creates a feeling of being undervalued in youth, thus
creating a feeling of being undervalued in society.
3) Increase in lean: -
Instead of accepting life's challenges, unemployed youths shy away from
reality. They blame luck for their failures.
4.6 MEASURES TO REDUCE UNEMPLOYMENT
Eliminating unemployment is important for the country. After the
independence, this problem has taken a serious shape in India and the
problem is increasing day by day. The f ollowing steps need to be taken to
reduce unemployment problems.
Controlling population growth: -
Without slowing down the pace of population growth, the problem of
unemployment is unlikely to decrease. This should impose strict controls
on population growth. Efforts to show the success of a family planning
program are essential. Controlling population growth will help reduce
unemployment automatically.
Speeding up economic growth: -
Here is what you need to do to accelerate economic growth.
1) Developing technical tools, irrigation schemes, restructuring of
agriculture and bringing about green revolution in the country.
2) Establish a bulky industry and accelerate industrialization.
3) Cottage industries To revive small businesses and develop them
properly.
4) To achieve rural development through small irrigation schemes,
road construction schemes and other public schemes.
Improvement in education system: -
The existing education system based on British tradition should be
abolished and replaced with an improved educ ation system. Commenting
on the current education system, education experts say that we make
young people's lives, but they do not teach them how to make a living.
The number of educators practicing in the field of education in the field of
education is high and the technology is lacking. To prevent this, the
government has removed technical education institutions for the youth
through the Five Year Plan, but the situation has not made any significant
difference. For this, the Planning Board suggested that after primary munotes.in

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The Pressure of Population
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39 education the curriculum should be designed to meet the needs of all the
regions of the country.
Application of labour intensive production techniques: -
If the government uses more labour -intensive production techniques while
planning econo mic development, more employment opportunities will be
created. For this, it is necessary to promote small and cottage industries,
possibly using simple and easy equipment to start cotton mill, textile
milling in rural and semi -urban areas. There is a need to follow the path of
starting small business processes, etc.
The government is encouraging small businesses to create jobs in urban
areas. Since these industries are set up in labour intensive and low capital,
unemployment is effective.
Increasing the Productivity of Agriculture: -
Seventy per cent of India's population depends on agriculture for their
livelihood. About 70 percent of the population provides seasonal
employment. Therefore, seasonal unemployment is created during the rest
In order to reduc e this seasonal unemployment, subsidy should be given to
the government for power pumps, chemical fertilizers, seeds, pesticides,
drip irrigation systems, sprinkler irrigation systems, digging wells, buying
land, leveling land, etc
Measures taken by the Government of India to reduce
unemployment: -
1) Unemployment Allowance Act:
It was enacted to provide a little comfort and a little financial support to
the educated and especially graduate educators of India. This law was first
approved by the Maharashtra government for its state. Accordingly, if the
graduating unemployed person was unable to employ the unemployed in
the fourth year after enrolling in the Employment Exchange, then the Act
provided for an allowance of Rs 100 per month for such unemployed
gradu ates and post -graduate unemployed.
2) Rural Employment Program: -
Government of India launched this special program from 1971 -72. It was
decided to provide at least 105 days of employment to at least one person
in each family. Similarly, the scheme was to pro vide employment to at
least ten months a year to 1000 maids in different places across the
country. 150 crore has been spent on this scheme. Durable property was
created in rural areas. Parks, drinking water supply schemes, flood control,
road repairs, lan dscaping etc. were carried out.
3) National Rural Employment Program:
The scheme was launched in 1980 to provide employment to people in
rural areas after the end of the agricultural season. It was decided that the
Central Government and the State Government should cover 50:50 percent
of the cost of the scheme. The government has implemented several munotes.in

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Emerging Issues in Rural Development
40 schemes to provide employment in rural areas. The National Rural
Employment Program can be described as a successful and popular
scheme. Due to this scheme, perma nent construction schemes were
implemented in the village.
4) TRYSEM scheme: -
The aim of the scheme is to provide self -employment training to the youth
to reduce unemployment in the rural areas. Accordingly, every year, two
lakh youths from rural areas were trained for various occupations and
were empowered to make self -employment self -employed. Preference was
given to the youth of the scheduled castes and tribes. It was decided that at
least 33.33 young women would be provided self -employment training
while opting for the scheme.
During the training period, only one hundred rupees was paid. The role of
the program was to provide their own business by providing at least 3
days of training in poultry farming, animal husbandry, beekeeping,
jiggery, pottery produ ction, wool production, carpentry, blacksmith work.
5) Jawahar Rojgar Yojana: -
In the birth anniversary of Pandit Jawaharlal Nehru, the scheme was
launched in 1989 to create sustainable employment in rural areas. The
central government had provided Rs. 2100 crore. Under this scheme, the
program was merged with the National Rural Employment Program and
Rural Landless Farm Workers Employment Guarantee Scheme and the
rural employment program was broadened. The main objective of the
scheme was to provide employme nt to unskilled laborers in rural areas and
increase their income. On an average, the target is to spend around Rs 5
crore in each district. Gram Panchayats were given productive work in
Jawahar Rozgar Yojana.
6) Employment Guarantee Scheme: -
There was a sev ere drought in Maharashtra in 1972. In this drought
situation, the Government of Maharashtra launched this scheme to provide
work to the citizens. Rural people were provided with labour in village or
village area. In 1990, the scope of rural employment was further expanded
by adding a plantation planting scheme to the scheme.
In addition to this, the central government has initiated schemes to create
self-employment opportunities for the youth, such as the Prime Minister's
Employment Program, the Golden Jubilee Employment Scheme, the
Golden Jubilee Urban Employment Scheme, as well as Make - in-India and
Skill India.
The central government has launched a Start -up-Village Entrepreneurship
Program with the aim of opening more and more industries in the rural
areas. This scheme will be very useful for rural youth to start self
employment.
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The Pressure of Population
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41 4.7 SUMMARY
At the age of 14, a person is ready to work at the prevailing wage rate. The
search for work is underway. There is a strong desire to keep yourself
alive. Even in such a situation, preparation does not work. Unemployment
has gained serious form due to the increasing population in India,
increasing number of workers and the lack of employment in all three
sectors of the economy (agriculture, industry and service sectors ). In India,
unemployment is seen more or less in both rural and urban areas.
According to that section, although there are many types of
unemployment, hidden unemployment in agricultural areas in rural areas
and apparent unemployment in urban areas due to technological
advancement and migration are more prevalent.
Unemployment is linked to income as it has social, economic
consequences. An unemployed person becomes mentally depressed and
lowers his confidence. It attracts anti-social activities. This raise s
questions of social security. The consequences of this have to do with the
economy. In order to reduce its inflammation, the government has tried to
reduce unemployment by implementing large scale employment programs
during the five year plan. But unempl oyment in India has not decreased
yet.
4.8 QUESTION BANK
1. Explain the concept of unemployment and explain the scope.
2. Describe the different types of unemployment in India.
3. Explain the unemployment situation in India.
4. Explain the various reasons for unemploy ment in India.
5. Explain the socioeconomic consequences of unemployment in India.
6. Review the Government's plans to reduce unemployment in India.
4.9 REFERENCES
1) Eradication of Unemployment and Rural Development YCMOU
March1989
2) Desai and Bhale Rao-Indian Econo mic System, Nirali Prakashan Pune
3) Dr L.Torane and Jayashree Mahajan Indian Society, Prashant
Publication Jalgaon
4) Monthly Magazine Yojna Vol 11 , June 2017 Navi Mumbai

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42 5
SUBDIVISION AND FRAGMENTATION
OF LAND
Unit structure :
5.0 Objectives
2.1 Preface
5.2 Means of subdivision and division of land.
5.3 Causes of subdivision and fragmentation of land.
5.4 Benefits of Land Subdivision Fragmentation
5.5 Impact of subdi vision and fragmentation of land.
5.6 Measures on subdivision and fragmentation of land
5.7 Summary
5.8 Questions
5.9 Book Reference
5.0 OBJECTIVES
After reading this chapter, you will understand the following.
In the presented cases, we will study the load on the population of the
land and subdivision and fragmentation of the land.
First you:
1) We will understand the meaning of division and division of land
2) Understanding the nature of subdivision and fragmentation of land.
3) We will study the causes of subdi vision and fragmentation of land.
4) Understand the benefits of subdivision and fragmentation of land
5) Understand the consequences of subdivision and fragmentation of
land.
6) We will study the measures to reduce subdivision fragmentation
of land.
5.1 PREFACE
The growing population of the country contributes to economic
development and is also burrier. As long as population growth is slower munotes.in

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Subdivision and
Fragmentation of Land
43 than national growth rate, increasing population is conducive to economic
development. With increasing population, economic activities of
production, division, exchange and consumption are accelerated. But if the
pace of population growth exceeds the pace of national production growth,
then there is an outbreak of population growth in the country. Explosio n
systems have an additional burden on the economy of the population. The
pace of economic development slows down. There is a real strain on
essential goods and services and civic amenities. Increasing population
destroys economic development. This is the situation that has happened in
our country today.
The small size of the holding area is said to be the major reason for the low
productivity of agriculture in India. The size of the holding area in India is
small, but it is scattered in many places in smal l pieces. In each generation
the holding area continues to be fragmented and partitioned, and the
size of the holding area is continually becoming smaller. The small size of
the holding area creates many problems for agriculture.
While studying the Indian agricultural business, one should also consider
fragmentation as one who studies mechanical agriculture, irrigation
practices, land policy etc. to increase agriculture production. Because
compared to other countries, the land in our country is divided into small
pieces. On average, considering 2/3 of a piece of land, the land is divided
into less than two hectares.
Due to the fact that the land is divided into small pieces, new experiments
like mechanical farming cannot be done for the farmers in their fields.
This is something we always see in the mechanics of agriculture. It is not
financially viable to carry large machinery on small land. Therefore, the
peasantry prefers to use only bullock farming in such land. This means
adding pieces has become a neces sity today.
Means of fragmentation: -
1) According to the law of inheritance of one's land, the division of land
into many persons due to transaction of purchase or sale, mortgage and
prize etc. is called division of land.
2) Fission is the division of a piece o f land into small pieces according to
their productivity
One of the factors that hinders the way of agricultural production is the
small holding area. The process of fragmentation of land for any
reason is called subdivision of land. If a person's land i s divided into
small pieces according to the type of productivity, that process is called
fission.

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Emerging Issues in Rural Development
44 5.3 CAUSES OF SUBDIVISION AND
FRAGMENTATION OF LAND
Population growth:
One of the important reasons for the division of agriculture is population
growth. N o matter how much family planning has spread, our population
growth rate has not slowed down. The population is increasing by one
crore every year. Agriculture is one of the most important means of
livelihood for a growing population. Agricultural land does not grow.
However, as the population grows steadily, additional loads fall on the
ground. Therefore, the land is divided into different pieces. As there is not
enough business available in other areas, rural people has to rely on
agriculture.
Love of the land: -
Having more and more land is considered a sign of prestige in our country.
So people who have a lot of money buy more and more land. Farmers who
sell their land to those who have poor economic conditions. This leads to
the fragmentation of the land.
Feelings of personal interest: -
The influence of Western culture reinforced a sense of personal self-
interest. So he tries to consolidate his father's land. This has led to the
fragmentation of the land.
Heritage Rights:
There is a law of inheritance in our country. Therefore, the ancestral land
is distributed among the children. So pieces of land fall. This has been
the case for many generations. Therefore, the division of land becomes
more and more .
The downfall of the family system together: -
In the past, there were joint or undivided family practices in our country.
Others lived under the control of one family head. The land was, of
course, one. But the influence of Western education increased. The
influence of education has led to an overestimation of ideas of freedom,
individualism. This resulted in the breakdown of traditional family
practices. The brother -in-law and his wives began to feel that they wanted
everything to be independent, their own. Each brother began to ask for a
share of the land he had divided. As a result, pieces of land began to fall,
and fragmentation increased with each subsequent generation. As the
pieces increased, the area of the land decreased.
Social Reputation: -
Real estate is considered a sign of social status in India . So everyone
wants to own land. So the land has to be broken. Even if you get an acre
piece, it is a matter of great pride. Therefore, we are the owners of the
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Subdivision and
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45 Loss of workmanship industries: -
In the past , there were various types of cottage industries operating in the
countryside. For many there is a definite source of employment available.
But industrialization increased the production of mechanical industries.
Because the speed of mechanical production is huge, the goods cannot
compete with those goods. As a result, many rural people have to rely on
agriculture for the survival of many workmanship in rural areas. This has
been an important factor in the division and fission of land.
Farmers' Debt: -
The Indian farmer is poor and he has to borrows for agricultural activities,
religious rituals, marriage, various festivals. Farmer has to go to a lender
for a loan. Without a mortgage he does not lend. The farmer has to lend a
portion of the land to the lende r for a loan to the lender. If the loan does
not payback, the mortgage land confiscate the lender. This is how the
piece of land falls .
Land laws: -
During the post -independence era, many laws related to land were
implemented in our country. Size of Land H olding Act', 'clan law' etc.
These laws caused the land to fall into pieces. Immediately after they had
heard of the High Land Acquisition Act, they divided the land among the
children, brothers and sisters. Accordingly, the clan owned the land that
the cl an owned. So they had to break it apart. As a result, pieces of land
fell.
Bhudan Movement:
Through the almost allotment of land that was given to the peasants of
Bhutan through the Bhudan agitation, it led to the partition.
Development Plans: -
Irrigation schemes are implemented as part of development plans. The
people who are displaced due to irrigation schemes have to be
rehabilitated. While doing this rehabilitation, land areas have to be
given through pieces. So it promotes fragmentat ion.
There are reasons for the division of farmland as above.
5.4 BENEFITS OF LAND SUBDIVISION
FRAGMENTATION
Prospects for intensive farming: -
If you have a large amount of land, the farmer removes much of the
produce without getting much attention, but if there is a small land area,
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46 Financial stability is achieved: -
Since every farmer gets a small piece of land for cultivating a piece of
land, there is an opportunity to cut the crop pro duction in small quantities.
Therefore, to a lesser extent every farmer receives financial stability.
Farmers may get various land benefits: -
Since a farmer divides the land into several pieces, the land varies.
Farmers benefit from various land fragments .
Contribution to drought conditions:
In case of drought, the crop from one land may disappear, but if another
crop is kept in the other crop, then in such situation, the process of
fragmentation is helpful for the farmers.
Conversion of farm laborers into farmers : -
The small pieces were converted into farmers for the purpose of
consolidating farm labour through some government schemes.
5.5 IMPACT OF SUBDIVISION AND
FRAGMENTATION OF LAND
Looking at the overall effect of subdivision or fragmentation of land, they
seem to have had the opposite effect.
Prevention of Modernization: -
If the area of the field is large in size, the device can be put to good use. It
is difficult to use small tractors such as tractors, power tiller, etc.
Therefore, agriculture is traditionally cultivated. The result is
reduced agricultural productivity. That is, the division of farmland
prevents modernization and productivity.
Prevention of agricultural improvement: -
If the area of agriculture is small in size, the use of i nputs like improved
technology, hybrid seeds, fertilizers etc in agriculture is prohibited. The
result is reduced agricultural productivity.
Limited use of tools: -
In small -scale farming, bullock or other equipment’s cannot be used
properly. Therefore, th e cost of production increases.
Disadvantages of water supply:
If the farm is divided into several pieces of land, then there are
inconveniences to supply water. Therefore, it is impossible to bring every
piece of land under irrigation. Sometimes it is nec essary to provide water
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Subdivision and
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47 Wasting waste of labour, time and energy: -
Due to the small pieces, agricultural implements have to be moved from
one place to another. Fertilizers, seeds, plows and similar harvests
should be taken from here. So a lot of time is wasted. Wastage of labour
and power.
Land Abuse: -
Due to the small pieces of farmland and it is dispersed in different places,
land has to be used for fencing, dam for each place. This way the land is
wasted . Some of that land has to be preserved for footing. Therefore, the
cost of production increases.
Disadvantages: -
Fragmentation creates many kinds of inconveniences. If there is only one
well in a large farm, it is sufficient. The pieces have to be shared well. It
creates inconveniences. The use of water from the wells creates tensions.
Depending on the individual maintenance, each piece has to be set.
This increases the cost. Such inconveniences are increasing.
Poverty: -
Partitioning gives everyone a bit of land. Such land does not generate
enough income. The size of the farm is small and cannot be improved. It is
not economically affordable. Farming has to be done in the traditional
way. Therefore, it has to be done only for agriculture. This kind of
agriculture produces very little income. So the farmer has to live a life of
poverty.
Increase in credit worthiness: -
A family's land is not functioning well enough in small pieces of land. As
a result, the farmer has to take out a loan. Debt increases and farmers
become more involved in debt deficit.
Disguised unemployment false reputation: -
The farmer gets a small piece of land. That is why not everyone in the
family has a job to do. All the members in the family show how we work
hard on the land we own. T hey claim that they are the owners of the land.
Overall fragmentation reduces agricultural productivity. This is a very
important result. Also, there is a decrease in national grain production.
Farmers and society do not get any benefit from it. Also, due to
fragmentation, the size of the cultivated land has become very small.
Therefore, the cost of production is increasing while the production is
small. The yield of the farmers is small. Farmers' borrowing for
production is limited.
Explaining the bad resu lts of the subdivision of the holding area, Dr. Man
said, "It strikes the ground. There is additional wastage of labour. A lot of
land is lost due to the border lines. It could not be cultivated in such a munotes.in

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48 sophisticated manner as the holding area could be cultivated. "
Some measures need to be taken to avoid the adverse effects of
subdivision or fragmentation of the above ground.
5.6 MEASURES ON SUBDIVISION AND
FRAGMENTATION OF LAND
Co-operative farming: -
Combining the land divided into small pieces of diff erent farmers by co -
operative principles guiding them to take up agricultural production will
help increase production.
Strict enforcement of piecemeal laws: -
The various laws regarding the fragmentation should be strictly enforced.
Individuals who violat e these laws should be subject to stringent discipline.
Nationalization of agriculture: -
Such small pieces must be nationalized in order to transform overlapping
pieces into profitable pieces. That is, it should be divided into profitable
areas.
Adoption of a joint farming system:
Even though separate family practices exist with division of the joint
family, the land can be farmed jointly without dividing the land. So that
the ground won't fall off.
Consolidation of Joint Land: -
All farm land in each village should be consolidated and given financial
strength to each family in succession. Consequently it can solve many
questions.
5.7 SUMMARY
Land is one of the most important aspects of human life. Agriculture is the
main business of the Indian economy, its ability to meet the needs of the
growing population, its importance in the process of development, various
laws on land (inheritance rights law), the love of the land of the Indians
for many reasons, the land is divided into important components according
to need and ownership. Subdivisions and fragments have fallen.
Large areas of land Allotment of land to the landless, land use for
universal agricultural practices development projects, etc. Although
beneficial for a number of reasons, it is important for agricultural
livelihoods, farmers need to have maximum holding area for it. But due to
the inheritance and acquisition of land for various reasons, its subdivisions
and fragments fell. Even when there was no timely desire, the farmer had
to divide the inh eritance land. This led to the division of production land munotes.in

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Subdivision and
Fragmentation of Land
49 and the question of their livelihood. Increasing population, low
employment opportunities in the second and third sectors, have left people
with no choice but to rely on primary business. As a result, the burden of
population on the land increased.
5.8 QUESTION BANK
1) Explain the concept of subdivision and fragmentation of land.
2) Explain the nature of land subdivision and partition.
3) Explain the reasons for subdivision and fragmentation of land.
4) Explain the effect of subdivision and fragmentation of land.
5) Explain the benefits of subdivision and fragmentation of land.
6) Suggest measures on subdivision and fragmentation of land.
5.9 REFERENCES
1) Gurunath Nargonde -Rural Sociology, Continental Publication Pune
2) Desai and Bhale Rao-Indian Economic System, Nirali Prakashan Pune
3) Prof L.G Bapat –Problem and Prospects of Indian Economy
4) Dr Gangadhar Patil-Indian Economic System,Chaityana Publication,
Nashik
5) Dr Vijay Kavimondan - Agricultural Economics, Shree Mangesh
Prakashan Nagpur
6) Shridhar Deshpande and Vinayak Deshpande -Indian Economic
System, Himalaya Publication House, Nagpur Mumbai



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50 6
MIGRATION OF POPULATION
Unit Structure :
6.0 Purpose
6.1 Preface
6.2 Migration Concepts
6.3 Types of Migration
6.4 Factors affecting migration
6.5 Causes of Migration
6.6 Rural Urban Migration Trends
6.7 Urban Rural Migration Trends
6.8 Migration Impact
6.9 Migration measures
6.10 Summary
6.11 Question Set
6.12 Reference Books
6.0 OBJECTIVES
After reading this chapter, you will understand the following.
1) Different concepts of migration can be understood.
2) Different types of migration can be studied.
3) Factor s influencing migration can be studied.
4) Study the reasons for migration.
5) Understanding the trend of migration in rural - urban or urban
rural areas can be taken
6) Impact of migration on rural and urban communities can be studied.
7) Migration plans can be studi ed.

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51 6.1 PREFACE
Everyone is doing some kind of financial business for their living. When
citizens do not have this kind of business available in the surrounding
area, the tendency of locals to move to other areas in search of business
is increasing. This is where the migration process begins.
Although migration is an important factor in population dynamics, there is
a fundamental difference. Birth and death events are inherently biological
and are influenced by social and economic factors. Migration is the
culmination of the transformation of the human element and the human
response to the social and economic differences between the human
group.
The change in population due to birth and death is more rapid and
progressive than the change in population. Although human nature is
natural to migration, the complexity of the human mind is expressed in the
process of migration. Migration refers to the transfer of all components
from the original location to the temporary migration and migration from
overseas.
Migration In this sense, certain types of motion are inherent in the
universal movement of human beings. Even though migration means
transfer from one place to another, in this concept, the purpose of
migration is also important in terms of distance between t wo places and
duration of migration. Nevertheless, not all the movements of
humanity are shifted in terms of population as a matter of migration. In
view of all this, the definition of migration is as follows:
Migration means leaving a residence or residen ce in a geographical
location or region for a specific purpose, and moving to an institution or
region other than that.
In the presented case, we will study several aspects related to migration
6.2 CONCEPTS OF MIGRATION
Migration is the movement of people from one place to another.
1. Wetburg
The common migration between them is to change the living space
permanently or temporarily. For example seasonal laborers.
Patterson:
Migration is usually a permanent movement or shift that takes place
over a long distance.
Aysinstrand -
Migration is the transfer of one person or group from one community to
another. These types of changes usually involve changing the old social munotes.in

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52 structure into another kind of social structure.
6.3 TYPES OF MIGRATION
Although the United N ations has suggested mainly two forms of
migration, both internal and international, the following are some of the
types that fall under the criteria of time, human desire, and migration ratio
when discussing this complex concept of migration.
Types of Migration




Internal Migration International Migration


By the tim e According to the By the proportion In the
context of boundary element of migration human desire


Ancient Migration International Personal Optional
migration migration
Medieval Inter -provincial Collective Involuntary

Modern Domestic Alert migration
Under the village
Rural -citizen
Rural -rural
Urban -rural
Urban -Urban
Migration

6.4 FACTORS AFFECTING MIGRATION
Although the process of migration may seem simple, it is a very complex
series in terms of human attitude, geographical, natural conditions,
observable and dispatcher reasons, distance and time. Since migration is
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53 migration to understand its background.
Natural/ geographical elements Human/ cultural factor
Auxiliary factors:
Property abundance -
Land, water, minerals, soil and forests are always attractive to
humans. The rich landscapes of India's rivers are attractive to foreigners.
The Aryans migrated and settle d here from the northwest. The property
offers opportunities for development in the pristine area.
Weather: -
The favourable climate attracts humans as it promotes human health. The
climate here in the Mediterranean coast increases the migration of
migrant s to the respective countries.
Soil: -
The rich soil was concentrated in the field. Mohenjo -Daro - Harappa
(Sindus), Babylonian, Egyptian (Nile) and Chinese (Hwang -Ho) cultures
have evidence of a deepening of the rivers.
Cultural factors: -
The areas of stable folk life, solidarity, peace, security, freedom,
educational opportunities and facilities are attracted to the human in the
cultural element.
Human Will: -
Whether or not to migrate is usually part of human decision, human will
and motivation have great importance. The migration rate for financial
business, excellent opportunities and high wages is already high. With the
increase of trade, industry and transport facilities, migration has been a
major boost and the urbanization process has been accelera ted.
Modernization
Migration takes place due to modern living standards, comforts, lifestyle
changes, transitions to elite needs, ideological churning and progressive
thinking.
Motivational factors: - Natural Disasters: -
Natural disasters cause forced mig ration. Such migrations occur due to
earthquakes, floods, volcanoes, pestilence. For example, severe
earthquakes in Chili (1960) and Mesquiko (1985) led to large migrations
from the respective parts of the two countries.
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54 Weather: -
Storms, storms, rainfal l, and blizzards migrate during severe weather
conditions. For example, in 1987, a massive hurricane in the country of
Bangladesh caused a large number of internal migrations.
Social factors:
1. Human Desire: -
Restlessness, unrest, panic, harassment thr eaten human peace. Events
against the desire for happiness are forcing humans to migrate.
2. Financial aspects: -
When the financial condition of the human race gets worse and the basic
needs become difficult. Humans are then prompted to migrate.
3. Cult ural factors:
People migrate from such turbulent areas because of the political, social
and religious factors of human factors. Considering the unrest in the state
of Kashmir, Punjab and Assam recently in India, the rate of migration
from neighboring to safe state has been increasing.
6.5 CAUSES OF MIGRATION
The maximum population of the country is in rural areas. That is, 70
percent is in the village and 30 percent in the urban area. The people
living in the rural areas are mainly in the villages, hills an d deserts. Due to
the lack of amenities in the rural areas, the proportion of people leaving
the villages to the city has been increasing steadily for the last fifty -sixty
years. Despite being an agrarian country, agriculture is mainly used in the
traditio nal way. This leads to lower income. In today's situation, the
following are the reasons why people from rural areas migrate to the city.
Rising Population: -
Population is increasing everywhere in the country. People are sleeping on
the streets with no pl ace to sleep in the city whereas the rural population is
responsible for the increasing population of the city. The unemployment
rate of people from the village is increasing. So there is an increase in
unemployment. Since there is no previous situation for everyone to
depend on agriculture, the people have not got the job. People are starving
because of lack of food for their homes and stomachs. As the family
planning is neglected, the birth rate is increasing. People are migrating to
the city due to lower income and increasing population.
Traditional agribusiness: -
Although agricultural implements have been created, not all agricultural
holders can use them. The former farmer, who used to do much labor
using bull and wood tools, is still in the same state today. Although the munotes.in

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55 number of eaters has increased, the yield is decreasing due to the lack of
modernization in its farming techniques. Moreover, due to the increase in
population, the proportion of land mines has increased tremendously and
it is not poss ible to live on a small piece of land. He also got employment
in the village. Therefore, the proportion of migration has increased.
City Attractions: -
Rural life is simple. In rural life, it is the same, people are eager to try
something new. The city wou ld have had the opportunity to change its
religious and social position. The speed here is fast. Due to movies,
theaters, zoos, shops, hotels, leaflets and other entertainment venues, the
attraction of the people is increasing in the city as the transition to rural
life has taken place. Due to the attractiveness of the city, many people
from the rural community have settled in the city.
Employment Assurance
The unemployment problem in rural areas has increased and the number
of people migrating has increase d, hoping that the city will be reduced.
Because of the seasonal work, there is no time to settle down for the rest
of the day, so there is a time for starvation and those who work on the
farm to starve. Moving to the city to reduce the hunger strike, peop le go to
the city hoping that there will be some work there.
Availability of Facilities: -
Due to the various amenities available in the city, many people from the
village come to live in the city. Being in the city gives her the opportunity
to shape her goals as the person wishes. They have the opportunity to
work in education, trade, employment, self -employment and many other
fields. People from rural areas who come to the city come for this purpose.
Often he is deceived but does not care. So they are reluctant to go back to
the village.
Check your progress:
Mention the reason for the migration.
6.6 RURAL URBAN MIGRATION TRENDS
The maximum population of the country is in rural areas. He continues to
live on a farm and traditionally run business. But with the change in the
overall economic and social conditions of the entire country, the trend of
the people is shifting towards modern technology and new thinking.
Changes in caste system and new economic activity have destabilized the
overall life style of th e people. Many families have been relocated due to
the traditional farming businesses that do not have favorable conditions.
As the distance between the caste systems is increasing day by day, one is
free to do some farming and other business, but in the past he owned
farming, he still owns it. Due to the possibility of the introduction of
civic life and education, etc., the influx of village population is
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56 Jobs: -
Due to the high population in rural areas, p eople do not get work. So
many started coming to the city with the intention of getting something
done. Due to the fact that many factories are being created in the city, it
was created to create wages and jobs. After settling in the city, there were
small jobs. Getting a wage or a job from a factory makes life difficult to
diagnose. One or two persons in the household settled in such a place and
so are the others. They start helping other family members financially. All
those who have farming in the villag e, without settling in the city, work
for some time and come back to the village for farming.
Education; -
Primary schools have been started in every village to spread education in
rural areas. Secondary education is also provided in some villages. But
many students go to the city for further education. There, after completing
his education, he starts to work in the city. Slowly, other people in the
family also come and stay. That is, many people have started migrating
not just for the purpose of net educat ion but also for employment.
Modernity: -
Day by day, the distance between the city and the village is becoming
bridged by the media and the means of communication. Rural healthy
living is very popular for many. Being the same person and wanting to do
some thing new, even the situation and the attraction of the city has made
people attractive. Because of the many amenities available in the city,
people are starting to feel attracted to it.
Film houses, theatres and zoos, museums, gardens, playgrounds, people of
different ethnicities, different languages have increased the attraction of
the city to the villagers.
Check your progress:
Explain the trend of rural urban migration.
6.7 URBAN RURAL MIGRATION TRENDS
The proportion of people living in the village is decreasing. However, the
rate of migration from village to city is high. Since only livelihoods are
not available, the attraction of education and civic life creates a special
attraction for the people of the village as they settle in the city, and the
people of the town do not come to settle in the village. But some people
have started moving from town to village, despite being underpaid. The
reasons are as follows.
Natural Life: -
There are many people in the society who want to live a natural life. They
are bored with the sparkle and splendor of civilian life. They do not want
this mechanical life to lead a life without humanity. People who want to munotes.in

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57 sell real estate in the city, rather than live with their farm or live in the
property, only want to build a house in the village. As the city is engulfed
in its overwhelming life, many are living in the village to enjoy the natural
beauty of the people and to enjoy the unwavering love and cooperation of
innocent people. That is, their reason for living in the v illage is because of
their desire for pure natural life.
Agriculture: -
If the pearl is not ripe in the agricultural business, then only the soil is
owned. But those who do not have a rural livelihood, want to go back to
the village and cultivate agricultu re. Some people migrate from town to
village for farming and other traditional pursuits. This trend has started to
increase in the civilian population. However, some stay in the village for a
few days to spend the rest of their lives. In addition, the numb er of people
going to the village for employment is also increasing. If you can't get a
job or get a job in the city, you can't have a living. The trend of
consciously living in the village has also become common among some
people. Moreover, if you do not get the income you need to become a
doctor, some are migrating to the village to get it.
The boredom of urban life: -
Although urban life creates happiness, there are many kinds of problems
that are boring. The question of living homes has become very
comp licated. Four or five people have to stay in slums or small rooms, and
the mood is sore. Therefore, their tendency is to migrate to the village.
Retirement: -
Job-seekers need to quit their jobs one day at a growing age. When they
retire, they have nothing else to do in the city. Earnest Boys - Girls have to
stay separate. As everyone is busy with their work, men of old age have
no one close to their age. So many people prefer to leave the city and live
in the village so they can go to the village to do some farming business or
chat with the empty ones.
Home Problems: -
The problem of living in civil society has become an independent and
important issue. Many people live in a lonely city and sometimes with
family members in their hometowns. Thousands of peopl e are working
alone and doing other business because of not getting enough space.
The number of people settling in the villages is very small. But for some
reason, because of the fact that people in the city prefer rural life, the
increasing population pre ssure on the city is helping to ease the many
factors.
Check your progress: -
Explain the trend of urban rural migration. munotes.in

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58 6.8 MIGRATION IMPACT
Dissolution of a Joint Family: -
Migration has led to the dissolution of the joint family and increasing the
number of separated families. Due to the fact that it is not possible for
everyone to live in the village, the family members are automatically
disbanded as some of the family members migrate. Likewise, the family
has been disbanded due to people leaving t he family with education or
other motives in mind.
Agricultural Stress: -
Although agriculture is the main occupation of the rural people, due to
the growing population, it is impossible for everyone to survive on small
scale agriculture. Moreover, as the seasonal works and mechanization of
agriculture have begun, the conditions of farm labour have begun. The
economic struggle between the landlord and the labourer has begun. If
there is no work in the village, the labourer is going to the city or other
empl oyment guarantee scheme work immediately. The agribusiness is in
crisis due to the increasing number of migrants.
Neutral community spirit: -
Due to the increasing number of migrants, the feeling of neutrality has
gradually increased in the village people. With the opportunity to do
business independently, the tendency for interdependence is diminishing.
With the availability of services and goods in exchange for money and
where these things are available, our sense of belonging has diminished.
In the past, there was a sense that there would be no agriculture without
labour. But now that work is not being done in one place, but in the other,
it is with this confidence that a neutral sense of community has started to
develop.
Impression of Civil Life: -
Citiz ens of the underdeveloped area are experiencing changes in the area
of living, language, ethics, interaction, business, income etc. for the
people of the village. The use of television, radio, table -chair iron and
wooden cupboards, steel and plastic utensi ls, clothing, various other items
of daily use, etc. has begun in the village. Discussions are being conducted
using newspapers and magazines.
Cultural Impact: -
Citizens' culture is affecting rural life due to daily relations and migration.
Migration is n ot the only cause of cultural influence, although it is true that
other family members of the people who have settled in the city live in the
village. Others have begun to imitate them as they begin to use what they
bring for them. Moreover, as the use of a wide variety of entertainment
items has begun to influence the urban culture of rural life.
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59 Availability of Convenience
With electricity and amenities available in the city, many people come to
the city for illiteracy in the village. There are many comf orts of living in
the city. There is a chance for a person to shape his or her goals according
to their wishes. They have got the opportunity to work in education, trade,
job employment and many other fields. People from rural areas who come
to the city co me for this purpose. Often they are deceived. But they don't
care. So they are reluctant to go back to the village.
Interest in Education:
Schools are started in each village. As a result, people who have been
educated have moved to the city. They were edu cated in the city as they
were inspired by their migration to education. Younger educators have
moved to the city to get a job. This ratio is constantly increasing. Due to
the interest of education, many people who went to the city to get more
education se ttled there. That is, education is also a factor responsible for
migration.
Free relations between men and women: -
Due to the increasing number of migrants, the open relationships of
migrant men and women, which are integrated with urban life, are
beginni ng to make an impression on men and women. When the migrant
family comes to the village, the men and women in the house are
filling the eyes of others. As the society is liberated from the bondage of
caste, free relations between men and women have been created.
Inter -caste marriage: -
Many of those who have migrated to this cause have done inter - caste
marriages. All of this could have happened in civilian life or in the city.
The villagers have accepted them, even though there is no other breed or
nephew. Immigrant -family relationships in the village are not completely
broken. Some of their family members live in the village.
Love Marriage: -
With the influx of civic life, many people have started to leave the village
for various reasons. Being in touch wi th the immigrant family has created
a new kind of transformative feeling among the villagers as the bonds
of intimacy are created. If immigrants can intermarry, then why not marry
in your caste? As this attitude continues to grow, many young people in
rural society are starting to marry and settle in the city.
Check your progress: -
Explain the effects of migration.

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60 6.9 MIGRATION MEASURES
Controlling population growth:
Family planning is an important tool for population planning. Similar
programs of family planning in rural areas need to be implemented
effectively. Reducing people's ignorance of traditional old and outdated
beliefs by creating awareness of social responsibility is important thing.
Providing counselling regarding family planning in a publi c health centre
can prevent such migration by limiting the size of the family if such
measures are taken.
Large size of the family leads to starvation of the family due to lack of
control over population growth in rural areas. People in rural areas depend
on agriculture. Due to population growth, agriculture is becoming
fragmented. So there is no option but to relocate people to fill their
stomachs. Malnourished children are born with starvation. Population
should be controlled to stop this.
Use of Natural Resources in Rural Areas: -
Migrating employment through rural villages, cottage industries, process
industries savings groups can be prevented from migrating from rural
areas to cities by utilizing the natural resources available in various forms
such as land, forest, livestock, sunlight in rural areas.
Agricultural Improvements: -
To inspire local farmers for the advanced and advanced agriculture
business through traditional and advanced agribusiness, Agricultural
Science Centre, University of Agriculture , Department of Agriculture,
Government of Maharashtra and Panchayat Samiti, Department of
Agriculture should provide special emphasis on the management of
agricultural production and income of the farmers. This will increase the
purchasing power of the ru ral areas and reduce the flow of migration.
Strive to achieve a high standard of living. Increasing the literacy rate,
Reducing child mortality and maternal mortality, Inadequate health
facilities and concessions must be provided by providing health facili ties.
Social Improvement: -
In a developing country like India, the need for social change is acute. As
the caste -changing classes are organized, the traditions of the society are
striving to break free from this social bondage and to live with free
though t, so the need to differentiate between different social environments
becomes justified.
Development and dissemination of education: -
If people in rural areas are literate they will easily use modern techniques
and techniques in rural areas. Education will help you to develop yourself.
Starting your own business using technology can have financial benefits.
The dissemination of basic technical education will benefit the people to
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61 Social Value Change: -
Urban and rural communi ties differ in social rooms. New generations of
rural people are ready to embrace new values. Social values are preserved
in cities. Therefore, they tend to migrate. Migration to the city can be
prevented if social value is taken up in rural areas.
Improvi ng the quality of labour: -
Local skills are often lacking to meet the many needs arising in rural
areas. Rural labour should be encouraged to settle it. They should be given
agricultural training. If the skills are developed within them, the migration
to the city will be somewhat hampered.
Youth Counselling: -
Appointment of trained and expert officers for the administrative needs of
the rural areas through the government or various social organizations as
the officers of the urban areas will promote devel opment and the youth
from rural areas who have settled in the city will be attracted to the rural
areas again. This will help the overall development of the rural areas. In
the same way, problems can be solved by training the youth in the rural
areas. If s uch counselling is given and trained to rural youth, they will not
have to migrate for employment or employment.
Implementation of Government Scheme Effectively: -
Although the government's attitude towards the overall development of
rural areas is positiv e, many schemes have not yet been followed in rural
areas.
Under the 'Our Village Our Development' scheme, five percent of the
village funds were deposited in the Gram Panchayat's account, and
through these funds, the villagers' committees could work on th e work of
the village villagers for health, public sanitation, clean drinking water,
education, roads, tree conservation, and digitalization of schools. For this,
with the proper guidance and training of committees and integration of the
village, one can generate employment in the village itself.
Under the 'Mahatma Gandhi Rural Employment Guarantee' scheme, the
work can be made available to everyone in the village and they can
stop the migration of the rural population by getting suitable wages.
Proper deve lopment of grants, house rent, market tax expenditure through
financing will be done in the village. This will hinder migration. Mahatma
Gandhi's aim of development of villages will be successful by getting all
the work and the right price. For this, the s cheme should be disseminated.
That is, government plans should be properly propagated and
disseminated. Government schemes should be implemented effectively.
Providing loan at discounted rate: -
Rural areas are heavily cultivated. Raw materials produced in agriculture
are available. The industry needs capital for business. If the need for munotes.in

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62 money is made available to the agricultural sector, small enterprises will
emerge. Various experiments can be done in the field to generate capital
through skill training . With the use of modern tools, agricultural
production can be increased and the cost will be better yielded. As a
result, the migration will stop. The food will not be crushed. Chains of
work will be created in the rural areas and everyone will get work. For
this, a loan should be made available at a discounted rate.
Establishment of Co-operative Societies and Organizations: -
In the rural areas, there are inexpensive grain shops to supply food grains
to the needy people in order to take restraints and co ntrol over private
traders. But private traders do trade in large quantities. Due to this, the
poor are being sold at lower prices in the open market. The poor do not get
the food they deserve. Therefore, it has to be purchased at a higher price
from the merchant at the private shop.
Low production and high cost are cheating in the village. There is no
means of production in the summer. Therefore, proper planning rights,
justice, etc. should be implemented effectively in the rural areas. Strict
adherence to the rules and regulations is imperative on this working class.
This will solve the problem of hunger and malnutrition.
Check your progress
1. Explain the solution to migration.
6.10 SUMMARY
In the presented case study the concept of migration, the effects of
migration on rural and urban society, factors of migration, various
causes and trends of citizen rural migration, study of rural citizen
migration trend. Along with this plan, various measures have been studied
to prevent migration.
6.11 QUESTION SET
1. Explain the concept of migration.
2. Describe the type of migration.
3. Explain the factors affecting migration.
4. Explain the reasons for the migration.
5. Explain trends in urban rural migration.
6. Explain the trends in rural urban migration.
7. Explain the effects of migr ation.
8. give the measures to stop the migration.
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63 6.12 REFERENCE BOOK
1. B. V. Ragavender, Migration - Causes, Consequences and Problems,
Abhijit Publication, New Delhi, 2004.
2. Prof Ahir Rao And Others -Population Policy Nirali Prakashan Pune
3. Prof Vittal Sonetakke and Prof Dev Rao Manwar – Economic Growth
and Development, Sheth Publication Mumbai 400004



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64 7
RURAL POVERTY
Unit Structure :
7.0 Objectives
7.1 Poverty Concept
7.2 Definition of Poverty
7.3 Measurement of Poverty
7.4 Types of Poverty
7.5 Causes of Poverty
7.6 Consequences of Poverty
7.7 Remedial Measures of Poverty Alleviation
7.8 Summary
7.9 Question Set
7.10 Reference
7.0 OBJECTIVES
After reading this chapter, you will understand the following.
1) Concept of Poverty
2) Types of Poverty
3) Causes and consequences of Poverty
4) Remedial Measures of Poverty Alleviation
7.1 INTRODUCTION
Over one -third of the w orld's poor are living in India, the second -most
populated nation in the world. As per the estimation of Planning
Commission, 34.78% of people in rural areas lived in poverty in 2009 –
2010, or 54.12 percent of the population. Members from socially
backward communities of scheduled castes and tribes have the greatest
levels of poverty in rural areas. Even though they make up a significantly
smaller portion of the overall rural population, in 2005 these groups
represented 80% of the poor in rural areas. More t han 80 crore people are
rural poor from which 22 crore people, or one -fourth of village residents,
are considered to be below the poverty level. Further, 27% of the world's
poor people reside in India. As compared to other countries, despite munotes.in

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65 population gro wth, India has been successful in lowering the percentage of
the poor people in the country.
It impacted scale economies, stable public services, and a variety of other
advantages, including sizable markets that support enterprises, education,
and innovati on. For many years, the world has experienced a surge in
urbanisation. Urbanization is taking place everywhere with the
advancement of technology and rapid increase in population. The
urbanisation has provided improved growth, possible food supply and
other advantageous aspects which is helpful to create job opportunities to
youth at large. Even though India is rapidly urbanising, a sizable chunk of
the population still resides in rural areas. In India, where there are urban
slums and other locations with r apid population expansion, this is a major
problem. These changes are advantageous in the long run; they have also
brought about a few negative effects. Due to financial crisis and enough
supply of funds, the majority of localities are overwhelming cities that
don't have the necessary infrastructure and municipal organisations to
handle the growing issues as a result of the population's unusually rapid
growth.
Over 60% of the workforce is employed by agriculture and allied sectors
in rural India, which pr ovide 33% of the country's GDP. Indian economy
is based on farming section but the small farmers make up a sizable
portion of India's rural poverty since they have small land holdings. The
family's fundamental necessities cannot be met by the modest amount of
revenue from these small land holdings, nor can it be used to repay the
loans taken out for household and agricultural purposes. In addition,
drought and other natural disasters are the causes that impacted the life of
people and making them poorer tha n earlier that force people to take
drastic measures.
Farmers are totally dependent on monsoon for their production which
sometimes irregular or more than enough that causes the loss of
agricultural production. Grain production in the country is now self -
sufficient due to new agricultural techniques that include the use of
genetically modified seeds, double cropping, alternative and advanced
methods of farming and expansion of farmland. Unit output keeps rising
due to ongoing improvements in farming method s, but despite this
amazing achievement, the country has not yet been completely protected
from the effects of drought and diminishing water supplies. Subsistence
farming and occasionally raising cattle are essential to their livelihood.
The availability of land for agriculture per person has continuously
decreased due to the population's rapid increase and the lack of alternative
work opportunities, causing land holdings to become more dispersed. It
impacted for the migration of poor farmers to nearby cit ies in search of
work. Additionally, a sizable portion of India's urban poor are primarily
the surplus of the country's rural poor, who move to metropolitan regions
in quest of work and a way of life. All of these people have not been able
to be absorbed b y industrialization. The urban poor either lack
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66 workers are among the most vulnerable members of society since they
lack assets, job security, skills, opportunities, and excess to suppo rt them.
It causes the high poverty rates among them.
Poverty is further exacerbated by underemployment or unemployment as
well as the casual and sporadic nature of work in both rural and urban
locations, which forces debt. Being in debt is one of the mai n causes of
poverty. The misery and suffering of lower income groups are made worse
by a sharp increase in the price of food grains and other vital products at a
pace higher than the price of luxury goods. Though the drastic changes are
occurred due to adv ancement and use of technology in farming, the poor
people in villages, have not seen the promised improvement in their lives
despite the rural sector's contribution to the country's economic success.
India faces a variety of challenges related to poverty, many of which
require a warlike approach.
7.3 DEFINITION
• Poverty can be defined as the lack of sufficient income to purchase the
bare needs for existence of the family.

• Poverty is the absence of the resources and needs needed to maintain a
minimal stand ard of living.

• When the income from employment is insufficient to cover basic
needs, that person is said to be living in poverty.

• Poverty indicators are inequality in income, illiteracy, malnutrition and
access to water and sanitation.

• Families and peop le living in poverty may not have access to suitable
shelter, clean water to drink, wholesome food, or medical care.

7.4 MEASUREMENT OF POVERTY
The continuance of poverty in India is also a result of the unequal
distribution of income and assets. In India, th e gap between the rich and
the poor has expanded over time. Those who own the means of production
and make decent livings can be considered as rich whereas those who
must rely only on the sale of their labour in order to survive may be
considered as poor. A rural household with a yearly income of less than
Rs. 11,000 is considered a poor household by the Integrated Rural
Development Programme (IRDP) Index of the Ministry of Rural
Development in May 1991. The multidimensional poverty index is based
on three dimensions — health, education, and standard of living. The
other aspects for poverty index measurement includes the level of
nutrition, drinking water, housing, assets, power consumption, finance in
hand, level of education, school attendance and sanitat ion.
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67 Four categories of Poor people as per poverty Index is given below.
 Destitute (with an income of less than Rs. 4,001 per year,
 Extremely poor (with an income between Rs. 4,001 and Rs. 6,000
per year),
 Very poor (with an income between Rs. 6,001 and Rs. 8,500 per
year), and
 Poor (with an income between Rs. 8,501 and Rs. 11,000 per annum).
More over one -third of the world's poor people live in India whereas
Bangladesh, Pakistan and Africa suburban countries are considered to be
very p oor countries where the next major concentration of poverty is
found. However, Dadabhai Nairobi in the second half of 19th century
calculated the first estimate of a poverty line in history.
He concluded that there was a subsistence -based poverty limit a t prices in
1867 –1868. The basic food like dal, rice, vegetable oil and other eatables
were sold by British on high price range and they earned profit and
generated high income resources from India and send the profit to Britain
and drain the Indian market .
The National Planning Committee (NPC), headed by Jawaharlal Nehru
supported by Subhash Chandra Bose, the president of the Congress, in
1938 drafted the economic plan for the development of standard of living
ensuring a sufficient quality of life of Indi an people to save the national
poverty level. It estimated sufficient income per month to Indian families
and the government provided the financial support for education and
health of Indian families followed by the Government committee report to
determine the food consumption level of the people where it was
recommended that the people who consume less than 2500 calories in
rural regions may be considered as poor people. Discrimination between
rural and urban areas was justified by the fact that rural resi dents do more
physically demanding jobs and the government would look after the
citizens' health and education. Thus, the Chairman YK Alagh finally
established India's first poverty line. However, The Lakdawala Committee
in 1993 defines a poor person as on e who is unable to meet their average
energy needs. The earlier measurement of Poverty Index was measuring
per capita income of the family and working on the assumption that the
health and education needs of Indian people were supported by the
government.
Then very recent Committee for Suresh Tendulkar in 2005 by the
Planning Commission of India expanded the definition of poverty by
taking into account monthly expenditures on transportation, electricity,
and health care. It was further recommended to focus on nutritional
outcomes, i.e., intake nutrition rather than calories for both rural and urban
areas for adoption of the same Poverty Basket Line. Tendulkar chose to
define poverty on the basis of the cost of living. The Tendulkar panel
determined that 22% of the population should be considered below the
poverty line by setting a baseline daily per capita spending of Rs. 27 in
rural regions and Rs. 33 in urban areas, respectively. However, because munotes.in

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68 this sum was so small, it instantly drew criticism from all facets of the
media and society. The government formed a new committee headed by
C. Rangarajan, chairman of the Prime Minister's Economic Advisory
Council, to review the technique for estimating poverty because the
figures were exaggerated and too low. The se thresholds were increased by
the Rangarajan Committee to Rs. 32 and Rs. 47, respectively, and a
poverty line estimate of nearly 30% was made. Poverty was estimated by
the Rangarajan Committee to have been over 30% in 2011 –12. In 2011 –
12, 36.3 crore peop le were considered to be impoverished in India.
7.5 POVERTY: CONCEPT AND TYPES
There are various ways to determine the type of poverty based on social,
economic, and political aspects:
1. Absolute (Extreme) poverty
2. Generational poverty
3. Relative poverty.
4. Situa tional poverty
5. Rural poverty.
6. Urban poverty

1. Absolute poverty: Absolute poverty is often referred to as extreme
poverty is characterized by a lack of access to necessities including
healthy food, clean water, education, and shelter. A complete lack of
resources, including unstable access to food, is referred to as absolute
poverty. People who live in absolute poverty frequently struggle to
survive and lose many children due to malnutrition and impure water and
unhygienic diseases like malaria and choler a. On this criterion it was
possible to compare the level of poverty index between nations.

2. Generational Poverty : This poverty is a part of life for those who have
born in poor family in generation to generation. Hence it is referred as
generational p overty. This poverty can be overcome due to tremendous
efforts to of earnings. But it is also difficult to move out this poverty since
family members are more to feed and mentality is not so positive to
overcome it. Since the family members frequently live in stressful life, the
generation cycle of poverty is very challenging to break.

3. Relative Poverty: Relative Poverty is the measurement of standard of
living in relation to the economic standards of the local population. It is
average income disparity in purchase capacity, spending on leisure or
gifting or enjoyment. In comparison to others you are spending little to
maintain standard of living. It is more related to spending to fulfill
emotional needs of an individual.

The number of population with in come below a predetermined percentage
of the average income is typically used to calculate relative poverty. It is
widely used as indicator to measure poverty rates in countries.
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69 4. Situational Poverty : It is situation based poverty often arises due to
sudden loss of the source of income. Loosing job is the reason behind such
poverty or in case of women; it may be due to separation of income from
husband due to divorce or other reasons like sudden spending on health
issue to save lives of family member. It is economic instability that causes
such type of poverty. It also depends on economic loss in business
temporarily. Many people have likely encountered situational poverty.
You might have been financially insecure due to a job loss, a divorce, or
perhap s a health issue. This has happened to a lot of families throughout
the epidemic, particularly those who work in private sectors. Since this is
temporary kind of poverty, it can be overcome by the financial support
from others.
5. Rural poverty: Rural pov erty is due to lack of job opportunities in rural
villages to progress further or create income sources. There is no access to
generate income or having income generation facilities in a remote village
areas where no access of transport or government schem es. Most people
are choosing to rely on farming and other related jobs that are accessible
in their area in order to survive. So there is no scope for income
generation.

6. Urban poverty: Urban poverty is a problem in very populated cities
where opportu nities are available but access is not provided to variety of
reasons. Due to over population, competition is more for a single job, such
poverty takes place. Due to competition there is limited access to
education and healthcare and demand becomes heavy that causes high
prices of the commodity and services and housing are inadequate. Due
over crowded cities sometimes unpleasant situation occurs that impact the
safety regulations and services.

7.6 POVERTY: CAUSES
Poor infrastructure that impedes growth and movement is frequently a
cause of rural poverty. Roads that might improve access to agricultural
supplies and markets are typically insufficient in rural areas. Without
roads, the impoverished in rural areas are cut off from developing markets
and tech nical advancement in more urban places.
• Inadequate source of Income - Another factor that amplifies the impact
of poverty in the nation is unemployment. In India, more than 75% of
population don't have a consistent source of income. If they are having
jobs, insufficient wages are paid to them. Since there is no other source of
income rather than agriculture in villages, employment opportunities are
less which prevents them from obtaining better -paying work. This is
largely due to the illiteracy and lack of skill education required for
agriculture related jobs among the poor.
• Poor Agricultural Infrastructure - For a long time, India's economy was
based primarily on agriculture. Agriculture continues to be the primary
source of income for the vast majorit y of the nation's citizens. However,
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70 supply of fertilizer cause low productivity, and result in low income
impacted low income generation.
• Overpopulation: India is second largest highly populated country in the
world. It causes high rate of poverty that put burden on government
initiatives to minimize poverty index. The country's rising population is
the main contributor to the country's terrible poverty. There has been no
improvement in the state of poverty as a result of it outpacing national
economic growth. Growing family sizes result in lower per capita income
and thus lower living standards. Since the income is very low as compared
to family size, India is facing tremendous poverty in poor families.
• Inequality in life essentials: There is a significant gap between the rich
and the poor when it comes to the allocation of assets like land and wealth.
Since income sources are limited, and high and moderate income groups
are seeing an increase in their salaries, the poor are being denied all of
life's essentials. There are no opportunities to increase their income.
7.7 POVERTY: SOCIAL CAUSES
• The Caste system - The caste systems existed in India, separated and
marginalize specific grou ps in society and are a major contributor to the
spread of poverty. Certain social groups in India are denied from their
rights and basic necessities including food, water, and shelter as a result of
the caste system. Due to such systems, they are unable t o get higher job
opportunities leading to higher salaries which is the main source of
income generation and improve standard of living.
• Education and illiteracy - In India, poverty is largely caused by a lack of
education. The unemployment rate and pov erty levels rise as a result of
the rise in illiteracy rates. However, the poor are unable to afford to send
their children to school due to a lack of resources. Some poor people view
schooling as unnecessary. They would rather have their children work and
help support the family financially than send them to school. For someone
to be financially sustainable, education is crucial. The skill education can
build various skills for maximum job opportunities. But the opportunities
for skill education are not mu ch.
• Corruption: Despite the government's significant attempts to provide
financial support and job opportunities to poor people , there is extreme
corruption in the system due to which the schemes are not reached to poor.
So their status is not improved as only little aid really reaches the poor
recipients. Poor people can receive opportunity only on giving bribe to the
officers to get adequate support.
• Gender Discrimination - Because India is primarily a patriarchal society,
women face discrimination . Women are paid low wages than males for the
same work. Women experience poverty as a result of discrimination in
salaries, admission to universities, and job possibilities. Women are not
provided opportunities of learning through higher education opportu nities.
The traditional families deny their right of education. They compel to stop
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71 married. Hence they are not allowed to get higher education in remote
villages.
• Lack of job oriented training facilities: There is enough labour force
available in the country but they are not provided proper job oriented
training facilities. Skill training is an essential part of every resource to
grow. Since skilled labour is not available there are n ot improvements in
quality of work. Even if the government has established a number of
initiatives to train the unskilled labour force, some sectors of the poor are
still unaware of these programmes and should be given access to them.
• Lack of Efforts: Pe ople rely on support instead of doing efforts of their
own to earn. Individual inaction also plays a significant role in the rise in
poverty rates. Some people are apathetic and unwilling to put in much
effort. Due to a lack of personal effort, these peop le are poor. They do not
search opportunities to increase their income. They enjoy what and how
they are living. Since there are not much efforts of their own, they are
unable to improve their financial conditions. They do not try to generate
their own res ources to meet their fundamental demands.
7.8 POVERTY: CONSEQUENCES

Every member of family is impacted by the poverty. The poverty affects
the education, sanitation, health and social life of an individual. It affects
the standard of living and life style . The poverty in India has terrible
repercussions on both the individual and their family.

The following are the main effects:

1. Health Impact

People who live in poverty lack access to enough food, sufficient clothing,
high-quality healthcare, and san itary conditions.

Larger families with little finances often struggle to provide enough
nourishing food for their children. Big family size in poor family, impacts
the children most as they suffer through malnutrition. Malnutrition is the
most prominent h ealth problem brought on by poverty. All age groups in
the nation are affected by the problem of malnutrition, but children are the
ones that suffer the most from it. Due to non availability of enough food,
the children experience serious health issues inc lude low body weight, low
vision, mental and physical impairments, as well as a general lack of
immunity that leaves them vulnerable to illness. The food problem may
invite various diseases in the children including diseases caused by impure
water and hear t disease too. Poor health results from the absence of all
essential amenities. Such people, together with their families, experience
malnutrition and disease, which shorten their working weeks and increase
their poverty levels. It also causes high infant mortality rates due to
malnutrition and many other diseases. The recent health status of the
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72 2. Social Effects:
• Violence and crime rates – Due to tremendous stress and lack of
enough money in hand, poor people frequently engage in bad habits
including prostitution, stealing, and criminal activity like chain snatching
due to unemployment and marginalization. They need to fulfill their own
hidden desires of lavish life. When they are unable to do it, they suffer
through tremendous mental instability that may compel them to do crime
to have enough money in hand.

• Child labour: The head of the family is not generating much income
,then other members of the family including his wife and children perf orm
job for income generation. This increase the child labour. Because they
cannot afford to send their kids to school, poor people are forced to send
them to work. Children in low -income families only begin to earn money
on average when they are 5 -7 years old. These females and children are
employed in prostitution, factories, quarries, farms, and other non -school
settings. Sometimes they are offered some more money to involve in
terrorism and they are easily trapped to perform such activities.

• Lacks of education – The children are involved in child labour
activities. In search of job opportunities, the poor families are migrating
from place to place and work whatever sits them. There are no job choices
available to them. So their children are not able to go to school hence they
miss the education facilities and remain illiterate. The boys are begging at
the road side and females enter in prostitution field. Females are offered
low paid jobs or paid unequal wages for the same work performed by the
male la bour despite the fact that women and men must be treated equally
under Indian law. Due to their lack of education, they are not receiving
the higher paid job opportunities.

• Homelessness – Poverty leads to proper home availability to poor.
The poor who do not have enough money becomes homeless in urban
areas and suffer through tremendous stress. They take shelter at road side
and live in dangerous situation. Sometimes they beg for money and
decides for crime like stealing or snatching. Their entire life become
helpless and they loose control and involve in crime.

• Mental Stress - Lack of money causes poor people to experience a
great deal of stress, which lowers personal productivity and makes poor
people even impoverished. They stress level so increase d compel them
behave abnormally and attract them towards unethical things. If the mental
stress is not handled properly they turn them in big criminals.

• Drug Addiction and crime: Drug is not accepted socially but poor
people are addicted to drugs for mi nimum amount of money. They are
indulge in socially inappropriate behaviour including drug addiction,
crime and violence. To get money they are involved in such activities by
the other criminals. These forces weaken social norms, moral principles,
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73 community exhibit intolerance and disrespectful behaviour toward one
another on a regular basis.

• Illegal Marriages: Some poor families in Indian communities sell
their daughters to old age male f or their marriage to receive enough
money. These male compel the girls before she get adult, to give birth to
their child in her early age so that they sell the male child earn profit. The
poor parents agree to get daughter marriage in the hope that she w ill get
better life as they fed up with the poverty.

• Political Support: Many politicians support the poverty in their area
to keep the their voters uneducated so that they can purchase their vote in
minimum rates. Since they are uneducated, they are unaw are of their
rights and they will be easily manipulated by the politicians. When a
group of people lacks resources, they are dependent on the politicians for
their day to day needs. Since they are not educated they are unable to get
good job and there is a lack of access to healthcare and other facilities,
there is low productivity, and there is illiteracy.

• Human exploitation: - When government institutions fail to defend
the rights of the poor, it leads to parents selling their children into slavery
or prostitution because they cannot afford to feed or care for them. The
living conditions of the poor are appalling, and some family members of
these people pass away from famine or hunger. The poor are being
exploited by others. They are not given rights an d respects in the society.
They are often caught by the police for the unknown crime they never
committed.
3. Impact on the Economy
A country's level of poverty is a clear indicator of how well its economy is
doing. The percentage of the population that l ives below the poverty line
tells us whether the economy is strong enough to create enough jobs and
amenities for its citizens. Through various programs the government is
supporting the poor where they are budgeting to maximum finance
through various schem es of removal of poverty. It makes heavy burden of
the budget of the government to run the schemes for the welfare of the
poor and the needy. The health of the economy is directly correlated with
the level of poverty. How capable the economy is reflected i n how many
people live in poverty. An economy grows when more individuals are
employed productively.
7.9 REMEDIAL MEASURES FOR POVERTY
ALLEVIATION

Government of India programmes aimed at eradicating extreme
poverty:

In accordance with the UNDP's 2030 Ag enda, all kinds and dimensions of
poverty, including severe poverty, must be eradicated from all the nations. munotes.in

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74 The 17 Sustainable Development Goals in this Agenda are intended to
"End poverty in all its manifestations everywhere by 2030." According to
India 's ten -year success in reducing poverty, it will be able to eradicate
extreme poverty by 2030. The Sustainable Development Goal will be
achieved.

a) Gram Kaushal Deen Dayal Upadhyay Yojana (DDUGKY)
To alleviate the pain of poverty, the Deen Dayal Upadhyay Gr am Kaushal
Yojana (DDUGKY) was created. With the help of this programme, young
people in rural areas get the ability to work and earn money on a regular
basis. It's a beneficial programme for the underprivileged in India that
provides appropriate training. Such kind of programs can be implemented
positively throughout the nation.
b) Skill India or Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
On July 16, 2015, the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) or
Skill India programme was introduced to eradicate p overty.

c) Package under the Pradhan Mantri Garib Kalyan Yojana
(PMGKY)
This poor welfare programme has been implemented to eradicate poverty
from the lives of oppressed people. Members of Parliament are the
primary drivers behind the government's eff orts to highlight the plight of
the impoverished. The government approved this programme in 2020
during the COVID -19 epidemic to aid the underprivileged and make sure
they have access to necessities without difficulty. Overall, 75 –80 crore
people will bene fit from this programme by receiving 5 kg of their choice
of rice or wheat and 1 kg of pulses. The government even granted 50 Lakh
Life insurance to ensure the safety of our frontline healthcare
professionals.

d) Pradhan Mantri Jan Arogya Yojana or the Ayush man Bharat
Scheme
The National Health Protection Scheme, often known as Ayushman
Bharat Yojana, was introduced on April 14, 2018. The central government
places a priority on the health of low -income households and on providing
them with medical benef its. In accordance with this programme, all
secondary and the majority of tertiary care operations will be provided
cashless at all government and private empanelled institutions nationwide
for about ten crore low -income families with insurance coverage of Rs. 5
lakh annually.
The following actions should be performed in India to combat the demon
of poverty:
1. Opportunities in agriculture based employment:
Another crucial way to end poverty in the nation is through creating non -
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75 processing, transportation, construction, sales, and marketing, among
others. Such opportunities must be provided to poor people.
2. Ensuring that everyone has access to necessities:
To end poverty, it is imper ative that everyone has access to necessities,
especially in rural areas. Poor individuals will be able to work hard and
escape poverty if they have access to food, safe drinking water, and
housing. They should be made aware of their rights and importance of
their improvements. They should be provided every possible opportunity
to increase their earnings.
3. Increasing agricultural revenue:
Since agriculture continues to be the primary source of income for the
majority of the population in the nation, incr easing agricultural income
will undoubtedly lift many people out of poverty. In this sense, the
government should plan to maximize the income of poor people and offer
them opportunities to double their income.
4. Women's education:
In order to end poverty , the government should look after the women
education. If a woman is educated, she will have good job opportunities
and develop her family. The women education will make changes as
expected by the Government. It will be helpful for nation building as the
percentage of women is nearly equal to men in India.
5. Arrangement to establish their own business:
Young people who are entrepreneurial will be able to launch enterprises
and create jobs for others. There are various skills in poor people. One
needs t o find out the skills from them and provide every possible
opportunity for improvements. Such skills can be utilized by the
government for their welfare. The introduction of women -focused loan
facilities by banks is one such initiative. Through various sch emes for
welfare of the women like Stree Shakti Yojana, Annapurna Yojana should
be provided. The women are made aware of such opportunities vide these
schemes.
6. Rural Development:
The rural development is crucial for the development of country. The
government should make as much efforts for the rural development. It
involves the development of agriculture and its related industries. It will
provide the job opportunities to rural people that may be helpful to
eradicate the poverty among rural people si nce the status of rural poverty
is crucial in the development of the nation. More employment will be
created and more tax income will be collected by the government as the
economy grows faster. The government can then utilize the funds to
combat poverty d irectly by implementing our policies for doing so and
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76 India has about 800 million people classified as poor, the majority of them
reside in rural areas and make ends meet by working odd jobs. A large
number of Indians are being drawn into rapidly urbanising cities like
Mumbai due to the lack of economic opportunities that provide a living
salary in the majority of rural areas where there is insufficient access to
clean water, garbage disposal, power, and other basic ameniti es. The
consequences of poverty are really severe. Additionally, poverty in India
primarily has an impact on children, families, and individuals in a variety
of various ways, such as: HIV/AIDS; high infant mortality; malnutrition;
child labour; lack of edu cation; child marriage and poor facilities of basic
sanitation. The diseases affected the life of children and others too.
Extreme poverty is one of the largest concerns in the world and not just a
depressing situation. Some of the effects include:
• The m alnutrition is one of the major concern in India.

 The poverty also hampers the number of school going children which
is decreasing day by day due to parents' inabil ity to pay for their
education.

• The poverty is an obstacle to the nation's economic devel opment as it
troubles the manpower and labour force of the country.

• A high newborn mortality rate due to underweight suffer from both
mental and physical disabilities as a result of insufficient medical
resources.

 The extreme pove rty and unemployment cause domestic violence in
the family that impacted the high stress level among family members.

 The poverty also caused the increase amount in diseases linked to poor
hygiene and diet, impacted the high death rate in poor fam ilies.

 Due to extreme poverty there is an increase in the number of people
living on the streets putting extra pressure on government efforts.

7.10 POVERTY: ACTIONS TO REDUCE POVERTY

Economic Development: Economic development is necessary and crucial
to end poverty which is possible only due to progress of our nation on the
basis of agriculture development, use of man power and labour and use o f
natural resources tactfully. Since the Indian economy is based on
agricultural development, India needs to concentrate to develop
agriculture and its related trades and jobs. Agriculture needs to be
developed for economic growth. The modern technology can be used to
improve the quality and quantity of production. Agriculture can provide
every possible opportun ity to its workers and improve their quality of life.
While the growth of small -scale and heavy industries should help to
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Rural Poverty
77 Year Plans have placed a strong focus on the development of agri culture
as a means of eradicating poverty. Restoration of cottage industries and
small -scale businesses is necessary to strengthen the foundation of rural
economies.

Educational development: Education needs to be more career -focused.
All educational insti tutions should implement practical and skill education
like carpentry, agriculture, animal husbandry, poultry and other vocational
skills etc. The educated youth will therefore be able to support themselves
independently and contribute to the economy as a whole rather than
relying on the government or the county for employment. It will benefit to
improve their income level and poverty can be controlled.

Monitor population increase: First Indian government should make all
possible efforts to control the po pulation of the nation which is rapidly
increasing. The heavy population is the main obstacle for the growth of
the country and impacted poverty level. The family planning or family
welfare programme should be successfully implemented in this regard.
This programme needs to be publicized, and every effort should be made
to make it widely available. In addition, the marriageable age should be
increased, and those with modest families should receive benefits. The
economic growth of the country will benefit from this restraint on
population expansion. The government should include financial assistance
to those who face economic disability, such as pension for senior citizen
and widow. It can organize free training program for those who are
interested to learn the skills. The government can provide unemployment
assistance, medical assistance, sickness insurance and job security for its
labour. By such provisions, those people will be able to earn instead of
being dependent.

Removing personal limitations : To co ntrol various diseases, the
government can organize public health programmes and rehabilitation of
physically handicapped people and help them in case they are suffering
from personal disabilities, such as chronic illness, physical impairment,
and mental i llnesses. Government should provide facilities like adequate
and free health services to rural poor. Every possible opportunity should
be provided by the government to eradicate poverty and income
generation among the poor and needy in order to enable thes e handicapped
people to earn their own livelihood in this regard.

The government can utilize the services of poor and needy in government
project for road development, tree plantation and making dams etc so that
they can earn their own living. The young g eneration can concentrate to
spread literacy among the non literate and try to teach them basis literacy
where Government can also facilitates the same and motivate the young
generation.

The Indian government has implemented numerous programmes to
eradic ate poverty since gaining its freedom. To combat widespread
poverty, the Indian government has developed an anti -poverty programme. munotes.in

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Emerging Issues in Rural Development
78 Raising every household over the poverty line is thought to be the fastest
way to eradicate poverty within ten years.

To this goal, the government has established the following programmes.
a. Strengthen and broaden the scope of the National Rural Employment
Program (NREP) and Integrated Rural Development (IRDP)
b. Promoting family planning program as a social movement.
c. Industrial development is necessary to offer job opportunities to
poor and needy to eradicate their poverty.
d. Distribution of recovered land and other surplus lands to the
landless, especially backward classes and adivasis.
e. To provide loan facili ties with the job opportunity to the poor by
reinvesting all rural resources in rural development.
f. Development in small industries in small towns and rural areas to
offer job opportunities.
g. Maximizing the use of all available resources to increase th e
efficiency of public companies.
h. To help rural residents earn a living and stop being a burden on
society, the government should establish comprehensive social
security measures.

Ensuring that rural residents participate fully in government program s and
are involved in development programmes is essential for eradicating rural
poverty. Their interests and skills should be considered while developing
programmes and projects.

It is important to enhance the Panchayati raj institutions so they can
manag e rural development democratically at the district and block levels.
Road building, tree maintenance, and adult education programmes should
all be prioritized by Panchayats. Small -scale and cottage industries should
be established to offer job opportuniti es. Social awareness programs
should be implemented for the benefit of poor and needy.

In conclusion, our development is hampered not by a lack of materials or
expertise, but rather by a lack of political will and steadfastness of
purpose. Planning must take into account the fact that poverty is an effect,
not a cause. Eliminating poverty is not just a matter of economic
improvement or the program of poverty eradication. It is also a social and
political issue connected to the general public's socio -political
understanding.

Check your progress
1. Explain the causes and consequences of poverty.
2. Explain the role of Government to eradicate poverty.
3. Define poverty and actions to reduce poverty.
4. Explain measures to poverty alleviation. munotes.in

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79 7.11 SUMMARY
Poverty is a serious social issue. The government of our nation has made
the battle against poverty one of its top priorities. One of the goals of our
five-year plans is to start the direct action against poverty. The elimination
of poverty and raising the majori ty of Indians above the poverty line are
now the main priorities for the Indian government. Several steps must be
made in order to address the issue of poverty.
7.12 REFERENCES
1. "Ending Poverty" . United Nations. Archived from the original on 9
September 2020. Retrieved 22 September 2020.
2. Jump up to:a b "Poverty | United Nations Educational, Scientific and
Cultural Organization" . www.unesco.org. Archived from the original
on 9 December 2019. Retrieved 4 November 2015.
3. Roser, Max; Ortiz -Ospina, Esteban (1 January 2019). "Global Extreme
Poverty" . Our World in Data . Archived from the original on 30 March
2021. Retrieved 30 March 2021.
4. "Fragile and Conflict -Affected Countries and Situations" , The World
Bank Group A to Z 2016, The World Bank, pp. 60a–62, 7 October
2015, doi:10.1596/978 -1-4648 -0484 -7_fragile_ and_conflict_ affected ,
ISBN 978-1-4648 -0484 -7, retrieved 2 January 2022
5. B. Milanovic, Global Inequality: A New Approach for the Age of
Globalization (Harvard Univ. Press, 2016).
6. dpicampaigns. "Goal 1: End poverty in all its forms everywhere" .
United Nations Sustainable Development. Retrieved 9 October 2021.
7. Skeat, Walter (2005). An Etymological Dictiona ry of the English
Language. Dover Publications. ISBN 978-0-486-44052 -1.
8. "Indicators of Poverty & Hunger" (PDF). United Nations. Archived
(PDF) from the original on 28 June 2011. Retrieved 16 January 2022.


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80 8
NEW ECONOMIC POLICIES AND ITS
IMPACT
Unit Structure :
8.0 Purpose
8.1 Preface
8.2 New monetary policy
8.3 Privatization
8.4 Liberalization
8.5 Globalization
8.6 Summary
8.7 Question Set
8.8 Reference Books
8.0 PURPOSE
After reading this chapter, you will understand the following.
1. Understand the concept of India's new economic policy.
2. Understand the meaning of privatization.
3. The meaning of liberalization can be considered.
4. The impact of globalization on the Indian economy can be understood.
8.1 PREFACE
Until 1991, when the country's economic development, the socialist
approach was adopted. Priority was given to the country's economy for
economic development by giving priority to the social sector. However,
the constructive changes in the economy have been accepted in our
country since 1991, on account of the collapse of the Russian economy
and the influence of the Western countries, the pursuit of public
enterprises and the advance of capitalism. With this, new economic
reforms began. The then Prime Minister Shri P.V. Narasimha Rao,
Finance Minister Manmohan Singh has brought about widespread
improvement in the Indian economy. It also adopted a new industrial
policy.
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81 8.2 NEW MONETARY POLICY
At the end of the twentieth century and the beginning of the 21st
centur y, the Indian economy underwent major changes. In 1991, the then
Prime Minister P.V. Narasimharao, Union Finance Minister Dr.
Manmohan Singh accepts 'Gat' deal (GAAT - General Agreement on Trade
and Tariff) representing free economy.
The present agreement g ives India a new identity. By adopting open and
liberal monetary policy, India adopted open market policy. It is a fact that
in the present scenario it is impossible for the country to abstain from the
process of globalization. Today, the process of global ization is universal.
The combination of information and technology has accelerated this
process. In a country like India one cannot deny the fact that there are
many limitations in the agriculture and customs business due to the
traditionalist attitude, ignorance, illiteracy, lack of capital.
At the time of the adoption of the new monetary policy in 1991, the
country's economy was in dire straits. The central government had
suspended many of its financial plans. India had a big mountain of foreign
debt. Th e alien gangway was near. A new fiscal policy was adopted to
relieve such financial distress. In 1991 a new monetary policy was
announced to strengthen fiscal policy. It was decided at this time that the
industry in the country would be conducive to busine ss development and
achieve technological progress. The financial policy was adopted with the
main objective of facing international competition. The proposed financial
policy included the following main topic.
Acceptance of Free Economy: -
The adoption of a free economy assumes the declaration of new economic
policy and industrial policy. Was the first step towards globalization.
Abandonment of financial policy before: -
Before 1991, the Indian economy was in a mixed state. The government
was committed to the development of the public sector industry while
adopting pre-planned economic development. The presented policies have
a period with the new monetary policy.
Acceptance of supplementary principles: -
In the new economic policy, globalization of nutrient s and supplements,
while the privatization of such private sectors, is an important part of the
open economy, the policy of privatization of public enterprises was
adopted with maximum flexibility for the private industry.
Acceptance of membership of the WTO: -
In 1991, India signed the GAAT agreement and agreed to globalization.
India accepted the founding membership of the World Trade Organization.
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82 Alternatively, the country had to accep t international trade restrictions.
Privatization: -
Running the process of privatization is part of fiscal policy. The policy
was adopted to adopt special discounts and generous financial policies to
boost private enterprises. It was also decided to promo te the privatization
of public enterprises.
Liberalization: -
According to the policy presented, private enterprises were encouraged in
the financial sector by eliminating restrictions and restrictions on private
industry.
Reduction in import tax: -
As par t of the World Trade Organization's strategic policy, import cuts
were considered compulsory for all Member States. India has also made
changes to the import tax accordingly. As a result, foreign goods are
coming in large quantities in the Indian market.
Increase in the scope of foreign capital investment: -
Due to the increase in the limit of foreign capital investment by the
Government of India, a large number of foreign capitalists are investing in
the country. The Indian industry is becoming more compet itive with
multinationals investing in India.
Changes in agriculture: -
Due to the new monetary policy, the field of agriculture has been opened
for foreign investment. Due to this, agricultural products from many
countries are coming up for sale in our ma rkets. At the same time, foreign
markets are also being made available to our country's agriculture.
At the same time, according to the policy presented, the condition of
deduction in agricultural subsidy has been laid down according to the
criteria of the World Trade Organization. Alternatively, India has also
decided to do so.
Freeing up of service sector foreign investment: -
According to the WTO norms, the service sector has been conditioned to
open up foreign investment. India has also opened many areas of banking
business,insurance companies, telecommunication services, miscellaneous
tools to the member states.
Thus many topics have been included in the new monetary policy.
Arrangements are in place as per this policy.
Check your progress: -
1. What are the topics covered in the new monetary policy? munotes.in

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83 8.3 PRIVATIZATION
After the independence of the country, efforts are being made for
economic development through the Five Year Plan. The main objective
was the ad option of a mixed economy in the Five Year Plan till 1990.
Alternatively, the public sector was given special importance. However,
the performance of the public sector, the lower the return on investment,
the lower the national savings. Inadequate utilizat ion of production
capacity, recruitment of additional workers, lack of decision making due
to bureaucracy, delays in implementation, inadequate use of resources
were steadily increasing. Alternatively there was a hope of privatization in
the new monetary p olicy. The decision was taken to further expand the
scope of privatization. "Privatization is the only solution to the public
sector."
Extending the scope of privatization includes industrial licensing policy,
import export policy, technological developmen t, reduction of government
inquiry restrictions, easing of financial and administrative control methods,
etc.
8.3.1 Concepts of Privatization: -
1. "Privatization is the process of extracting government capital from the
public sector industry". - Peter Drucker.
2. Privatization is a solution to the problem in the public sector. That is,
privatization involves the process of opening the private sector to the
private sector, as well as the process of transferring ownership and
control of the private sector industry to the private sector industry.
3. "Privatization is the general process of investing the private sector in
ownership. If it is to look at the arrangement of state-owned
enterprises, then the term refers to the purchase or partial acquisition
of all companies privately. This includes the acquisition of industry
and the privatization of management." Management contract, leasing
or free to operate This arrangement is medium ". - Barbara Lee and
John Nellis
4. "Privatization is the transfer of ownership or control, espec ially from
the government to the private level" - Dictionary
From the above definition it can be explained that privatization involves
the following.
1. Improving public enterprises through private intervention.
2. To develop the production and sales system through private industry
3. To develop the economy through the private sector.
4. To give public sector rights to the private sector.
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Emerging Issues in Rural Development
84 6. Reducing taxation restrictions on the private sector.
7. Privatizat ion, etc., is the process of hesitation in the public sector.
India adopted Maruti Udyog Ltd., C.M.C., Denzing Corp., Gas Authority
Ltd., IBP, I.P.C.L.,ONGC. Decided to disinvest in many such industries.
Disinvestment has had a mixed effect on the country' s financial system.
Disinvestment has led to a large increase in the private sector in the
country.
Check your progress: -
1. What is privatization?
8.4 GLOBALIZATION
The expansion of the country's economic affairs is globalization. The
expansion should be do ne in such a way that the economies of different
countries of the world should be freely interconnected. This policy, which
has been emphasized on globalization, has begun to adopt the use of
market mechanisms on the one hand and the reduction of governmen t
interference and control on the other side, giving more and more exposure
to the private sector, reducing international and international trade
restrictions, etc. In the national -international and political spheres, the
term globalization has become para lyzed. Globalization is the key to the
new monetary policy.
8.4.1 Concepts of Globalization: -
1. Globalization is the increasing interdependence of countries around the
world with the increasing volume of goods and services and international
capital flows, and the increasing technology of diffusion.
- International Monetary Fund
2. Globalization means
(A) Gradually repealing the import restrictions on all commodities,
including consumables.
(B) To reduce the rate of import duty.
(C) privatization of public sector activities.
- The World Bank
3. A global economy is a group of diverse economies. In which different
programs interact with each other in different ways and thus change their
attitudes over time.
- Professor C T Kurian
4. Globalization is the transformation that is taking place in all sectors
such as trade, finance, employment, technology, communication,
migration, living, environment, governance, social order, culture.
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New Economic Policies and Its Impact
85 From the above definition the meaning of globalization can be explained
as follows.
1. Globalization means integr ating the economies of different countries
of the world in a new way.
2. Globalization is the process of bringing together many countries of the
First and Third World internationally at the economic, social and
political levels.
3. Globalization means expanding the scope of business and providing
new opportunities for the production and marketing of goods from
around the world.
4. The consolidation is the removal of the protective barriers on free
trade investment in the country.
5. Globalization means broad thinking o f the entire global community
and forming a policy consistent with that thinking process.
6. Globalization is the concept used in the context of an economic
transaction or economy. Globalization is the attempt to open the
country's economy and connect it to t he global economy.
7. Globalization seeks to link the local economy to the global economy.
8. Globalization refers to the ownership of finance and capital, the open
market system, research, technology, modernization, the consciousness
of all the countries of the world, political affiliation and the ability and
management of global rules.
The Government of India has mainly taken the following steps to
accelerate the process of globalization.
1. Reduction in import duty on raw materials.
2. Liberalization of imports.
3. Reduction in import duty on capital goods.
4. Assistance in obtaining quality goods overseas market.
5. Facilities and Concessions to Trade and Industry Companies
6. Establishment of Agricultural Export Department.
7. Creation of export processing department.
8. Creation of Special Economic Zones.
9. Increase in export trade houses.
10. Deduction of agricultural sector financing.
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Emerging Issues in Rural Development
86 12. Limit to the development of the public sector sector.
13. Priority to the Private Sector.
14. Preference for foreign capital investment.
Check your progress: -
1. Explain the concept of socialization.
2. What steps has the Government of India taken to mobilize?
Globalization Impact on Indian Economy: -
Most countries in the world have embraced globalization. Of course, this
was inevitable. In the next section, we will study the favourable impact of
globalization on India.
1. Globalization has inspired the economic development of the Indian
economy. While competing with companies around the world, India is
steadily advancing to build self-sufficiency in new technology and
science, production and financial systems.
2. The revolutionary changes in the telecommunications sector are
facilitating the process of approaching the world. India is also
benefiting from the new innovations and technologies in different
countries.
3. Due to globalization, many multinational companies have moved to
countries like India. Due to the sophisticated technology these
companies have, the resources are being utilized efficiently for the
purpose of product sales and management. Therefore, it is possible to
make optimal use of production capacity.
4. The employment of skilled workers and technicians is increasing as
new technologies are used in the globalization process.
5. Globalization has created a competitive environment in the
entrepreneurial sector as the industries of many countries have come to
India. Alternatively, there is support for increasing entrepreneurial
quality. Customers also benefit from the competitive environment in
the market. In addition, th e choice of goods becomes available.
6. Due to the development and expansion of the market in the process of
mobilization, Indian industries are also providing the market in other
countries. Dependency on a particular country has declined.
7. Large scale industr ialization benefits the employment generation. This
in turn helps improve living standards.
8. The geographical distance between countries has led to a reduction in
the process of globalization, which has led to the exchange of culture.
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New Economic Policies and Its Impact
87 9. Globalization has deprived the monopoly of many industries.
Production of durable and consumable goods has increase
Adverse Impact of Globalization: -
The favourable consequences of globalization as well as adverse effects
can be seen as follows
(1) Public sector constraints: -
Due to globalization, the public sector is getting a lot of trouble.
Alternatively, many problems arise when such industries are scrapped or
closed, such as labor cuts, voluntary retirement. This is making the social
environment turbulent.
(2) Impact on Public Administration:
Globalization is affecting democracy. In the health sector, there is also
hesitation in the public service sector. After independence, the government
had adopted the concept of welfare state. Many plans were being
implemented in that directio n. The current strategic decision has created
the possibility of hindering the welfare state concept.
(3) The possibility of ignoring social justice: -
The Indian Constitution promises social justice. But the new monetary
policy hinders social justice. Profit from privatization is the ultimate goal.
Entrepreneurs do not appear to be playing the role of trustee. The
development of weaker, weaker sections of society has slowed
development.
(4) Promoting unrest in the working class.
It was an optimism that globalizati on would create huge jobs. But
although employment is created in certain areas, there are huge
employment problems in the agricultural sector in rural areas. Such
instances of labour deduction and voluntariness create unrest in the
society. The alternative is to say that workers are not protected.
(5) Negative results on Indian farmers.
The agricultural sector has also been affected by globalization. Indian
farmers are largely smallholder. It is ridiculous to say that he will survive
in the competition of the world as he does subsistence farming. As
commodities are opened for import, the prices of farmers' goods fall into
the market. This is a matter of routine. Farmers' problems are getting
serious due to reduction in farm subsidies.
(6) Marketing of Education: -
The education sector is also not exempt from the globalization process.
Education is being commercialized. Due to the privatization of the
education system, poor and middle class students are being deprived of
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Emerging Issues in Rural Development
88 Keeping money as the ultimate goal in education is disrupting the social
system.
(7) Regardless of the moral values of Indian culture: -
The high moral values of Indian culture are disappearing in the process of
globalization. The current picture is the loss of moral values and the rise
of goodness. There is an increasing number of people who use immoral
ways to make money. Alternatively, India's highest ideal culture is
disappearing.
(8) Increase in financial disparity: -
In the process of globali zation and privatization, the wealth of wealthy
entrepreneurs is increasing. As a result, economic inequality is increasing.
In a country like India, the proportion of millions of entrepreneurs has
increased, but the poverty line has not decreased. The valley of poverty
and wealth is steadily increasing. The problems of health, lack of
education, malnutrition and addiction are increasing among the rural and
poor.
(9) Impact on Rural Youth: -
Globalization seems to have more impact on rural youth. A large number
of youths are migrating from the countryside to the city. As the city offers
factory and job opportunities, young people are seen migrating to a larger
town or city for work. Due to this, there is loss of family together in the
village. The city is growin g in population. The villages are getting wet.
The bullying system, rural handicraft businesses are disappearing. As the
individual's sense of freedom is being created among the youth, the people
in the family together are shifting from the limits of freed om to the young
city of the village. Urban charm is growing among them. As a result,
young people are moving to the city despite their own farms and houses.
So farming is becoming neglected.
(10) Impact of agriculture sector contribution to national income: -
Due to globalization, information technology based services sector is
booming. But at the same time, agriculture and small scale industries have
been adversely affected. The contribution of agriculture sector to national
income is declining. Employment gene ration has fallen and the situation
of the poor is getting worse. The economic disparity has increased
drastically. The capital investment and technical cooperation of the foreign
industry group is on the rise.
Inflation is increasing due to the closure or reduction of concessions and
subsidies for essential goods and services.
(11) The influence of Western culture is increasing.
Through globalization and information technology, Western culture is
under attack and its widespread acceptance is on the rise. Tradi tional
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New Economic Policies and Its Impact
89 becoming extinct because of the excesses of personal freedom. Together
the family system is replaced by a separate family system. The caste
system has been replaced by the caste system. The status of each person is
based on his wealth. It is a good thing that the equality of women and men
is on the rise.
(12) Impact on Rural Environment: -
Foreign tourists have helped to gain foreign currency. For their
convenience, our beach, our forest, mountains are being furnished. It is
damaging the environment. Western culture has many impacts on rural
society. Our natural landscapes The freedom of our villagers is changing
their values, life -style. Locals are being displaced. Only the independent
existence of rural life is being destroyed.
The adverse effects of globalization as seen above can be seen in a
developing country like India.
8.5 SUMMARY
The concept of LPG gained great importance at the end of the twentieth
century and the beginning of the 21 st century. The country was beginning
to move towards socialist society as the country was developing through
five-year plans after independence. We were dreaming of the concept of a
welfare state. However, the financial crisis that hit the country in 1990 ,
the increased loss of public sector enterprises, the pressure of
international institutions and powerful nations like the United States to
bring our economy to L.P.G. accepting the concept became compulsory..
In 1991, Under the leadership of the former P rime Minister of India, P.V.
Narasimha Rao, and the Finance Minister Dr. Manmohan Singh, new
economic policies were adopted. Part of the new economic policy is the
adoption of privatization, liberalization and globalization.
In the presented cases, we have studied the favourable and adverse effects
of privatization, liberalization and globalization on the Indian economy.
8.6 QUESTION SET
1. What is the main topic covered in the new monetary policy? Explain
the favourable and adverse effects of privatization on the economy.
3. Explain the concept of liberalization.
4. Explain the definition of globalization and explain the favourable and
adverse effects of globalization on the Indian economy.
5. Explain the concept of globalization and explain the adverse effects of
globalization.

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90 8.7 REFERENCES
1) K.M Bhosle and K.B. Kate – Commercial Environment, Phadke
Prakashan, Kolhapur 2009
2) Dr. G.N Jhamre –Development and Environmental Economics,
Pimpalapure and Publishers, Nagpur 2005
3) Indian Planning and Development, K Sagar Publication ,2015
4) Desai and Bhale Rao-Indian Economic System, Nirali Prakashan Pune

❖❖❖❖ 

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91 9
IMPACT ON AGRICULTURAL SECTOR
AND RURAL ARTISANS
Unit Structure :
9.0 Objectives
9.1 Preface
9.2 Favourable effects of globalisation on Agricultural Area
9.3 Adverse effects of globalisation on Agricultural Area
9.4 Summary
9.5 Self study
9.6 Reference Books
9.0 OBJECTIVES
After reading this chapter, the following things are known to us. To study
the effects of Globalisation, privatization and liberalization on Indian
agricultural area.
9.1 PREFACE
In this chapter we will study the impact of globalisation , privatization and
liberalization of new economic policies on Indian Agricultural sector and
peasants. Globalisation is the process of integrating economies of
different countries of the first and third world into the context of society
economic and polit ical relations. In the relevant process, the scope of
business is going to be wider. The entrepreneurs will find the world as the
area for production and marketing of goods. Deliberate efforts will be
made to remove problem and hurdles of trade in the coun tries. World is
said to be a market place.
Globalisation has become an irreplaceable end to the economic, social,
order of all the nations of the world. Globalisation is a state in which
national boundary lines, economic and cultural division and continent al
isolation become faint. Globalisation is the process of becoming a free
market. Globalisation has brought the world closer. The world has become
a global village.
In the post independence period, a developing country like India adopted
the mix economy b y considering the social conditions of the country. By
balancing the public and private industries and by controlling the
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92 and entrepreneurs in times of trouble. In short, continuous efforts have
been made to embody the concept of welfare state.
In 1990 -91, the four decade shift of the Indian economy was broken. Then
Prime Minister P. V. Narsinmha Rao and Union Finance Minister Dr.
Manmohan Singh signed the agreement representing globalisation and free
economy and opened the way of the world’s main stream access. India
was recognized as one of the 137 nations co -operating with world trade
organization (W.T.O.)
The finan cial system of the 20th century goes beyond the boundaries of
these factors to producers and consumers. The trend of modern industries
is seen globally. America is the leading country in the process of
globalisation. The high technology in the united sta tes has made it
possible. In spite of this, there is no doubt that countries in Asia and
Europe are ready for competition.
In that period globalisation was inevitable. India could not and should not
be separated from this process. This process had a huge i mpact on the
Indian Industry and market. After the liberalization many big industries
and foreign managements have entered in India. Lipton, Hindustan Liver,
Brook Bond, Colgate, Pepsicola, thums up have created network in India.
These are multi national c ompanies (MNCs). They have dominated the
market by advertising, attractive covers and various temptations. From
America, England, Germany, France, Canada etc. many companies have
settled in our country. The country like China has gained market of many
comm odities. It is an easy matter to have its impact on Indian business.
In the context of global competition developed countries, undeveloped
countries, countries under development do not see the similarities required
for competition. There are limitations fo r India in competing with
developed countries. It was not possible to get away from the process of
globalisation. The process of globalisation has become public. The
combination of information and technology has accelerated this process.
There is no denyin g the fact that a country like India has many limitations
on the flow of globalisation in the agricultural business due to the
conservative attitude, illiteracy and lack of capital. Globalisation has had
favourable and adverse effect on many sectors of the country. However,
in a country like India, the consequences of farming are serious. Due to
poverty, lack of capital, illiteracy, barriers in accepting technology,
inequality, limitation for irrigation, globalisation benefits are limited to
farmers.
9.2 FAVOURABLE EFFECTS OF GLOBALISATION ON
AGRICULTURAL SECTORS
FARMERS WILL HAVE THE ABILITY TO FACE
COMPETITION
The prosperity of farmers will increase as they get better price of
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93 econom y will be strong and the ability to face competition will grow
among the farmers. Globalisation creates a favourable environment for the
development of the country and for faster crop.
FARMERS WILL BECOME SELF RELIANT
Due to the welfare and mixed economy, various concessions to farmers,
grants, subsidy, loans with small rate of interest have made agriculture
sectors better. Free monetary policy, limits these discounts, farmers,
artisans will become self reliant. They will work harder.
Farmers, craftsmen, local artists, professionals will establish a connection
with the wider world. Thus instead of narrow vision, entrepreneurship will
develop in them. There will be positive changes in the economy of the
country by increasing fellow spirit.
IMPROVEMENT IN FARM ING TECHNIQUE
Due to globalisation many changes have been made in agriculture. Indian
farmers have begun adopting improved farming techniques in other
countries. e. g. Japan, Israil and California. Improved implements for
farm, chemical fertilizers, hybrid seeds and various methods of cultivation
are being followed by Indian farmers. Quality fertilizers, seeds, medicines
will be easily available from MNCs developed by patent claims from
advanced nations.
SUPPLEMENTARY BUSINESS GROWTH RELATED TO
AGRICULTURAL BUSINESS
Globalisation is not only aimed at increasing the production of food
grains but also aims to boost the complementary businesses related to this
business. This has helped to improve the economic condition of the
farmers. For example, dairy, farmin g, poultry, mushroom cultivation etc.
businesses are prospering. Some other businesses have been also started
region wise.
EMPLOYMENT OPPORTUNITIES
Liberalisation - Free monetary policy will boost India’s foreign
investment. Industry will develop, taxes wi ll increase and employment
creation will be promoted.
Various experiments in the agricultural sector at the local level have given
the people greater employment opportunities. Increasing the member of
crops a year, the processing of agricultural raw materi als etc. have led to
the work of more and more people.
MOTIVATING EXPORT OF PRODUCTS
Hybrid seeds have been used expensively. Total agricultural production
has stared to increase. After fulfilling the needs of the people of the
country, the remaining produ cts are being exported. As a result, India’s
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94 MOTIVATING RURAL INDUSTRIALISATION
In order to process the goods produced by the agribusiness, small and
large business group are being formed at the village level. Due t o this
small and cottage industries are being developed. Handmade goods are
being manufactured by machines. The dairy business, vehicle repair, fruit
process have been motivated.
INCREASE IN IRRIGATION FACILITIES
There has been an increase in irrigation fa cilities recently. Lift irrigation
schemes are implemented in many places. Due to this the uncultivated
farmlands are coming under cultivation. Medium and large sized water
supply projects are being implemented in the villages as they are being
used for ag riculture in summer. Due to the large supply of water to
agriculture, production has increased. Like Israel, green house and
computer farming has also started in India. In countries such as Israel,
only 6 inches of rain is received but the water is stored and irrigated
throughout the year. Indians have also adopted these techniques. Less
space, less cost, less labour but maximum production is given by ‘green
house scheme’. This green house scheme has reached the villages in India.
INCREASE IN FINANCING FACI LITIES
Globally enough financing has been started. Loans are beginning to be
available at reasonable interest rates. The net of small and large financial
institution is spreading all over. Foreign aid agencies have reached the
villages. The terms and condi tions of loan availability are relaxed. The
illiterate farmers have also begun to improve agriculture by picking up
large debts.
INCREASE IN RESEARCH IN AGRICULTURAL FIELD
Traditional kinds of fruits and flowers have been decided to be outdated.
Hybrid see ds are used in farming. They are giving huge income. Which
kinds of fruits (seeds) are better? Traditional or Hybrid? Research is
going on. In case of rice crop, which is profitable among R.R.8, Sonam,
Roopali, Ek kadi and Indrayani? Research and experimen ts are being
done. Research is also being made regarding hybrid seeds and live stock
or animal husbandry on large scale. Research is made in agriculture
universities about new kinds of seed of crops, fruits and flowers. For
example, research is being done to compare cashew nuts -Vengurla No.1
to Vengurla No. 7. They are deciding which number is better. Seedless
grapes, lemons, mangoes are also the subjects of the research.
INCREASE IN TRAINING FACILITIES
The subjects of agricultural studies are being incorp orated in schools and
colleges. Farmer’s camps, workshop etc. are being organised. Special
emphasis has been given to demonstration of methods and results in the
field of agribusiness. Farmers have been being instructed on how to
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95 GROWTH IN THE FARM -PRODUCTS PROCESSING INDUSTRY
Different foods are being prepared by fruit processing. Modak, barfi,
chocolate, pedhe from cashew seeds, mango jelly, mango pickle, mango
sarbat etc. from mangoes, awala supari, awala mava, awala sarbat etc.
from awala have huge demand not only from India but also from other
countries.
MOTIVATION TO DEVELOPMENT PROCESS
The process of globalisation is motivating the economic development of
all the countries of the world. Many developing countries of the world
have begun to embark on science and technology without the pressure of
advanced nations. This thing has motivated the economic development.
SUPPLY OF CAPITAL
Multi -national companies are spreading rapidly in globalisation. These
comp anies are concentrating on structural facilities, permanent investment
and development of business and trade. These companies bring new
technology with development. Thus developing countries with lack of
capital are getting benefitted.
MOTIVATION FOR INTER NATIONAL TRADE
Globalisation policy motivates international trade in huge proportion.
Export trade increases. Increasing export motivates development. Foreign
currency obtained from export is useful for development of country.
EFFECTIVE USE OF CAPACITY TO PRODUCE
Due to the process of globalisation, perfect use of production capacity is
possible. Products from many countries are available in market. So there is
always a competition. Therefore one has to increase capacity. The perfect
use of capacity is the only solution to be in the competitions.
Globalisation effects made some favourable changes in farming career.
Still some adverse effects are there.
Check your progress
1. Write favourable effects of Globalisation on agricultural Area.
9.3 ADVERSE EFFECTS OF GLOBALISATION ON
AGRICULTURAL SECTOR
Indian agricultural sectors have been influenced by globalisation. Its main
reason is that world trade organization has in their agreement included the
agriculture sector. That means agriculture sector is open to foreign
relations. Poor farmers have to face this adverse effect because of open
import. Indian farmers have got the opportunity to participate in foreign
trade. But they are not capable to take advantage of it, as they are ignorant,
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96 The impact of the deduction of subsidies in the agricultural sector and the
effects of open competition are not new in the state like Maharashtra. Poor
farmers are facing serious consequences, continuous rising indebtedness
and the increasing suicides of farmers are in Maharashtra.
With globalisation, unemployment is increasing with increasing
mechanization. The agriculture sector has to deal with a consistent,
seasonal and small unemployment. The problem of unskilled labour is
becoming serious.
Although the use of new technology increases, productivity, there are
problems in maintaining productivity in the long run and consistently.
Ownership of commodity products, can be benefitted to handful of people.
The average farmer can not even reach such competition.
The farmers do not have the technology to use them to service in a
competitive era. Thus the poor farmer cannot get proper price of their
products.
Adverse effects of globalisation can be explained as follows.
BLIND IMITATION OF WESTERN CULTU RE
There have been radical changes in the farmers in the rural areas. Many
farmers have become experimental. Instead of the traditional food like
onion and bread (in Marathi Bhakari) etc. the present farmer is making a
living by taking fast food and chines e food. Farmers are imitation in
terms of hair styles, costumes, cold drinks etc. This means that the
farmers of India are blindly imitating the western culture. Some of these
things have an adverse effect on them. Globalisation affects costumes,
music, ea ting, drinking, life style, life values.
EFFECT ON PRODUCTIVITY OF FARMLAND
Due to the use of chemical fertilizers or manures in the farmlands, several
crops method, the farmlands are becoming infertile and unproductive. For
example, sugarcane crops are ta ken continuously and therefore the
farmlands are becoming khar lands or salty lands. Because of ‘Cultar’, the
life of mango trees has decreased. Germicides have also adverse
effects. Many MNCs create and control supply seeds, pesticides etc. They
also blin d the farmers and advice them to cultivate or sow the crop advised
by them (MNCs). In these circumstances, there is doubt about the
farmer’s existence. Their self -containment is destroyed in this way.
mechanization of farming causes unemployment.
DECREASE IN EMPLOYMENT CAPACITY
Though there is an increase in business, due to the use of machines,
craftsmen have not sufficient work to do. Those, who have the skill of
running the machine, can get work, others won’t. Due to tractor, bullock
cart has no work. Fo r transport, there are tempos, railways and by ships, so
the problem of livestock arises. Power machine alone can do the work of
many workers. So the workers are workless. They have to migrate. All
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97 INCREASE IN BANKRUPTCY
For increasing new production and business, the farmers are taking a debt
or loan. That is their habit now -a-days. If they can not get out the debt,
they can do the suicide. Many under developed and developed countries
are taking debt or loan from world bank. It is impossible fro them to
pay the loan / debt. Therefore, growth in debt is always there. India also
in this position.
PROBLEMS OF OWNERSHIP OF AGRICULTURAL PRODUCTS
Ownership regarding certain products had raised question. For example,
instead of giving Indian farmers patent of turmeric and rice, America has
claimed on it. But this claim has been rejected by court.
DECREASE IN THE COST OF FORM -PRODUCTS
Many products of the same type are being sent for sale in the market. As a
result, supply has become more than demand. For example, the prices of
milk, dairy products, vehicles etc. Those farmers who are unable to
produce good quality products are unable to sell their products.
INCREASE IN LUXURY ATTITUDE
Luxury attitude has increased in rural farmers. Income and expenses are
not matching. Inappropriate expenses are increased. For example,
marriages, religious programmes.
So far, there are s ome limitations to the agricultural businesss, but due to
globalisation, the Indian farmer s could get a new direction in the field of
agriculture.
Globalisation has led to the creation of the things which are delicious and
costly. Unhealthy habits are increasing rather than increasing the country’s
infrastructure. Regardless of the development of the majority of the
population, the consideration of the originally rich people is happening in
the process of globalisation.
RESPONSIBILITY OF GLOBALISATION ON ONLY RICH
COUNTRIES
Globalisation is the re-structuring of a developed nation’s economy. It is
an experiment by a country like united states to maintain its grip on
world’s economy. It is not deeply considered that what effect can be there
on other countries, especially backward and developing countries. There is
a class of people in our country with such on opinion.
LOSS OF RESOURCE OF WEALTH
Due to globalisation process, the resource wealth is being greatly reduced.
There is a loss of bio -diversity with forest resources. Reducing natural
resources have an adverse effect on the human life and agr iculture area. In
the process of globalisation, it is necessary to take responsibility for the
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98 VALLEY OF INEQUALITY IS WIDENING
In the process of globalis ation, the rich are getting richer and poor are
getting poorer. The fruits of globalisation are not found in developing
countries compared to these in advanced countries. The fact that poor,
small and marginal landowners and farm labours are not getting the
benefit of large farmers in the agricultural sector. Critics also think that
globalisation may be a form of new colonialism.
In all these processes a country like India needs to be ready to raise the
standard of living of the poorest of the poor in the country by harnessing
the resources and power of natural resources through the science
technology and management.
9.4 SUMMARY
Globalisation was an indispensible factor in India. Most countries in world
have adopted it. It has favourable and adverse effects on many sectors.
The consequences on agricultural sectors are more serious. Basically, due
to the lack of capital, illiteracy, poverty the farmers are getting less
benefits of globalisation. Though globalization can have adverse effects
on agriculture, it is still inevitable. Indian agriculture has great potential
for production. Globalisation has given direction for farmers.
Considering that agriculture is a business if the potential for systematic
study of the market is developed. Thus the favourable outcome of the
globalisation can be obtained.
9.5 SELF STUDY
1) Explain favourable effects of globalisation on agriculture sector.
2) Explain adverse effect of globalisation on agriculture sector.
9.6 REFERENCE BOOKS
1) Vitthal Sontakke – Arthik Vrudhhi ani Vikas, Seth Prakasha n,
Mumbai, 2012.
2) Dilip Arjun – Jagtikikaran, Udarikaran, Khajagikarnachya Bhartiy
Arthvyavasthevaril Parinam lekh-yojana, Feb. 2007.
3) D.V.Pawar – Gramin Arthvyavasthevaril Jagatikikaran ani
udarikarnache Parinam (lekh), Kirti College, Masik 2008.
4) Shivajirao Akolkar – Jagtikikaranacha Shetivaril Parinam, Aprakashit
Tipani.
5) Padmakar Dubhashi – Jagtikikaran, Udarikaran ani Arthkaran, Shri
Vidya Publication, Pune, 2006
6) Bhosale -Kate – Vyavasayik Paryavaran, Phadke Publication, 2009
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99 10
CAPITALIST CLASSES IN BANKING AND
MARKETING
Unit Structure :
10.0 Objectives
10.1 Concepts of the Bank
10.2 Bank Business Stages in India
10.3 Design of Indian Bank System
10.4 Banks in rural areas of India
10.5 Works by NABARD on agricultural and rural development
10.6 Private banks' participation and performance in rural areas
10.7 Application of new technology in the rural banking sector of India
10.8 Banks in India
10.9 Capital market segment shocks
10.10 Summary
10.11 Question Set
10.12 Reference Book
10.0 OBJECTIVES
After reading this chapter, you will understand the following.
1) The concept of bank can be studied.
2) The banking business in India can be studied.
3) The structure of the Bank of India can be studied.
4) Banks in India can be accessed in rural areas.
5) The work done by NABARD on agriculture and rural development can
be studied.
6) Private banks in India can be studied in rural areas.
7) Capitalist class market penetration can be studied.
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100 10.1 CONCEPTS OF BANK
The commercial bank business in India started fr om the beginning of the
nineteenth century. Due to the British rule over India, the operation of
commercial bank business in India was started on the basis of bank
business in England. Employees of East India Company started
commercial bank business in India. Such banks were called 'agency
houses'.
Bank business has existed since time immemorial. As the social and
economic changes in the world have changed, the functioning of banks
has changed. The word bank is a word that comes from the Italian word
Bancu, Banque, Banco. The meaning of the word is Seating on bench'. In
Italy, Jews used to sit on the street benches in the city of Lombardy to
borrow money. He used to exchange coins. Modern banks conduct similar
transactions. So the word Bank comes from the wo rd Banco.
Economist Macaulay Land has analyzed the etymology of the term bank in
his book Elements of Banking. According to him, after the establishment
of the 'Bank of Venice' in Italy in the Middle Ages, in 1171, the authorities
of Venice took loans from citizens to cover the costs of war. His
repayment was arranged. Such a loan was called 'monte' in the Italian
language. Due to Germany's dominance in most parts of Italy, the word
'bank' was coined in this word. It was transformed into an Italian called
'banko'. In France and England, the same words were used a little
differently in that language.
Definition: -
1) "An organization that accepts deposits for repayment of loans by the
people, either immediately or on a deadline. It facilitates checks, drafts
and other means for withdrawal of deposits. The institution is a bank."
The Banking Company Act of 1949.
2) "A bank is an organization whose mechanisms have received wide
acceptance in the mutual search of others," Prof. Seyas
3) "The bank that sends the check left over to the customer's current
account and who deposits money in the form of current deposits from
people in their daily practice and allows them to withdraw the money
through check."
Dr. Herbert L. Hart
4) "The bank is the person or organization that accept s deposits of the
people to be withdrawn by demand."
Walter Leaf

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101 10.2 STAGES OF BANK SYSTEM IN INDIA
The history of bank business in India is very ancient and since Vedic
times, India was dealing with interest. But not much is known about this
business. When the British came to India, there were no banks in
India. So the lending business is going big. The British, however, began to
experience difficulties in India because of their habit of bank business.
Even the lender was not familiar with the English trade system. So in
order to get rid of this problem, in the eighteenth century, the British
agency started a Calcutta and Mumbai bank business. This is how the
banking business started in India. It’s stages were as follows .
Presidency (Area) Bank: -
Establ ishment of three banks in Mumbai, Madras and Calcutta is an
important event in the banking sector. Bank of Calcutta was established in
1906. Bank of Bombay was founded in 1840. The Bank of Madras was
founded in 1843.

These banks were specially regulated by the Residency Bank Act, 1876.
These banks should not conduct foreign exchange transactions and
provide loans for more than six months. Their right to remove notes was
taken away. These controls continued until 1921


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102 Joint Capital Bank: -
The Bank of Al lahabad was established in India for a period of five years
from 1865 to 1870. In the early nineteenth century in India, the bank
business grew exponentially. Due to the indigenous movement of India,
the banking business of India was established by banks o f India, Bank of
Baroda, Central Bank of India, Bank of Mysore, etc. Punjab National
Bank was established in India in 1894. In 1909, the People's Bank of India
was established.
Imperial Bank: -
Imperial Bank of India was formed in 1921 with the unification of
Residency Bank in India. Imperial Bank was entrusted with some tasks
that the central bank had to do. Later, on May 1, 1955, the same bank was
nationalized and converted into State Bank of India. State Bank of India
has branches across India, cities an d rural areas and is an important bank
providing loans to rural areas of India.
Establishment of Reserve Bank: -
The role of the Reserve Bank in India is very important. The Hilton Young
Commission was appointed in 1926 to look into the currency situation in
India. The Commission recommended that the Central Bank be set up as
soon as possible after examining the situation in India. This
recommendation was approved by the Central Banking Inquiry
Committee. Accordingly, the Reserve Bank of India Act was passe d in
1933 and the Reserve Bank was established on April 1, 1935. The bank
has the monopoly on printing paper currency. In addition, the
responsibility of coordination and growth in the banking sector of India
was entrusted. On January 1, 1949, the Reserve Bank was nationalized.
As a result, it was fully owned by the central government. Following the
central government's denomination decision of December 8, 2016, the
Reserve Bank had been entrusted with the responsibility of printing new
currency notes of Rs . 2000 and Rs 500 in 2017. It was also entrusted with
the responsibility of distributing the printed notes to the major banks.
Check your progress: -
1. Explain the stages of bank business in India during the pre -
independence period.
10.3 DESIGN OF INDIAN BANK SYSTEM
Banks perform a variety of functions. But each bank has its own
specialties. Banks are classified according to their function and
specialization. The various bank systems in India can be structured
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103 Commercial Banks: -
These types of banks are most commonly found in the total number of
banks. All kinds of people belong to these banks. The name of the
business bank is clear from its name. The main function of commercial
banks is to accept deposits from people and to make short term loans. The
capital of these banks is derived from deposits accepted by the people.
Therefore, they cannot use the money taken in the form of a deposit as a
long-term loan. People make short -term deposits with the bank. Merchan ts
need such short -term loans to overcome urgent problems in their
businesses.
Industrial Banks: -
The banks which provide credit to the industries are called industrial
banks. But they are short -term loans. Industry projects need these long
term loans for the purchase of land for the factory, construction of
buildings, purchase of heavy industry materials, purchase of raw materials
etc. Banks are mainly responsible for providing such loans to industry
projects.
Agricultural banks: -
Agricultural banks are responsible for providing loans to farmers in the
agricultural business. Considering the constraints on the supply of
agricultural loans, other banks are not very keen on providing credit to
agriculture, taking advantage of it. The bank provides short, med ium and
long term loans to farmers. Industrial banks cannot provide loans for
agriculture.
Co-operative Banks: -
The bank operates on the principle of cooperative movement. Co -
operative banks are established on a democratic basis for that particular
purpo se. In India, co -operative banks have spread from village to city. Co -
operative banks offer short, medium and long term loans to farmers.
Central Bank: -
The central bank is the focal point of the banking system in the country.
Central banks do not have f inancial goals like other banks, but the central
banks do this to make the government's financial policy successful and to
control the transactions of the country's banks. The first central bank was
established in India in 1935 under the name 'Reserve Bank of India'. The
bank plays a double role as the bank of the government and the bank of the
banks. Apart from this, the central bank does the printing of notes,
controlling credit, controlling foreign exchange. In a country there is only
one central bank.
Savings Bank: -
These banks collect deposits from the people. These banks receive
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104
the habit of saving money. For example, postal banks are net savings
banks.
Exchange Bank: -
Although the functioning of the exchange bank is limited, it has gained
importance as it differs from the functioning of other banks.
Exchange banks carry out the financing activities required for foreign
trade. There are branches of these banks in each country.
Investment Bank: -
The birth and development of these types of banks is mainly in the United
States of America.
Composite Bank: -
The business of composite banks is to set up new business ventures and to
support already established industries. These banks were established in
Germany in 1853.
The structure of the bank system in India can be explained by the
following table.
Design of bank system in India
Reserve Bank of India
Suggested Bank Scheduled Bank

Commercial bank Co-operative banks Co-operative banks

Commercial banks
Public sector banks Private sector banks
State Bank of India National Banks Regional Rural Banks Indian
Bank Foreign and Sec Bank

10.4 ENTRY OF BANKS IN RURAL AREAS OF INDIA
The number of branches of banks in rural areas was only 12000 in 1970 -
71, according to the Bank Commission. According to the Commission, in
the near future it is impossible to expect such branches from commercial
banks to be established in rural areas. Therefore, the Bank Business
Commission recommended that rural banks and rural subsidiary banks be
established.
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105 In order to help small farmers and the weaker sections of society, rural
banks should be established under parliamentary law to spread their net
relations across the country. Such a bank was recommended by the
Business Commission. Co-operative sector should be activated and
millions of villages which have not been brought into the cooperative
credit chamber till date, should be brought into co -operative credit room.
Cooperative structures at villages, district and state level should be linked
to commercial bank business.
The Bank Business Commission further recommended that the lenders and
the indigenous banker should be included in the minimum con current list.
Co-operative societies and indigenous bankers should be excluded from
the state list. They should includes in the union list or at the concurrent
list. The Reserve Bank should be able to control the business of rural
cooperatives and allied b ank firms.
Four regional merchant banks should be set up to promote various
productive projects and manage investment. The Commission had also
recommended that the Agricultural Bank of India be established by the
integration of the Farmers Refinance Corpor ation and the Farmers Finance
Corporation.
Table No-01
Rural Share of banks (March 31, 2011)
Bank Group Rural Branches Total Branches
Public Sector Banks 20,398 64,673
Old Private Sector
Banks 765 5,028
New Private
Sector Banks 547 6,973
Foreign Banks 07 319
Regional Rural
Banks 11,871 16,034
Local Area Banks 14 53
All Commercial
Banks 33,602 93,080





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106 Source: Statistical table relating to banks in India 2010 -2011 by RBI
Table No-02









Ref.-Indian Economy ,Ruddar Dutt/KPM Sundaram 61th Ed. P. No.
855
The above data show that at the time of nationalization of commercial
banks (1969) there were 8260 branches of commercial banks in the
country. Of these, 1860 branches were in rural areas. The ratio of rural
branches to the total bank branches was only 22 percent. With the
adoption of branch extension policy after nationalization, the number of
branches of commercial banks increased. It increased to 64,608 at the end
of March 2009. Of the total branches, the number of branches in rural
areas was 20,058. Of the total branches, the proportion of commercial
bank branches in rural areas was 31%. At the time of nationalization, the
country has a bank branch with a population of 63,80In 2009, the
population of 15000 people became a bank branch.
Of the new branches opened by commercial banks after 1975, 75 per cent
have opened in rural areas. Due to the implementation of branch extension
program after nationalization, bank services have also been made
available in rural and remote areas
Check your progre ss: -
1. Explain the entry of Indian commercial banks in rural areas.
10.5 WORK DONE BY NABARD ON AGRICULTURAL AND
RURAL DEVELOPMENT
Since 1954, work on rural credit has continued to expand. Until the 1980s,
the nature of the rural credit issues raised by the Reserve Bank took a very
broad look. The question arose as to whether the central bank of India, like
the Reserve Bank, should invest in such a large area in a particular area
like rural credit. With this idea, NABARD (National Bank for Agriculture
and Rural Development) was established in July 1982. In the past, all the
After
30t
h June Total
Branches
o
f Banks Number of banks
i
n rural
areas The ratio of
branches
o
f Grameen
Bank to
total banks Proportion of
population
per branch
1696 8,260 1,860 22.0 63,800
1991 60,650 32,750 54.0 14,150
2007 72,831 30,551 42.5 16,000
2008 76,142 31,003 40.7 15,100
2009 79,931 31,646 39.6 14,500
2010 84,604 32,494 38.4 14,000

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107 work done by the Reserve Bank on farmers and rural credit was
entrusted to NABARD. The work of the Reserve Bank, which had been
working as a Reserve Bank in the field of agricultural cr edit, has been
entrusted to NABARD in the field of agricultural credit.
Functions of NABARD: -
1. To provide refinancing for agricultural activities in agriculture, small
scale industries, rural and cottage industries, handicrafts and rural
artisans.
2. NABARD p rovides short -term, medium -term and long -term loans to
state co -operative banks, agricultural banks, agricultural rural banks,
development banks, etc.
3. To provide component capital for cooperative societies to the State
Governments for a period of twenty ye ars.
4. NABARD can provide long term loans to any organization affiliated
with the agricultural sector and rural development and with the
approval of the Central Government.
5. The NABARD has been entrusted with the task of central government,
constituent state governments, Planning Commission and all India and
constituent level level agencies concerned with small industries, rural
industries, cottage industries and decentralized sectors.
6. Except Primary Co-operative Societies, NABARD has been
empowered to investi gate the functioning of co-operative banks,
namely district central co-operative banks, state co -operative banks
and regional rural banks.
7. NABARD has established a Research and Development Fund to create
development projects in different rural areas and to promote research
and development as well as to promote agriculture and rural
development.
The extensive work entrusted to NABARD shows that NABARD has been
given a central position in the field of agricultural and rural development.
From this, NABARD's in volvement in rural areas is crucial for the
development of rural India.
10.6 INVOLVEMENT AND PERFORMANCE OF PRIVATE
BANKS IN RURAL AREAS
One of the reforms introduced in India in 1991 was to create a competitive
environment in the banking sector. For this purpose, the private sector was
allowed into the banking sector. As a result, private banks in rural areas of
India have become involved.
H.D.F.C. Bank, Axis Bank, UTI Bank, I.C.I.C.I. Many such private banks
started serving in India. With the introductio n of private banks in the
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108 E. Banking Facility, Internet Banking Facility, A.T.M. Private banks
started offering Indian banking services like Banking, Phone Banking,
Core Banking.
These banks st arted Home Banking to attract customers. As a result,
opening of a bank account, keeping money in a bank, getting a check
book, bank statement is starting to get customers access to their homes.
Banks have been providing customer convenience centres for 24 hours.
Although 80% of the banking business in India is done by public sector
banks, many private banks are providing successful services to the clients
because of the license granted by the RBI to enter the banking sector after
some economic reforms. The se include financing the industries, retailing,
small business and agriculture. Private sector banks have added significant
importance to the bank business. These banks have done well in traditional
banking business as well as insurance, stock market, mutu al fund and
many other fields.
The major private sector banks in India are Catholic Syrian Bank, Dhana
Lakshmi Bank, Federal Bank, Jammu and Kashmir Bank, Karur Vaishya
Bank, Yes Bank etc. Private sector banks have performed better in all
sectors compared to public sector banks. There was a 24% increase in
bank employees. The share of private banks has increased by 30 percent to
60 percent. All these private banks are spreading in rural and urban
areas of India and they are focusing more on rural consumers. Private
banks are doing the work of finding new customers, collecting deposits,
lending a home loan, increasing the saving of rural people, auto loan, farm
loan etc.
As well as large medium and small cities in India, private bank branches
are expanding at the rural district and taluka level. The use of new
technology in this banking sector has increased rapidly. The goals of
updating modernization technologies, increasing the use of information
technology in the banking sector, in the second bank sector im provement
program in India have given greater importance.
10.7 USE OF NEW TECHNOLOGY IN RURAL BANKING
SECTOR IN INDIA
A. Automated Taller Machine (A.T.M.)
1. Withdraw money
2. Obtain details of bank balance in bank balance and near-term accounts.
3. Mini statement.
4. Registration of customer service for example check book, order
letter, transfer.
5. Deposit money in a bank Transfer money from one account to another.
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109 ATM centres of commercial banks

Source: RBI Website Performance of commercial banks, October
2009 -10) Electronic Fund Transfer, Transaction conformity
C) Remote Banking Services
1. Balance amount information. 2.Statement registration.
3. Transfer amount.
4. Filing of passenger checks, demand letters.
D) Bank level services.
1. Withdraw money
2. Keeping deposits
3. Life insurance
4. Information and sale of mutual funds, investment plans
E) Smart Card -
1. Value Collection Cards.
2. ATM card, ATM cum Debit Card, Credit Card, Magnetic tape is
stored on top. On that basis, bank transactions can be done.
3. Prompt refund of customers via smart card.
4. Smart Card acts as Money Purse nationally and internationally.
F) Smart Cards: - (Internet Banking)
The Internet is a network of information connected to many computers.
Banking transactions can be done through the internet, eliminating the
confines of any national, political frontiers at the world level and
anywhere. Dual information is transmitted via the Internet. Banking
transactions can be done through internet banking 24 hours a day and 365
days a year.
Bank Group Total number of
ATMs Percentage of ATMs with branches Nationalized banks 19,702 35.8
State Bank Group 20978 46.9 New Private Sector Banks 18,447 53.4
Foreign Banks 1,026 72.8
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110 G) Core Banking: -
Due to this service all the branches of the bank are connected through the
internet and the custom er can access any branch.
H) Smart Card: -
By using information technology, the services of a bank can be done
without having to attend the bank in person.
I) Electronic Money Transfer.(E.M.T.)
Under this scheme, customers can transfer money from one account to
another, transfer money from one bank to another, transfer money to
another bank branch, domestic and any bank branch in the world.
J) Electronic Clearing System: -
Under this scheme, customers can pay insurance premiums, house rentals,
telephone bills, elec tricity bills, gas bills as per the instructions given by
the customers. This method is debited on a particular date. The account is
credited to those who wish to make a payment. This avoids delays.
Customers do not have to pay checks.
K) Real Time Settlement Plan (RTGS): -
This facility has been started in March 2004. Due to this scheme, check
withdrawal is done within 3 -5 hours. For this, the Electronic Inter bank
Settlement facility is used for bank customer transactions.
Branches and ATMs of Scheduled and Commercial Bank as on end
March -2005

Source: RBI Website Performance of commercial banks, October
2009 -10) Bank Type No pf
Branches On-site
ATMs Off-site
ATMs Total
ATMs
National Banks 33,627 3,205 1,567 4,772
Tate Bank of
India 13,661 1,548 3,672 5,220
Old Private
Sector banks 4,511 800 441 1,241
New Private
Sector Banks 1,685 1,883 3,729 5,612
Foreign Banks 242 218 582 800
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111 10.8 THE ACCESS OF CAPITALIST CLASS IN
AGRICULTURAL MARKET
After the 1991 new industrial policy in India, the process of globalization,
liberalization and privatization has accelerated. L.P.G. spread in urban
areas of India as it did in rural areas. In India, most of the population in
rural areas is based on agriculture. The main business of the rural people is
agriculture and agro based business. Rural society is changing as the pace
of globalization accelerates in the 21st century. Rapid industrialization,
banking business, changing innovations have affected the agricultural
sector in rural areas.
In the process of globalization, many agricultural based industries like
sugar industry, textile industry, edible oil, tea industry, textile industry,
tea, coffee, rubber, spices, food processing industry, horticulture,
flowering, vegetable production were modernized. At the same time
tractors, fertilizers, pesticides, seeds, agricultural implements are being
modernized. At the same time, there have been changes in the land laws.
The SEZ project of globalization is rapidly increasing.
Former Agriculture Minister of the Government of India, Shri Nitish
Kumar proposed a new national policy of agriculture in the Lok Sabha on
July 28, 2000.
In this policy, the use of tools which were not yet used for the
development of the agricultural sector, as well as rural roads for the
development of agriculture, electricity supply, communication,
transportation, telephone services, banking services, agricultural based
trade, processing industries, hybrid seeds, fertilizers, pesticides etc. To
increase the living standard of rural areas by supply and urban from rural
areas To prevent the migration of the population in the area, to bring about
balanced development of these regions, to export the agricultural goods
and to get the right price for the goods of the farmers. To ach ieve the
goals of Environmental Protection and Economic Development, a new
agriculture policy of 2000 was announced. As a result of these new
changes, agricultural practices have changed. With the introduction of
corporate farming, contract farming, the ca pitalist class entered the rural
farming and markets. Apparently there was a new change in the
agricultural business, which is the main business of the rural people. In
this, the capitalist class has increased its investment in commercial
agriculture and c ontract farming. There is no doubt that the history of
contract farming is globally new. Therefore, it is important to know the
details of contract farming.
A) History of contract farming: -
Contract farming began in 1985 in Taiwan in sugarcane agriculture. I n the
twentieth century, banana production was used in the United States in
contract farming. In the seventies, contract farming began with large
companies globally, and spread throughout the world in the eighties. At
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112 sugarcane, cotton, edible oil, poultry. In India, the experiment of
cultivating agriculture from states like Punjab, Tamil Nadu, Karnataka,
Maharashtra, Haryana, Rajasthan, Andhra Pradesh, etc. has been
successful. In Maharashtra, contract farming is found in fruits and
vegetable crops like wine grapes, tomatoes, potatoes, onions, organic
cotton, bananas, as well as poultry production. The seed and pesticide
companies are also contracted. All the cooperative sugar facto ries in the
state contract with the farmers regarding sugarcane production. In the case
of poultry and poultry production, large companies are also found in
contracting with farmers.
B) Definition of contract farming: -
Contract farming means farming done und er a contract agreement with a
contract farmer by a contract farmer. Such agreement shall mean that the
production of such farm shall be purchased by the Contracting Agriculture
Sponsor and shall be as stated in that Agreement.
C) Characteristics of contract farming: -
1) No burden or right of land shall be transferred in any case upon the
farmers' land ownership or on the slope of seven / twelve.
2) To ensure the market price of the farm to the farmers.
3) Establishment of marketing facilities like Warehouse, Cold Storage,
Grading Centre etc.
4) It will give a boost to the process industries.
5) Ensure the industries receive raw material throughout the year.
6) Crop farming will facilitate crop planning.
7) The responsibility of farmers is solely only production of goods.
D) Importan t aspects of the product: -
1) Selection of suitable land in terms of crop and transport.
3) Selection of suitable farmers.
3) Contract as per various crops.
4) Facilities for purchase of agricultural commodities and checking of
weight and quality of farmers
5) Afford ability of staff, crop, local environment for extension work
through sponsors.
6) Use of technology in terms of local information and problems.
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113 (E) Control of Government: -
The Government has made the following provisions to ensure that the
government has control over the agricultural fields.
1) In the field of commodity purchase agreement, the sponsor has to
purchase the commodity purchase agreement, to be registered in the
office of the Market Committee or Government Officers Required.
2) The Government may decid e for which farm the agricultural contract
will be cultivated.
3) In case of any dispute between the farmer and the sponsor under the
contract farming, the provisions have been made by law to expedite its
decision.
4) As the Assistant Registrar conducts Section 101 claims regarding the
loan outstanding of the co -operative banks, the authorized authorities
will be able to handle the claims presented.
5) The judgment given above shall be as per the decree of the Civil
Court.
6) Although the agreement states some of the f armers' land in any case
can't remove.
7) Contract farming has nothing to do with corporate farming.
8) The concept of farming is being revoked by large multinational
companies buying or leasing farmers' land.
9) Corporate farming has no place in the Model Act, nor has the decision
been made to encourage corporate farming.
10.9 SUMMARY
The business of commercial banks in India started from the beginning of
the nineteenth century. Because of the British state in India, the British
were having many difficulties in dealing with their finances. Before
independence period, banks like Presidency Banks, Joint Capital Banks,
Imperial Bank, Reserve Bank of India, Commercial Bank, Co - operative
Bank, Savings Bank etc. were established in India.
After the nationalization of the firs t 14 banks and then 06 banks in India,
the netting of banks in rural areas of India increased exponentially.
The number of rural banks increased in the rural areas for the development
of the weaker sections of the countryside, rural farmers, farm laborers,
rural artisans, rural women, backward classes.
One of the reforms introduced in India in 1991 was to create a competitive
environment in the banking sector. For this purpose, the private sector was
allowed into the banking sector. As a result, private banks began to grow
in rural India. In rural areas, small entrepreneurs, village industries, munotes.in

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114 cottage industries, farmers, rural artisans, agricultural systems etc. were
encouraged. Deposit, saving investment, credit card etc. have been made
available in rural areas. The entry of private companies and capitalist
classes into rural areas has led to the spread of agriculture, supermarkets,
processing industries, investment of multinational companies, construction
companies, etc. in rural areas.
10.10 QUESTION SET
1. Explain the new technology of private banks in rural India.
2. Write down the stages of commercial banks in rural India.
3. Describe the stages of bank business in India.
4. Explain the bank's involvement in the rural areas of India.
5. Explain the work done by NABAR D for agriculture and rural
development.
6. Explain new technology in rural areas of banks.
7. Explain the capitalist class access in rural areas.
10.11 REFERENCES
1. Altrawalkar. S.H Commercial Business Economics, Sheth Prakashan,
Wadala Mumbai
2. Damaji B.S Banking and Finamcial Market Phadke Prakashan
Kolhapur
3. Dhage S.K, Nafde B.B, Anil Kumar Atkare, K.S. Kadam -Cooperative
Banking in India, P.V Publication, Narayan Peth Pune
4. Kamble Ranjan -Indian Economics Bhagirath Prakashan, Shanibar Peth
Pune
5. Gaikwad Mukund Rao-Agribusiness and Marketing, Continemtal
Publication Pune
6. Desai and Bhale Rao-Indian Economic System, Nirali Prakashan Pune,

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[Time: Three Hours] [Marks:100] Please check whether you have got the right question paper N. B:- 1) All questions are compulsory. 2) All questions carry equal marks. 3) Figures to the right indicate marks to a sub-question. Q.1) State the causes of land pollution 14 Marks OR Q.1) State the impact of land pollution 14 Marks Q.2) State the causes of sub-division of land 14 Marks OR Q.2) State the impact of migration 14 Marks Q.3) State the causes of poverty 14 Marks OR Q.3) State the impact of poverty 14 Marks Q.4) State the impact of privatization on agriculture 14 Marks OR Q.4) State the concept of liberalization, privatization and globalization 14 Marks Q.5) Write short notes on any two of the following 14 Marks a) Fragmentation of land b) Causes of migration c) Causes of unemployment d) Consequences of globalization munotes.in