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1 MODULE 1
1
INTRODUCTORY ASPECTS OF RURAL
DEVELOPMENT - 1
Unit Structure
1.0 Objectives
1.1 Concept of Rural Development
1.2 Nature of Rural Development
1.3 Scope of Rural Development
1.4 Characteristics of the Rural Economy
1.5 Summary
1.6 Questions
1.0 OBJECTIVES To know the concept of rural development.
To study the nature of rural development.
To discuss the scope of rural development.
To study the characteristics of the rural economy.
1.1 CONCEPT OF RURAL DEVELOPMENT The proper conc ept of rural development is not found still some thinkers
have randomly put forward few concepts of rural development. But before
you understand the concept of rural development it is very essential to
understand the meaning of these two words -Rural and De velopment.
1.1.1 What is the Meaning of Rural? :
The word „rural‟ is associated with the rural community. Geographical
areas having specific distinguishing features is called a rural area.
According to some sociologist village is the one which is not a cit y. The
person who cultivates land is called is a villager and this villagers
community where it lives is called a village. If in a geographical area the
main occupation and means of living of the people is farming then that
society is called a rural societ y. If in a geographical area 50% or more than
that people‟s main occupation or means of livelihood is farming then that
community is said to be a rural community. If in a geographical area more
than 50% of the population depend on farming that area is said to be a
rural area.
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2 Rural Development
2 1.1.2 What is the Meaning of Development? :
This word development is more often used in economics. The word
development with reference to rural development includes three
constituent parts which include - Agricultural development, Eco nomic
development and Overall development of the rural community. This are
the three important aspects of rural development. „Development‟ means
changing the economic condition of the economically feeble community.
1.1.3 What is the Meaning of Rural Devel opment? :
According to Robert McNamara, “Giving stress on the development
of the weak or feeble rural community like small farmers, landless
farmers and rural artisans and an overall development of the rural area
is Rural Development.”
According to Dr. Swa minathan, “The process of developing the
weaker sections of the rural society and making them strong in all
aspects is rural development.”
Chester Bolls say that, “Rural development is not limited only to
agriculture but improving the standard of small sca le industries,
educational development, advanced communication, rural
electrification, rural health, population control centre and to give
encouragement to rural culture is rural development.”
Rural population has to begin to lead a self -dependent life, pr oviding
technical and other facilities to the rural population for its efforts and
bringing change in oneself means rural development.
Solving problems like poverty, unemployment, illiteracy, and health
of the rural areas by increasing their standard of l iving and giving
stress on overall development of the rural areas does mean rural
development.
Making proper and sufficient use of the available natural resources to
bring about a developmental change in the poorest of the poor section
of the rural societ y is rural development. It is very clear from the
above concepts that rural development is nothing but bringing about a
developmental change in the financial status of the poorest section of
the rural society. For this programs like poverty eradication and
employment generation are to be undertaken. Along with this an
effort taking society to minimize the minimum needs has to be
developed. Rural life, Rural community, Rural areas and their
problems and to find a solution to it is very essential and also stu dy
the rural development process and to find new avenues for the
development and implement it by the rural society is expected.
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3 Introductory Aspects of Rural Development – 1 Following things are to be included while explaining the rural
development programs extensively.
Fulfilling the minimum needs . In this provision of pure drinking water
in each and every village, providing good quality food grains at a
reasonable price, providing shelter, rural electrification, educational
facilities, health facilities etc are to be created.
Creating agro based industries at the village level, creating basic
facilities for this industries, providing transport, communication and
market facilities.
Creating employment opportunities at village level or in the nearby
areas and creating permanent productive capital.
Creating primary educational facilities at village, hamlets, providing
secondary school at the central place in the village, wherever possible
providing junior colleges and improving the educational standards of
the rural society.
Providing library facil ities, television sets agricultural extension
services for cultural development and social change.
Implementing programs to eradicate superstitious beliefs, providing
health facilities at free of cost or at subsidized rate, creating health
centres to incr ease capacity of the human resources and make full use
of this resource in the development process.
Developing independency, cooperation and leadership qualities and
try to solve the problems themselves.
Developing network of roadways in the rural areas, developing the
kutcha roads into permanent pucca roads, developing transport
facilities and providing big market facility for the rural agricultural
produce in the cities.
Developing the available natural resources, and make use of the
dormant natural re source for economic development, and reproducing
the necessary ingredients.
Providing basic facilities and enough capital for developing
agriculture and allied agricultural activities and subsidiary
occupations.
Check your progress:
Q. 1. Discuss the con cept of rural development. munotes.in
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4 Rural Development
4 1.2 NATURE OF RURAL DEVELOPMENT While clarifying the nature of rural development it is very much essential
to understand the sociological (social science) structure and the process of
rural development independently.
1.2.1 Rural Development is a Social Science :
1) Study of the rural community and their problems:
Here a study of rural environment and the community living in it is done.
The social, economic, political and cultural study is taken into
consideration in rura l environment. We can see the problems like poverty,
illiteracy, superstitions, ill health, lack of motivation, fatalist attitude, and
opposition to the changes to be brought to change the lifestyle or
disinterest in changing themselves. An explanation to the above issues is
done in the study of social sciences in rural development.
2) Idealistic Discussion:
While studying the rural community and their problems what measures are
to be adopted is discussed in this issue. Measures such as rural
diversificat ion, generating self -employment for the unemployed, active
participation of the rural people at the grassroots level planning through
the medium of gram -sabha, awareness generation through the voluntary
organizations, development of the weaker sections of the society through
cooperation are suggested. Mahatma Gandhiji‟s concept of Gram
Swarajya and the concept of Decentralization of the democracy the re are
the ideal concepts for bringing about a change in the rural community.
Guidance is given in the social science of rural development to change the
present situation to an idealistic situation.
3) Scientific Attitude and Suggested Facets:
Suggested facets are more important in the social sciences of rural
development because rural development is an action o riented social
science. Rural social science was put forward with the objective to solve
the problems of the rural community. That is why study of programs
whether they are governmental or non -governmental is done in this rural
social science.
4) Interrel ated Scientific Facets:
Though rural development is a social science it deals with the
materialistic, humanistic, scientific attitude. Agriculture and rural
economy, genetically engineering and environmental science are the
different facets of this. It con siders all the issues of this facet.
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5 Introductory Aspects of Rural Development – 1 Check your progress:
Q1. Write short note - Rural Development a social Science.
1.2.2 Rural Development is a Process :
Rural development is an important process to bring about an overall
development and chan ge in the rural community. Its nature is as follows: -
1) People’s Agitation:
Community development program was started with the objective of rural
development. After few years it became a people‟s agitation a mass
movement. As rural development is a prog ram of the people, by the people
and for the people. In the process of rural development rural community
should have the attitude of developing or bringing about a change in the
society and for bringing about this change there should be spontaneous
and act ive participation of the people. For this Balwantrai Mehta had put
forward the concept of Democratic decentralization and three -tier
Panchayat Raj system. As per his recommendation the three -tier system of
Panchayat raj came into existence. Voluntary organ izations also came
forward. Co -operative movement made it possible, for the development
process to get mobility.
2) Extensive Objectives:
Objectives of rural development are extensive in nature and include all the
facets of rural life. Agricultural devel opment, developing available water
resources, Infrastructural development, human resource development,
conservation of natural resources and its proper utility, economic
development, social change, etc objectives have been put forward. To
fulfill this obje ctives various programs, schemes and projects have been
undertaken. As a result the objective of rural development have become of
extensive nature.
3) Processing Industries:
Developing agricultural processing industries, motivating industrialization
in the rural areas, establishing industries based on co -operation so that
maximum benefit reaches the producer. Developing Infrastructural
Facilities: Providing transport and communication facilities, provision of
drinking water, rural electrification, bringin g the level of education to the
highest, providing health facilities and creating favorable conditions for
the development of human resources.
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6 Rural Development
6 Check your progress:
Q1. Rural development is an important process to bring about an overall
development. Exp lain?
1.3 SCOPE OF RURAL DEVELOPMENT Area wise India is big country. Its area is 32,87,263 sq. km. Population of
the country is more than 120 crores, but 70% resides in the rural areas.
The geographical condition is different everywhere. There is va st diversity
in the climate, rainfall, quality of soil, natural resources, and various
occupations having in the rural areas. The rural areas in different regions
have different problems. Many measures had been taken in the post -
independence period but the re was no solution to these problems. As a
result rural development has gained importance to solve the problems in
the rural areas. Therefore the scope of rural development is extensive. This
can be understood from the following points.
i) To bring about a Change in the Rural Occupational Structure:
Agriculture is the main occupation in the rural areas. Out of the total
population 64.5% population is directly engaged in farming. But the
majority small farmers and marginal farmers use traditional method of
farming due to which they could not progress. Due to unstable economic
condition capital investment in the agricultural sector was not possible .As
a result agriculture remained undeveloped. Therefore provision of credit
supply to the agricultural sector, water facilities, provision of agricultural
implements and allied and subsidiary occupation is very important. If the
rural population is provided with some occupations they can be a means to
generate regular income to the families. So we can say the scope of rural
development is extensive with the point of view of rural occupations and
industries.
ii) Basic Necessities:
To create favourable conditions for rural development it is essential to
provide basic necessities in the rural areas. To develop and pro vide the
facilities like transport, communication, unemployment, markets, electric
supply, water supply the scope of rural development has become
extensive.
iii) Industrial Development:
The occupation carried on in the rural areas, are of primary sector i n
nature. The raw material is created from this. But the processing industries
on the raw material is maximum in the cities. Therefore the benefits of the
production is reached to the traders in the cities due to which the economic munotes.in
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7 Introductory Aspects of Rural Development – 1 condition in the rural a reas is not improved. Therefore there is a big
chance that, processing on raw material industries should be established in
the rural areas itself.
iv) Social Development:
People from different caste and religion reside in the rural areas. Also
many tradit ional, undesirable customs are seen in the rural community.
This results in the adverse effects on the progress of the rural community.
Rural community is scattered and there are many problems in the
backward community staying in the remotest areas. Develo pment of this
whole community and include them in the development process is very
essential. To solve the basic problems and bring about a social
development of this community rural development scope has become
extensive.
v) Developing Human Resource:
Total utilization of the available human resource is possible only if rural
human resource is utilized to its full capacity. For this spread of education
and provision of higher education is necessary. To develop the skills in the
human resource training faci lities are to be provided. Health facilities are
essential to increase the efficiency and to preserve the human resource. It
is then only we can utilize the human resource to its fullest in the
development process. Therefore there is an extensive scope in the rural
human resource development, which motivates the economic
development.
vi) Developing Natural Resources:
Natural resources are available in abundance in the rural areas. As this
natural resource is not utilized it is remaining in the dormant sta te. To
develop this natural resource capital is required in large proportion so that
it can be used for economic development. To develop the factors like land,
water, minerals, animal resources, ocean wealth in proper proportion and
make its use in economi c development the scope of rural development has
to be extensive.
vii) Population Control:
The main obstacle in the rural development is the increasing population at
a faster rate. If the population is not controlled development is not possible
at any co st. Population control is an important factor so the scope of rural
has to be extensive.
Check your progress:
Q1. Discuss the scope of rural development. munotes.in
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8 Rural Development
8 1.4 CHARACTERISTICS OF THE RURAL ECONOMY Main characteristics of rural economy are:
1. Village is an Institution :
The Village is a primary institution and it satisfies almost all the needs of
the rural community. The rural people have a feeling of belongingness and
a sense of unity towards each other.
2. Dependence on Agriculture:
The rural ec onomy depends much on nature and agricultural activities.
Agriculture and allied activities are the main occupation in rural areas.
3. Life of Rural Peopl e:
Lifestyles in villages are very simple. Public services like education,
housing, health and sanita tion, transport and communication, banking,
roads and markets are limited and unavailable. Rural people rely much on
faith, superstitions and traditional cultural practices. The standards of
living of majority of rural people are poor and pitiable. In term s of
methods of production, social organization and political mobilization,
rural sector is extremely backward and weak. In recent years, the
incidence of alcohol drinking has gone up.
4. Population Density :
Population density, measured by number of perso ns living per sq. km is
very low and houses are scattered in the entire villages.
5. Employment:
There exists unemployment, seasonal unemployment and
underemployment in rural areas. Unemployment refers to the situation of
people with willingness and abili ty to work but is not getting employed.
Underemployment also called disguised unemployment is the situation of
people employed in excess, over and above the requirement. Disguised
unemployment is a situation Where people work but no increase in
production. Both the situations are common in rural areas.
6. Poverty:
Poverty is a condition where the basic needs of the people like food,
clothing and shelter are not being met. According to the 2011 -12
estimates, about 22 crores of people in rural areas are poor and live below
the poverty line.
7. Indebtedness:
People in rural areas are highly indebted owing to poverty
and underemployment, lack of farm and non -farm employment
opportunities, low wage employment, seasonality in production, poor
marketing network e tc. A famous British writer Sir Malcolm Darling munotes.in
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9 Introductory Aspects of Rural Development – 1 (1925) stated that „An Indian farmer is born in debt, lives in debt, dies in
debt and bequeaths debt‟. Since formal loan facilities are not available to
the villagers, they depend on local money lenders who, like a parasite,
squeeze the villagers. Hence the villagers commit suicide frequently.
8. Rural Income:
The income of the rural people is constrained as the rural economy is not
sufficiently vibrant to provide them with jobs or self – employment
opportuni ties.
Large proportion of labourers and skilled persons are underemployed and
the scope for increasing their income is limited.
9. Dependency:
Rural households are largely dependent on social grants and
remittances from family members working in urban are as and cities.
10. Dualism:
Dualism means the co -existence of two extremely different features
like developed and underdeveloped, organised and unorganised,
traditional and modern, regulated and unregulated, poor and rich, skilled
and unskilled and simila r contradicting situations in a region. These
characteristics are very common in rural areas.
11. Inequality:
The distributions of income, wealth and assets are highly skewed
among rural people. There are number of historical, social, economic and
politic al reasons behind the existence of inequality. Landlords and
landowners dominate the rural activities. Land, livestock and other assets
are owned by a few people.
12. Migration:
Rural people are forced to migrate from villages to urban areas in order
to seek gainful employment for their livelihood. This character of the
development gives rise to the formation of cities. Enmity and Lack of
basic amenities in rural areas also push the people to migrate to urban
areas. This is called‟ double poisoning‟ by Sch umacher, one side villages
are empty, on the other side towns are congested. His book is „‟ Small is
Beautiful “describes the dangers of the present kind of development.
1.5 SUMMARY Rural development is very urgent in the context of the overall growth and
development of Indian economy due to the following reasons.
A major share of population lives in rural areas, and their
development and contributions are very much supportive for the munotes.in
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10 Rural Development
10 nation building activities. India cannot be developed by retaining rural
as backward.
The rural economy supports the urban sectors by way of supplying
drinking water, milk, food and raw materials. Hence, the
backwardness of the rural sector would be a major impediment to the
overall progress of the economy.
Improvements in edu cation, health and sanitation in villages can help
avoid many urban problems namely, begging, rack picking and road
side slumming.
Development of agriculture and allied activities are necessary for
providing gainful employment in rural areas and improving overall
food production.
The evils of brain -drain and rural -urban migration can be reduced if
rural areas are developed.
In order to better utilise the unused and under -utilised resources, there
is a need to develop the rural economy.
Rural development sho uld minimise the gap between rural and urban
areas in terms of the provision of infrastructural facilities. It was
called as PURA by former President Abdul Kalam.
In order to improve the nation‟s status in the global arena in terms of
the economic indicato rs like Human Development Index (HDI),
Women Empowerment Index (WEI), Gender Disparity Index (GDI),
Physical Quality of Life Index (PQLI) and Gross National Happiness
Index (GNHI) should be given due attention.
1.6 QUESTIONS Q1. Discuss the c oncept and na ture of rural development.
Q2. Explain the scope of rural d evelopment .
Q3. What are the characteristics of the rural economy?
*****
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11 2
INTRODUCTORY ASPECTS OF RURAL
DEVELOPMENT - 2
Unit Structure
2.0 Objectives
2.1 Introduction
2.2 Objectives of Rural Development
2.3 Importance of Rural Development
2.4 The Problems of Rural Development in India
2.5 Questions
2.0 OBJECTIVES To understand the objectives of rural development.
To know the importance of rural development.
To study about the problems of rural development in India.
2.1 INTRODUCTION Rural Development is defined as an overall improvement in the economies
and socia l well -being of villagers and the institutional and physical
environments in which they live. According to the World Bank, ‘Rural
Development is a strategy designed to improve the economic and social
life of a specific group of people - rural poor’. In sho rt, rural development
is a process of improving the rural areas, rural people and rural living.
2.2 OBJECTIVES OF RURAL DEVELOPMENT During the British period the self -sufficient villages were ruined which
gave rise to many problems. After the Independence Indian government
gave more stress on programs for developing rural areas through planning.
Before implementing the programs and schemes for rural development
some objectives were decided.
The objectives of rural development are as follows:
a) Increasing the Agricultural Production:
Out of the total population 64.5% population directly depends on
agriculture. As majority population is engaged in agriculture it is
necessary to increase the agricultural production through agricultural
development. The main objective of rural development is to increase the
agricultural production by using new technology i.e new techniques of
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12 Rural Development
12 b) Research and Training:
Establishing research centres, agric ultural universities, and agricultural
colleges for rural development. High yielding variety seeds should be
invented through research and that has to reach the producers and also
train them in the same, developing agricultural extension services, allied
and subsidiary occupations are to be promoted, new technique and
technology has to reach the farmers and convince them to use the same.
c) Develop Agricultural Processing Industries:
Raw material processing industries mostly are set up in the urban areas, a s
a result the farmers have to sell the raw material at a very low rate. The
raw material is not sold at a desired and reasonable rate. Which is again a
reason for the farmer’s low standard of living. Therefore if the farmer has
to be benefited then the pr ocessing industries have to be set up in the rural
areas than the urban areas. This is also one of the objectives of rural
development.
d) Allied activities and Subsidiary occupations:
Out of the total land in the country 77% depends on irrigated water sup ply.
Therefore the unemployment persists for the remaining 8 months other
than the rainy season. Therefore the objective of developing allied and
subsidiary occupations is taken into consideration so that through this
medium employment can be generated.
e) Development of the weaker sections through Co -operation:
To unite the economically weaker sections of the rural society. To stop the
ill-treatment given to the small farmers, marginal farmers, agricultural
labourers and small traders by establishing co -operative societies. This are
the objectives to provide the benefits of the new techniques of production
to the farmers through co -operation, to establish co -operative credit
societies to stop the exploitation of farmers from the moneylenders and to
make th e weaker section of the rural society powerful through co -
operation.
f) Fulfilling the basic necessities of the rural community:
To create a favourable climate to develop the human resources by
fulfilling the basic needs like food, clothing, shelter, educ ation, health,
pure drinking water, rural electrification for the overall development of the
rural community.
g) Implementing self -employment programs:
Providing facilities like employment training for the rural youths,
providing financial assistance to t he weaker sections of the society,
eradicating poverty by including the weaker sections in the development
process.
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13 Introductory Aspects of Rural Development – 2 h) Creating awareness:
To create love and feel proud for the country, equality, unity, fraternity
and national integration in the minds of rural community. Creating
awareness among the rural community to keep away the distinction
between the caste, class, religion, region.
i) More stress on rural industrialization:
Minimizing the distance between the rural thinking and urban thinking. To
bring together the rural and urban culture.
j) To raise the standard of living:
They should be provided with income generating sources and to develop
the household resources.
k) To remove the supernatural beliefs:
To remove the supernatural beliefs from the mind of the rural community
and develop a scientific attitude. To keep away the rural community from
the evil or obnoxious traditions and cultures and sow the seeds to develop
themselves on their own.
l) Employment generating programs:
Start the employme nt generating programs at local level and create
productive assets (benefits) from it.
Check your progress:
Q1. What are the objectives of rural development?
2.3 IMPORTANCE OF RURAL DEVELOPMENT It is very important to develop a scientific attitud e to study rural
community in rural development. Through this medium it is possible to
study the problems in rural areas and measures can be adopted to solve
this problems. Mahatma Gandhi’s views are very important with regards
to rural development. India is a land of villages and if this villages are not
developed then rural development is not possible till then we cannot say
country is developed. Out of the total geographical area 80% is rural area.
It means we cannot say the country is developed till and until the
maximum population living in the maximum geographical area i.e rural is
developed. Indian constitution has adopted the objectives of justice and
equality. To achieve this objectives rural areas are to be provided with the
basic necessities like food, clothing, shelter, education, and health
facilities. munotes.in
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14 Rural Development
14 To remove the inequality between the economic condition in the rural and
urban areas rural development has to be given priority. This is understood
by the politicians and planning commission. From the 6th five year plan
rural development was given more importance and priority providing
more monetary benefits and rural development program was started on a
wider 12 scope. Which resulted in the mobility of rural development
process. But still all the rural community problems were not solved. If and
only if the rural areas become self -dependent, then in the real sense we can
say rural development has taken place. Rural development is important
because it will help the rural people to develop themselves and along with
it countries economic status will get mobility.
2.4 THE PROBLEMS OF RURAL DEVELOPMENT IN INDIA Rural areas are facing number of problems relating to, 1) People, 2)
Agriculture, 3) Infrastructure, 4) Economy, 5) Society and Culture, 6)
Lead ership and 7) Administration.
The problems of rural economy are discussed below.
1. People Related Problems:
The problems related to individuals and their standard of living consist of
illiteracy, lack of technical knowhow, low level of confidence, depend ence
on sentiments and beliefs etc.
2. Agriculture Related Problems:
The problems related to agriculture include
1. Lack of expected awareness, knowledge, skill and attitude,
2. Unavailability of inputs,
3. Poor marketing facility,
4. Insufficient ex tension staff and services,
5. Multidimensional tasks to extension personnel,
6. Small size of land holding,
7. Sub-division and fragmentation of landholdings,
8. Absence of infrastructure to work and stay in rural areas,
9. Primitive technology and low adoption of modern technologies
10. Reduced public investment and absence of role for farmers in fixing
the prices for their own products..
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15 Introductory Aspects of Rural Development – 2 3. Infrastructural Related Problems:
Poor infrastructure facilities like, water, electricity, transport, educa tional
institutions, communication, health, employment, storage facility, banking
and insurance are found in rural areas.
4. Economics related Problems:
The economic problems related to rural areas are: inability to adopt high
cost technology, high cost o f inputs, under privileged rural industries, low
income, indebtedness and existence of inequality in land holdings and
assets. In fertile areas, a few absentee landlords own large area and they
do not evince greater Interest in improving the performance of agriculture.
5. Leadership Related Problems:
The specific leadership related problems found in rural areas are:
Leadership among the hands of inactive and incompetent people, self -
interest of leaders, biased political will, less bargaining power and
nega tion skills and dominance of political leaders.
6. Administrative Problems:
The rural administrative problems consist of political interference, lack of
motivation and interest, low wages in villages, improper utilization of
budget, and absence of monitor ing and implementation of rural
development programme.
Rural poverty, rural unemployment, rural industries, micro finance, rural
heath and sanitation and rural infrastructures are the issues that are
considered for detailed discussion.
2.5 QUESTIONS Q1. Dis cuss the objectives of rural development.
Q2. Describe the importance of Rural Development.
Q3. Explain the p roblem s of Rural Development in India.
*****
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16 MODULE 2
3
APPROACHES TO RURAL
DEV ELOPMENT - 1
Unit Structure
3.0 Objectives
3.1 Introduction
3.2 Gandhian Approach to Rural Development
3.3 Rural Reconstruction Approach to Rural Development
3.4 Community Development Approach to Rural Developmen t
3.5 Summary
3.6 Questions
3.0 OBJECTIVES To know the concept of rural development and Gandhian approach.
To know about rural reconstruction approach and community
approach of rural development.
To know about how rural development is possible through sectoral
and participatory approach.
3.1 INTRODUCTION Rural development is vital not only for the mainstream of the population
living in rural areas, but also for the comprehensive economic expansion
of the country. Rural development is considered to be o f obvious
importance in the country today than in the past days in the process of the
evolution of the country. It is an approach that tries to obtain an improved
productivity, better socio -economic equality and ambition, and stability in
social and econom ic development.
The main task is to reduce the scarcity that exists in roughly about 70
percent of the rural population, and to make adequate and healthy food
available.
The subordinate task is to confirm the availability of clothing and
footwear, a clean atmosphere and house, medical attention, recreational
facility, communication, education and transport.
Thus, Mahatma Gandhi had a vision to develop rural India and tried all
villages would be self -dependent. Mahatma Gandhi had an image of India
and clear awareness of its villages and made a definite statement that
"India lives in her seven and half lakhs of villages". Gandhi gave message munotes.in
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17 Approaches to Rural Development - 1 to turn to the rural areas except of cities and start our business in rural
areas. The development of the nation lies in the development of villages
that would be at vital place in the economic programme would bring them
in the main stream of development. That's why after independent, our 1st
five-year plan gives more importance of rural development and larger
productivity to solve the problem of acute poverty and self -reliance in
food-grains production.
3.2 GANDHIAN APPROACH TO RURAL DEVELOPMENT 3.2.1 Introduction :
With reference to India, rural development may be demarcated as
maximising agricultural production and activ ities related to agriculture in
the rural areas including development of rural industries with stress on
village and cottage industries. It assigns significance to the generation of
maximum possible job creation opportunities in rural areas, especially for
the weaker sections of the community so as to enable them to improve
their standard of living.
Gandhian approach to rural development may be considered as ‘idealist’.
It assigns highest rank to ethical values and gives importance to ethical
values over ma terial conditions. The Gandharans believe that the source of
ethical values in general lies in religion and Hindu scriptures like the
Upanishads and the Gita, in particular.
The ‘Rama Rajya’ concept forms the basis of Gandhiji’s idea of a supreme
social o rder. Gandhi demarcated Rama Rajya as “sovereignty of the
people based on moral authority”. He did not assess Rama as a king, and
people as his subjects. In the Gandhian scheme, ‘Rama’ stood for God or
one’s own ‘inner voice’ Gandhi believed in a self -gove rning social order
in which people are ultimate. Their supremacy is, however, not absolute. It
is subject to ethical values.
3.2.2 Gandhi's approach of Development :
The villages are the elementary component of the Gandhian perfect social
order. Gandhi mom entarily pointed out, "if the village dies India will die
too. We have to make a choice between India of the villages that is as
traditional as herself and India of the cities which are a creation of
overseas control". His concept of a perfect village refe rred to a village
which belonged to the time period prior to the British rule, when Indian
villages were supposed to make the group of sovereign independent
nations.
The central authority will have no power to impose its decisions on village
nations excep t the ethical pressure or power of persuasion. The economics
system and transport system introduced by British have destroyed the
"republican's character of villages". munotes.in
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18 Rural Development
18 Gandhi firmly believes that villages republics can be built only through
decentralisati on of social and political power. In such a system decision
making power will be bestowed in the Village Panchayat rather than in the
state and the national capital. The representatives would be chosen by all
adults for a fixed period of five years. The el ected representatives would
create a board, called the panchayat.
The Panchayat exercises legislatives, executive and judicial functions. It
would look after health, sanitation and education of the village. It would
be the Panchayats duty to defend and up heaval 'untouchables' and other
poor people. Resources required for Gandhian Approach in order to
manage village matters would be raised from the villages.
3.2.3 Self -Sufficient Production :
The village should be self -sufficient in order to satisfy its bas ic needs like
clothing, food, and other necessities are concerned. The village has to do
importation of certain things which it cannot be produced in the village.
Gandhi said " We shall have to manufacture or produce more of what we
can, in order thereby t o get in exchange, what we are not able to
manufacture or produce".
Rural economy should be strategized with a view to generate full
employment for all the adults of the village. Each man should be
guaranteed employment to be enable him to meet his basic needs in the
village itself so that he is not compelled to travel to towns. In the final
analysis full employment should be related with equivalence.
3.2.4 Industrialization :
Gandhiji sustained that industrialization would benefit only a few and will
lead to concentration of financial power. Industrialization leads to inert or
active abuse of the villages. It inspires competition. Large scale
manufacture requires advertising. Advertising means profit -seeking
through a manipulative mechanism. Moreover indus trialisation, replaces
workforce and hence it adds to unemployment. In a country like India,
where millions of workers in the villages who do not get work for even six
months in a year, industrialisation will not only upsurge unemployment
but force workers to migrate to urban areas. This will ruin villages.
3.2.5 Principles of Trusteeships :
Gandhiji was not contrary to the institution of private property. But he
wanted to restrict the rights of private property to what was necessary to
yield an honourable livelihood. For the excess he advocated the principle
of trusteeships. Gandhiji stressed the principle of trusteeship in social and
economic affairs. He firmly believed that all community property should
be held in trust. The capitalist would take care no t of themselves but also
of others. Some of their excess wealth would be used for the rest of the
society. munotes.in
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19 Approaches to Rural Development - 1 The poor workers, under trusteeship, would consider the capitalist as their
benefactors, and would repose faith in their noble intentions. Gandhiji felt
that if a such trusteeship were established, the welfare of the workers
would increase and the clash between the workers and employers would
be avoided. Trusteeship would benefit considerably " in realising a state of
equality on earth."
Gandhiji stro ngly believed that land should not be possessed by any
individual. Land belongs to God. Hence, individual ownership of land
should be a rejected. For that a land owner should be convinced to become
a trustee of his land. He should be persuaded that the lan d he possesses
does not belongs to him. Land belongs to the public and must be used for
the welfare of the public. They are merely trustees. By urging, the heart of
landowners should be altered and they should be persuaded to donate their
land willingly.
Gandhian Approach to rural development attempts to rebuild village
republics which would be self -governed, self -sufficient and non -violent,
so far as the basic necessities of rural population are concerned. Apart
from creating a new socio -economic order, i t strives to transform man,
otherwise the changes in the socio -economic order will be short -lived.
3.3 RURAL RECONSTRUCTION APPROACH TO RURAL DEVELOPMENT 3.3.1 Introduction :
In the Indian context, the rural population has been growing without a
balanced i ncrease in production or income. The average villager has a
pathetically low standard of comfort.
He is already “embraced and shifted life’s requirements to the vanishing
point.” He is remarkably affected by the effects of poor harvests and his
emotions an d sad content have long been objects of sympathy. To affect
any real enhancement in his condition, rural reconstruction programme is
an attempt in the right direction.
Rural reconstruction indicates revamp of the villages for the total welfare
of the rural population. It is concerned with to their economic, political
and social development. The principal objectives of rural reconstruction
include (a) abolition of poverty by means of renewal of cottage industries,
formation of cooperative societies, enhancem ent of transport, (b) spread of
education, (c) progress of health, (d) eradication of social malpractices like
untouchability, casteism and the like. The non -violent Swaraj of Mahatma
Gandhi was founded on the awareness of rural reconstruction.
Rural recon struction has been encouraged by three schools of thought who
are known as (i) The Philanthropic Group, (ii) The Reformist Group, and
(iii) The Revolutionary Group. munotes.in
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20 Rural Development
20 The Philanthropists propose a realistic approach. They beg for refining the
condition of th e rural population within the horizon of the existing rural
institutions and structure of the rural society.
They attach highest rank to purely charitable endeavour’s like (i)
formation of hospitals and schools, (ii) creation of charity funds to furnish
to the needs of the rural poor people, (iii) ethical appeals to money lenders
or landlords to reduce their burdens on the labourers and peasants.
The Reformists adopt that it is the shortcoming of the existing social
institutions that originates economic wre tchedness and socio - cultural
backwardness of the rural population. They, therefore, highlight the need
of reorganization of the social institutions for the healthy functioning of
the social system in order to bring about all -inclusive development of the
rural community.
The Revolutionary group advocates for the programme of revolutionary
change of the rural atmosphere. The thinkers belonging to this group are
of the view that ills of the rural community are not an outcome of the
shortcoming of the rural so cial institutions but are associated of the social
system.
These evils are the unavoidable product of the normal functioning of the
modern social order. Therefore, they recommend sweeping change of the
rural social institutions to bring about a radical cha nge in the social
system.
3.3.2 Rural Reconstruction Approach :
The programme laid thrust on the following points:
1. Firstly, there should be a comprehensive programme to improvements
carefully organised for improving all aspects of rural life.
2. Secondly, inc reased agricultural production holds the key to the
success of the movement. Programme for this purpose to cover all
areas should be worked out from year to year and there should be an
efficient organisation for supplies and services and credit.
3. Third, th e block team should work unitedly and with a single aim and
its activities co -ordinated. The best non -official leadership should be
enlisted for the programme.
4. Fourth, the agency in the village through which to assist every family
should be the panchayat a nd co -operative, the village school and
library should be the centre for most activities. The Baroda
experiment was a great success.
3.3.3 Importance of Rural Reconstruction:
The significance of rural reconstruction cannot be opposed. Rural
reconstruction puts an end to mistreatment, illnesses, illiteracy, betting,
drinking, bribery or casteism. It seeks to establish a socialist system in the munotes.in
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21 Approaches to Rural Development - 1 country and thereby brings about the social and economic development of
the rural population.
By establishing agro -based and cottage industries, rural reconstruction
answers the food problem of the nation and saves millions of rupees in
foreign exchange which goes towards the import of food grains. It also
increases the national income.
Indian culture will be renewed and will move ahead through rural
reconstruction. Rural reconstruction, in this way, will make way for the
formation of a true democracy in India, since most of the population lives
in the rural areas.
Various individual groups, associations and parties ha ve recognized the
gigantic task of rural reconstruction in their own light. Prominent among
them are government institutions, welfare associations, missionary groups,
leaders, planners, philanthropic bodies and others.
3.3.4 Progress and Schemes for Rural Reconstruction :
1. Encouraged by thoughtful humanism, Rabindranath Tagore’s
experiments at Sriniketan in 1921 were intended for both the
economic as well as the moral rehabilitation of the rural people.
2. Rural reconstruction programme was started by Spencer H atch at
Martandum in 1921. Martandum rural reconstruction centre was
opened with a five -sided programme including spirit, mind, body,
economic and social side. To meet the spiritual, mental and physical
needs of the people, social activities were introduce d in health centres,
libraries, boy scouts and girl guides, and in sports club. Special stress
was placed on folk -dances and folk -singing. Co operation in work and
play and in fact in all activities of life was effectively emphasised.
3. The “Gurgaon Scheme” undertaken in 1920 was the real -world
application of the principle that the villager himself must be made to
take bigger interest in himself and in his village before any results can
be attained; and the government agencies should support, help and
guide h im for bringing about rural welfare. The progress work taken
up under the Gurgaon scheme created (a) institutional work including
a School of Rural Economy to train village guides for the rural
upthrust work, a Domestic School of Economics to upthrust vill age
women and Health association to encourage public health, (b) rural
hygiene work, (c) agricultural expansion programme, (d) education
for scouting and development of co -education, (e) co -operation, (f)
co-ordination and advertising and (g) social reform s like ban of child
marriages, eradication of purdah etc.
4. The scheme made the people and the government aware of the vital
problem of village reconstruction as an immediate requirement. The
rural reconstruction centre in Baroda was established in 1932 and
the work started in a group of villages round Kosamba. The centre
pointed at: (i) implementing an enhancement in all facets of rural life; munotes.in
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22 Rural Development
22 (ii) undertaking exhaustive work to realise this aim; (iii) evolving best
type of village leadership; and (iv) undert aking various educational,
economic and moral programmes for attaining rural reconstruction.
5. The Firka Development Scheme started by Madras Government
in 1946 intended to attain the Gandhian ideal of “Village Swaraj” by
carrying about not only sanitary, ec onomic, educational and other
developmental activities of villages but also by energizing the spirit of
the people and making them self -reliant and self -confident. Sarvodaya
Scheme was started by the Bombay Government with a view to
encouraging the continu ance of Gandhiji’s constructive programme.
6. The fundamental idea of this scheme was to teach the villagers the
spirit of self -help and mutual help. Begun under the funding of the
provincial government of Uttar Pradesh in late 1948 with a unit of
sixty -four villages, the project of Etawah finally became an example
for Community Development Projects and National Extension Service
blocks in thousands of villages in every part of India by an educated
popular government and carried through without pressure among a
peasantry known for its conservatism.
7. The Nilokheri test in 1948 was planned not only to rehabilitate the
displaced persons but also visualised a core township with all the
amenities of an urbanized society.
8. In the Post – Independent India , rural reconst ruction programmes
are affected through specific efforts. They include Five Year Plans,
Community Development Projects, Co -operative Movement,
Panchayati Raj and Land Reforms.
9. So far as land reform measures are concerned, a large number of
tenants or agric ulturalists have now become the owners of the land
that they are farming. The slogan “land to the tiller” has been
successfully transformed into reality in most of the states of India.
The tenancy rights are more protected now. The zamindari eradication
laws have succeeded in removing the intermediaries.
10. Tenancy legislations have been passed in most of the states to control
rent and also to make the rent fair and judicious. Removal of the
tenants from the land which they have been cultivating becomes a
tough task now. Most of the states have passed ceiling laws to fix the
maximum amount of land that an individual or family can own.
Needless to state that this is a step in the right direction of attaining
social justice. Attempts have been made for merging of holdings. So
far 51.8 million hectares of land have been merged in the country. The
evil of absentee landlordism related with the Indian agriculture has
been removed.
11. Co-operative farming has been backed to solve the problems of sub -
division and partition of holdings. Through the Bhoodan movement
efforts are being made to give land to the landless labourers. Efforts munotes.in
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23 Approaches to Rural Development - 1 are also being made for the gathering and updating of the land
records.
12. The Panchayati Raj through the organisation of Gram Panchayat,
Panchay at Samiti and Zilla Parishad got distinct attention of the
government as a result of the recommendation of Balwant Rai Mehta
Committee in 1957. Politically the system has made an average
citizen more aware of his rights than before. So far as the
organizat ional implication of the Panchayati Raj system is concerned,
it has connected the gap between them. Recently, Co -operative
Movement has provided a number of assistances to the rural
population in numerous ways. Co -operative societies have provided a
huge a mount of credit to the farmers at a discounted rate. They have
promoted the habit of carefulness and self -help among the rural
population.
13. The Community Development Programme has been the major rural
reconstruction scheme started by the government of free India. The
programme is contributory in raising the standard of living of the rural
population and in reconstructing the rural India.
14. The Five -Year Plans also played an important role in the success of
the Rural Reconstruction Programme. In the first, sec ond and third
five-year plans efforts were made to solve the key problems of the
villages such as illiteracy, unemployment and poverty. They laid
emphasis on economic growth. But in the subsequent five year plans
supreme importance was given to the growth of self -reliance, removal
of poverty and modernization.
3.3.5 Obstacles in Rural Reconstruction Approach :
The programme of rural reconstruction has been beset with a number of
obstacles. They are as follows:
1. Exclusive attention on one characteristic of village life:
Some people and establishments entirely concentrate on one single
characteristic of the rural life like fight against disease, sanitation,
economic welfare, education, etc. They separate one characteristic of the
village life from its other c haracteristics. The organic unity of the village
life is not to be seen.
2. Predominantly emotional approach:
People and establishments concerned with the work of rural reconstruction
don't have scientific planning for the assignment they start. They do no t
take into consideration the fact that a patient collection of realistic data
pertaining to the ethnic and communal composition, customs and beliefs,
psychological traits of the rural population is also crucial for the purpose.
They develop several simple programmes which frequently meet either
with disappointment or with limited success.
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24 Rural Development
24 3. Lack of coordination of work:
The program of rural reconstruction is categorized by absence of co -
ordination of activities in various areas. This script the work of s ome
establishments and groups. Further, their activities are often based on
contradictory value systems. Again, in the absence of a single belief to
determine and permit the varied activities in different fields, mutual
opposing of activities is the only r esult.
4. Inadequate capability to evaluate the results:
Some groups and establishments show inadequate capability for a
appropriate assessment of the consequences of their efforts in various
areas of village work. Since they have no satisfactory start of the
cumulative result of their activities, they get a unclear view regarding their
movement towards their goal. In the absence of appropriate planning and
goal assessment, there is also the risk of losing the path from the chosen
goal. Irregular and unexpe cted forms of rural welfare incline to make the
picture of the rural reconstruction work disordered. Moreover, the actions
taken for the prevention of famines and floods etc. are insufficient. The
working of the Panchayats is not up to the satisfactory lev el. The amount
of money spent upon the road construction in the villages is substantial
when one compares the amount of money spent on the construction of the
same to the quality of the roads built. There is barely any considerable
enhancement in the area of small scale and cottage industries. In very few
villages in which health facilities in the form of hospitals and maternity
homes are being provided. Very little has been done with respect to free
and compulsory primary education. There is barely any con siderable
development in the condition of small and marginal agriculturalists and
agricultural workers.
5. Absence of appropriate sociological viewpoint:
Last but not least, the main shortcoming pertaining to rural reconstruction
programme arises from shor tage of proper sociological viewpoint on the
part of various groups and establishments connected with the programme.
The achievement of rural reconstruction programme depends upon
appropriate understanding of the important laws governing the progress of
rural society. But in reality, this characteristic has been very much
ignored. As a result, the Rural Reconstruction Programme loses much of
its worth.
3.3.6 Suggestions for Rural Reconstruction Approach :
Prof. C.B. Mamoria has presented a number of valuable suggestions for
the accomplishment of the rural reconstruction programme. They are as
follows:
1. There should be a collective growth with an ever -rising speed in each
positive field. A rising trend should be maintained till the particular
program reaches th e satiety point by achieving the end set out for it. munotes.in
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25 Approaches to Rural Development - 1 2. There should be appropriate organization among the several aspects
of the program. There should be concurrent development on a number
of fronts in an organically connected manner.
3. Success in the modest p rograms should give way to more tough and
complex programs of greater dimensions.
4. Farming productivity should be enlarged through the adoption of
better -quality techniques of production and physical changes by
means of irrigation, soil conservation, commun ication etc.
5. The education level of the rural population should be elevated and
their skill and level of interest should be developed so as to empower
them to play active role towards the accomplishment of the rural
reconstruction program.
6. The present inst itutes of the rural community should be altered
keeping in view the needs of the rural population.
7. Local people should accept more and more responsibility towards the
active execution of rural reconstruction program.
8. There should be satisfactory provision of greater facilities, services
and physical resources in order to provide best conditions for the full
development of the sectors of social services, industry and agriculture.
9. Efforts should be made to quicken the procedures of urbanization and
rural indu strialization so as to eradicate unemployment and discharge
the pressure on land.
10. A balance should be re -established between manpower and material
resources through the control of population and maximum expansion
of the resources.
11. Last but not least, the p rogramme of rural reconstruction should have
a high survival value.
In fine, it cannot be argued that the problem of rural reconstruction
requires to be undertaken from two sides, one of which is economic and
the other moral. So far as the economic side of the challenge is concerned,
an atmosphere free of feelings of bias against innovation and western
philosophy has to be created to pursue economic matters with the power of
economic development.
The ethical character of the rural population should be eleva ted to a higher
level. The age -old Indian ideal of simple living and high thinking must be
imparted to the rural population. Only sweeping efforts by the government
accompanied by lively public support can bring about the anticipated
enhancement in the con ditions of the villages.
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26 Rural Development
26 Check Your Progress:
1. What is the Gandhian concept of Industrialisation?
2. Discuss self -sufficient production approach of Gandhian model of
rural development.
3. Explain importance of Rural Reconstruction a pproach of rural
development.
4. Explain various schemes for rural reconstruction approach of rural
development.
5. What are the obstacles of rural Re -construction approach of rural
development.
3.4 COMMUNITY DEVELOPMENT APPROAC H TO RURAL DEVELOPMENT 3.4.1 Introduction :
During the first quarter of the present century, it was realised that if the
poverty of India's teeming millions is to be removed, more attentions had
to be given to rural areas where 80 percent of Indian populati on are living.
Therefore, several experiments in rural reconstruction were undertaken by
official and non -official agencies which proved the beneficial effects of munotes.in
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27 Approaches to Rural Development - 1 intensive area projection in which activities in various fields of
development were closely i ntegrated.
The rural development programmes, introduced in the First plan aimed at
initiating and directing a process of change with a view to transform the
social and economic life of villages. The desired change in social life and
the production process of the agrarian economy was sought to be achieved
by initiating various progressive schemes of socio -economic development
programmes. The necessary instrument for the implementations of this
programme came which is known as Panchayati Raj System. Communit y
Development Programme was the result of this right experiment.
Community development has been defined as "a movement designed to
promote better living for the whole community with the active
participation and on the initiative of the community." Essenti ally,
community development was looked upon as an integrated approach to
local development as a part of the bigger scheme of planned national
development.
3.4.2 Objectives of Community Development Program:
Shri V.T. Krishnamachari, while reviewing the obj ectives of the
Community Development Programme can be explain in the following
points:
1) Leading rural population from chronic under -development to full
employment.
2) Leading rural population from chronic agricultural under -production
to full production by sc ientific knowledge.
3) The largest possible extension of the principles of co -operation by
making rural families credit -worthy.
4) Increased community efforts for the benefit of the community as a
whole, such as village roads, tanks, wells, schools, community centre,
children's park, etc.
In short, the aim of Community Development Programme is not merely to
provide ample food, clothing, and shelter, health and sanitation facilities in
villages but more important than the immediate material improvement in
the c hange in outlook of the people, instilling in them an ambition for a
richer and fuller life and developing the capacitates of an individual so that
he can master matters for himself.
3.4.3 Implementation of the Programme :
The Community Development Progra mme was launched on 2nd October,
1952, with 55 pilot projects on an experimental basis. The programme is
implemented in units of blocks, each block covers an area of about 400 -
500 sq. kms. with about 100 villages and population of about 1 lakh. In
order to meet the demand of the village for the extension of resources, a
less intensive scheme called the National Extension Service (NES) was munotes.in
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28 Rural Development
28 created from October 2, 1963. In both the CD and the NES, the work of
agricultural extension was a common factor, but in the former it was more
intensive.
Initially, the pattern of three stages of development of a block was
introduced. The NES represented the first or the preparatory stage that
created conditions for transition to a more intensive second stage of
developme nt. The final stage was known as the post -intensive phase. The
pattern was revised in 1959 on the recommendations of the Balwantrai
Mehta Committee. The old pattern was substituted by the two -stage
pattern. A CD block enters the first stage of intensive de velopment for five
years. On the completion of this stage, the block enters the second stage
for another 5 years with a relatively reduced budget provision. By the
time, a block completes the second stage, it becomes a permanent unit of
planning and develo pment and establishes channel for developmental
expenditure.
3.4.4 Highlights of the Programme :
The principal idea of the Community Development programme is to
change the basic attitude of the rural -folk from tradition to modernity. To
accomplish this obj ective, community development embraces all those
programmes that touch the very existence of human living for example
agriculture and related matters, irrigation, communications, education,
health, supplementary employment, housing, training and social wel fare
activities. According to the Planning Commission there are three major
activities involved in these programmes:
(i) An increase in production and employment in the agricultural sector.
(ii) The application of the principles of self -reliance and co -operation on
an extensive scale for which a variety of institutions have been set -up,
such as the provision for free education, free medical aid, sanitation
and public health measures etc.
(iii) Maximum utilisation of available manpower resources.
3.4.5 A Critically Review of the Working of the Programme :
Critics point out that the Community Development Programme has not
yielded desirable results. It is worth mentioning in this connection that for
a vast country like India with as many as 5,50,000 villages , a hoary history
and diversities pertaining to races, languages, religions and cultures, a
period of little more than five decades is insufficient to bring about any
substantial changes.
The strategy of community development programme is essentially glob al,
aiming at a uniform pattern of staffing and planning all over the country.
No attempt has been made to relate the block development plans to local
problems and needs. The spatial aspect of the rural development plan has
largely been ignored. munotes.in
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29 Approaches to Rural Development - 1 Political observers envisage that democracy as a system of governance in
India has failed miserably. Caste system prevailing in India has made a
mockery of democracy. Traditionally dominant castes have seized the
reins of power and manipulate the administrative mach inery to their
advantage.
3.5 SUMMARY Our country lives in villages so this is necessary to development of rural
areas for economic growth and development. It is perquisite of
development to development of rural areas. Government and our great
scholars in troduced various approaches of rural development. In which
approaches, Gandhian approach to rural development may be considered
as ‘idealist’. In self -sufficiency approach the Gandhian view is the village
should be self -sufficient in order to satisfy its b asic needs like clothing,
food, and other necessities are concerned. Rural reconstruction approach
indicates restructure of the villages for the total welfare of the rural
population. It is concerned with to their economic, political and social
development . community development approach to local development as a
part of the bigger scheme of planned national development. The main aims
of community development program - increase in production and
employment in the agricultural sector and the application of t he principles
of self -reliance and co -operation on an extensive scale for which a variety
of institutions have been set -up, such as the provision for free education,
free medical aid, sanitation and public health measures etc.
3.6 QUESTIONS Q1. Discuss i n detail Gandhian concept of Rural Development.
Q2. Explain concept and importance of Rural Re -construction approaches
of rural development.
Q3. Discuss various schemes which is introduced in rural Re -construction
approach & obstacles of rural Re -constru ction approach.
Q4. Critically evaluate Community Development programme of rural
development.
*****
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30 4
APPROACHES TO RURAL
DEVELOPMENT - 2
Unit Structure
4.0 Objectives
4.1 Introduction
4.2 Sectoral Approach to Rural Development
4.3 Participatory Approach to Rural Development
4.4 Area - Specific and Target Group oriented Approach
4.5 Integrated Ru ral Development and Economic Development with
social justice Approach
4.6 Summary
4.7 Questions
4.8 Reference
4.0 OBJECTIVES To know the importance of sectoral and participatory approach to
rural development.
To know the Area -Specific and Target orient ed approach of rural
development.
To know about Integrated Rural Development program.
To know about how we can achieve Economic and social justice
approach to rural development.
4.1 INTRODUCTION Rural development, over the years, has emerged as "a strat egy designed to
improve the economic and social life of a specific group of people - the
rural poor. It involves extending the benefits of development to the poorest
among those who seek a livelihood in the natural areas. The objective of
rural development encompasses improved productivities, increased
employment, higher income for target groups as well as a minimum
acceptable level of food, clothing, shelter, education and health. Growth
with social justice is the objective of Indian economic planning. Th e need
of the ours is that rural development programme must be devised to
synchronise with self -reliance and self -respect.
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31 Approaches to Rural Development - 2 4.2 SECTORAL APPROACH TO RURAL DEVELOPMENT 4.2.1 Introduction :
Sectoral development planning in individual sectors like education, health,
housing and social security are included in sectoral approach of
development. This approach advocates compartmentalization of
development in different sectors as if these are watertight compartments
and have nothing to do with each other. Its inade quacies stem from this
compartmentalized approach. Little attempts are to be made to integrate
them. By 1960’s the situation was rather critical on the food front. The
need for great concentration on food production led to strategy for locating
potential s ectors and well -endowed districts and areas capable of yielding
higher agricultural production. More attention was paid in improving
productivity per acre than on extending the acreage. Thus, the Intensive
Agriculture Development Programme (1960) (IADP) an d later in 1963
intensive Agricultural Area Programme (IAAP) were launched. Both
IADP and IAAP constituted landmarks in the development of agriculture,
indeed of the rural sector in India. The programmes placed agriculture on
a qualitatively different foot ing with wide ranging repercussions on rural
scenario. The programmes resulted in a spectacular breakthrough in total
agricultural production and productivity per hectare but at the expense of
social equality and social justice.
4.2.2 Sectoral Approach Pr ogrammes in India :
1. Intensive Agric ultural District Program (IADP):
The IADP was launched in 1960 -61 in 7 districts of the nation. They are:
1. Thanjavur (Tamil Naidu), 2. West Godavari (A. P.), 3. Shahabad
(Bihar), 4. Raipur (M.P.), 5. Aligarh (U.P.), 6 . Ludhiana (Punjab), Pali
(Rajasthan). The selected seven districts were delimited into 140
community development blocks with 14038 villages and a total gross
cropped area of about 45 lakh hectares. The following measures were
taken to accelerate the pace of agricultural development in IADP districts.
They include:
(i) Adequate and timely supply of credit through credit cooperatives,
based on farm production plans
(ii) Adequate and timely supply of inputs such as seeds and fertilizers
through cooperatives
(iii) Intensiv e crop demonstration to educate the farmers in improved
agricultural practices
(iv) Provision of adequate storage facilities for supplies
(v) Provision of transport services for the free movement of supplies
and staff munotes.in
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Rural Development
32 (vi) Arrangement for marketing of products through c ooperatives,
ensuring a remunerative price to farmers
(vii) Setting up of agricultural implement workshops, seed and soil
testing laboratories and implementation of local works programs
which directly help boost agricultural productions.
(viii) Formulating village pla ns for increased production
(ix) Monitoring and evaluation of the program from its initiation
Evaluation of IADP:
An evaluation of the performance of IADP from its inception in 1960
through 1967 -68 revealed that effective application of improved
agricultural practices, supported by institutional services, did help to
putting the traditional agriculture on high growth -high yields -trajectory.
Besides, concentrated efforts, effective use and better management of
resources did help small, medium and large farmers reap richer harvests.
Though the IADP model was not extended to more than 300 blocks in the
16 districts in the country, it did pave the way for implementation of
Intensive Agricultural Area Program, Intensive Cattle Development
Program etc.
1. Intensive Agricultural Area Program (IAAP) :
Encouraged by the positive impact of the IADP, the IAAP was launched
in 1964 -65 for intensive development of important crops like wheat,
paddy, millets, pulses, cotton, etc. in 114 selected districts. The criteria
applied in IADP was adopted to select IAAP districts. The Major objective
of IAAP was to bring about substantial increase in agricultural production
within a short period of time, by the application of intensive package
approach in favourable regions. It is assum ed that if higher level of
productivity is achieved in selected areas by using package of modern
practices, it will have ‘spread effects’ on neighbouring areas also,
conducive to higher levels of agricultural productivity in different areas.
The limited su pplies of inputs and inadequate technical staff did limit the
scope and achievement of IAAP.
2. Intensive Cattle Development Program (ICDP) :
ICDP was launched in 1965 the program was designed to provide
cattle owners a package of improved practices and en visaged
intensive coverage of 1 lakh cows and buffaloes which can be bred for
achieving marked impact on milk production.
The ICPDs were located in selected areas with good potential and
conditions to respond to cattle development programmes.
The Nation al Commission on Agriculture (1976) recommended that the
future cattle and buffalo development should focus on increasing milk
production and improving the work efficiency of buffalos through planned
breeding system. The task of cattle development, with co llection, munotes.in
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33 Approaches to Rural Development - 2 processing and marketing should be in the shape of an integrated project.
The Sixth Plan had the target of setting up 139 Intensive Cattle
Development Projects with the objective of improving the quality of
breeding, financing for purchase of cat tle, supply of improved fodder, etc.
Later the GOI modified the programme and started implementing the
National Project for Cattle and Buffalo breeding since 2000.
4.3 PARTICIPATORY APPROACH TO RURAL DEVELOPMENT 4.3.1 Introduction :
“Participatory developm ent is a process through which stakeholders can
influence and share control over development initiatives, and over the
decisions and resources that affect themselves” (ADB, 1996).
A process to engage local populations in development projects.
Participatory development (PD) uses local decision making and capacities
to steer and define the nature of an intervention. Its aim at achieving a
localized capital accumulation process based on the skills development
and local resources generation. The essential featu re of PD is social
mobilization. It gives a new self -confidence through which the community
can engage in more ambitious projects involving collective action and
management.
4.3.2 Scope and Applications of Participation :
Participation at the micro level of projects such as project planning and
design decisions, project implementation, monitoring and evaluation.
Participation at the macro level, for instance, participatory poverty
assessments (PPAs) are designed to influence policy particularly in
relation t o development and poverty reduction strategies. Between the
micro and the macro level, a number of exercises in participation at an
intermediate or meso level such as participatory budgeting in local
governments and various forms of territory -based rural d evelopment.
4.3.3 Types of Participation :
1) Passive Participation:
People are told what is going to happen or has already happened. Top
down, information shared belongs only to external professionals.
Information giving People answer questions posed by e xtractive
researchers, using surveys etc. People not able to influence the research.
Consultation People are consulted and external agents listen to their views.
Usually externally defined problems and solutions. People not really
involved in decision maki ng. Participation by material incentives
Provision of resources, e.g. labour. Little incentive to participate, for
example farm research, some community forestry.
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Rural Development
34 2) Functional Participation:
Groups are formed to meet predetermined objectives. Usually do ne after
major project decisions are made, therefore initially dependent on
outsiders but may become self -dependent and enabling. Interactive
Participation Joint analysis to joint actions. Possible use of new local
institutions or strengthening existing on es. Enabling and empowering so
people have a stake in maintaining structures or practices. Self -
Mobilization Already empowered, take decisions independently of
external institutions. May or may not challenge existing inequitable
distributions of wealth and power.
Participatory Rural Appraisal (PRA) and Rapid Rural Appraisal (RRA) To
enable people so that they can express and analyse the realities of their
lives and conditions, to plan themselves what actions to take, and to
monitor and evaluate the results. The difference is that PRA emphasizes
processes that empower local people, whereas RRA is mainly seen as a
means for outsiders to gather information.
4.3.4 Key Elements & Implementation of Participatory Development
Process :
Growth of consciousness and gro up identity. The realization of the
creative potential of the poor. Empowerment: The process of
reconstructing a group identity, raising consciousness, acquiring new skills
and upgrading their knowledge base. Participation: Power to break the
vicious circl e of poverty.
Variations of Participatory Development Manifestations
Enabling "mutual learning" to enhance “communication, listening and
learning between development workers and those they serve.
Implementation
1) Information -sharing tools: News and updates v ia media
2) Consultation tools: Discussion forums, debates, focus groups etc.
3) Collaborative planning tools: Establishment of local -level planning
committees.
4) Benefits High start -up cost but less expensive and more sustainable in
the long run.
5) More relevant to local populations than traditional development
projects.
6) Addressing local needs Criticisms
7) Costly and slow
8) Smaller target population than traditional development munotes.in
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35 Approaches to Rural Development - 2 9) Treating everyone same in the communities
10) Participatory Approaches to Rural Poverty Alleviati on Diagnosis/
project identification, community planning, and formulation.
Diagnosing the situations that give rise to problems, setting priorities
for their resolution, identifying and formulating project interventions
that may help solve some of those p roblems. Research and extension,
innovation, knowledge
The research and development realm consist of co -creative processes
to identify needs and opportunities, generate new information and
innovations, consolidate them with existing practices, and then
translate them into learning objectives and activities for enhanced
performance.
11) Natural resource management - Natural resource management
development is a main area of application of participatory approaches
to help poor in managing the natural resources av ailable to them.
Governance and Decentralization.
Good governance makes it possible for citizens, individually or in
groups, to articulate their interests, exercise their legal rights and
negotiate their differences.
Within the broad area of governance, decentralization, which brings
decision -making closer to the local level, is potentially important to
participation, if it is done well, lead to more responsive government
and new opportunities for citizens to participate.
Check Your Progress :
1. What do you understand by Intensive Agricultural District
Programme. (IADP)
2. What is Intensive Agricultural Area Programme?
3. Explain the types of Participation. munotes.in
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Rural Development
36
4. What are the key elements of participatory Development process?
4.4 AREA - SPECIFIC AND TARGET GROUP ORIENTED APPROACH 4.4.1 Area -Specific Approach :
This approach contemplates that development of an area depends not only
on the development of an adequate infrastructure network but also the way
factors of the l ocal economy are activated around the production
infrastructure. In other words, for development of an area, spatial and
functional integration is necessary. Thus, while rural growth centres
provide ideal locations for the provision of infrastructural faci lities, their
hinterlands are regarded as basic planning units for integrated multi -
sectoral planning to achieve integrated development of an area. The
approach, while taking area poverty into consideration, provides a balance
between various sectoral acti vities as well as spatial pattern of growth;
however, it does not ensure that economic growth is being shared by all
classes and communities of the rural areas.
Under this approach specific schemes were introduced after taking into
account the quality of the soil, climatic conditions of a specific area. These
schemes were:
1. Drought Prone Areas Programme:
Drought Prone Area Programme (DPAP) is one of the area development
programmes launched by the Government in 1973 -74 to tackle the special
problems face d by those fragile areas which are constantly affected by
severe drought conditions. The basic objective of the programme is to
minimise the adverse effects of drought on production of crops and
livestock and productivity of land, water and human resources ultimately
leading to the drought proofing of the affected areas. The programme also
aim to promote overall economic development and improving the socio -
economic conditions of the resource poor and disadvantage sections
inhabiting the programme areas, thr ough creation, widening and equitable
distribution of resource base and increased employment opportunities.
2. Intensive Agricultural Area Program:
Here, the main focus was on the intensive development of important crops
like wheat, sugar, paddy, sugarca ne, cotton etc. Roughly about 20% to
25% of the nation's total cultivated area was selected for intensive
agricultural development. The scheme also promoted the use of latest munotes.in
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37 Approaches to Rural Development - 2 technology, fertilizers, improved quality of seeds etc. in order to increase
the agricultural productivity.
3. Desert Development Program:
The main aim of this scheme was to control the spread of desert area and
to create a conducive environment which can help in raising both the
production level as well as the employment level. To ac hieve the said
motive groundwater development was undertaken, along with these
measures like construction of water storage structures, afforestation,
shelter belt plantations and grass stabilization were also undertaken.
4. Pradhan Mantri Gram Sadak Yojana :
PMJY was launched on 25th December 2000. It is a fully funded scheme
to provide good all -weather roads in rural areas of the country. The
programme envisaged connecting all villages with a population of 200
person and above.
4.4.2 Target Group Oriented Approach :
In order to accommodate the lagging sectors/regions rural development
was reconceptualized to highlight the improvement of the social and
economic life of a specialized group of people. The target group
comprised of marginal and small farmers, l andless agricultural labourers
for whom special programmes such as Small Farmer Development
Agency 47 (SFDA) and Marginal Farmers Development Agency
(MFALDA) were started. It was noticed that the target group approach
showed a better result where informati on facilities were satisfactory and
administrative and organizational arrangements were reasonably strong.
This approach was for the correction of regional imbalance. In this
connection, mention may be made of Tribal Area Development
Programme (TADP, 1972) , Hill Area Development Programme (HADP,
1974 -75), Drought Prone Area Programme (DPAP, 1970), Desert
Development Programme (DDP, 1977 -78), and Command Area
Development Programme (CADP, 1975). These programmes were fairly
successful in terms of implementati on.
4.5 INTEGRATED RURAL DEVELOPMENT AND ECONOMIC DEVELOPMENT WITH SOCIAL JUSTICE
APPROACH 4.5.1 Integrated Development Approach :
In the context of problems in the area development approach to tackle the
problems of rural poverty, a new strategy of develop ment, i.e. the
integrated development approach has been developed because the area
development approach by and large failed to address the question of
inequalities in the distribution of employment, incomes and assets. A mere
geographical emphasis, as is t he case with the area development approach,
has been found to be inadequate in solving the problems. The Indian
economy and social structure are characterized by widespread poverty, munotes.in
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Rural Development
38 poor health conditions, illiteracy, exploitation, inequitable distribution of
land and other assets and lack of infrastructure and public utilities (roads,
communications etc). Clearly, this means that the problem requires an
approach that will take into account all these factors in devising a
comprehensive strategy to further r ural development. The concept of
“integrated rural development” came into vogue with the need for a
multipurpose thrust to rural planning. It stresses that various facets of rural
development, which have an impact on rural life, are interrelated and
cannot be looked at in isolation. Thus, an integrated approach towards
rural development is essential. The various dimensions of rural life -growth
of agriculture and allied activities, rural industrialization, education,
health, public works, poverty alleviation and rural employment
programmes, all form a part of an integrated approach to the problems of
rural development.
4.5.2 Economic Development with Social Justice Approach :
The idea of social justice is that each person should have equal access to
justice, e ducation, health, well -being, privileges, and opportunity
regardless of their political, economic, religious, or caste conditions.
According to the current data 2020, about 69% of India’s population lives
in villages and the incidence of poverty is much hi gher in villages – about
53% of the rural population. Rural poverty is so prevalent, that the
majority of the initiatives are aimed at helping people in rural regions.
Poverty reduction is also difficult in rural regions owing to a variety of
physical and infrastructure constraints. The aiding programs are mostly
divided into these categories - Wage -earner program, Programs for self -
employment, Program for food security, Programs for social security, Job -
training program in India etc.
Some of the Govt. Ini tiatives that Help to Reform Economic Conditions of
Rural Areas:
1. Jawahar Gram Samridhi Yojana (JSY):
On April 1, 1999, it began. The development of rural regions was the
primary goal of this initiative. Infrastructure such as roads connecting the
hamle t to different places, as well as other social, educational (schools),
and infrastructure such as hospitals, made the village more accessible. Its
secondary goal was to provide long -term paid employment. This was
exclusively supplied to households that wer e BELOW THE POVERTY
LINE.
2. National family benefit scheme (NFBS):
His program began in August of 1995. The state government is funding
this program. After 2002 –03, it was moved to the state sector program. It’s
part of the department of community and ru ral affairs. In case of the death
of the primary breadwinner, this program provides a one -time Rs 10,000/ -
amount to that family, irrespective of the cause of death. A breadwinner is
a person above the age of 18 who makes the most money for the family
and ensures that the family survives. munotes.in
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39 Approaches to Rural Development - 2 3. Annapurna:
The government began this program in 1999 –2000 to give meals to older
persons who are unable to care for themselves, are not covered by the
National Old Age Pension Scheme (NOAPS), and have no one in their
community to look after them. This program will offer qualified older
adults 10 kg of free food grains per month. In the years 2000 -2001, a total
of 100 crores was set aside for this program. They primarily target
‘poorest of the poor and ‘indigent elderly people’ groups.
4. Pradhan Mantri Gramin Awaas Yojna:
This plan is intended to provide homes to everyone. It all started in 1985.
It intended to build 20 lakh housing units, 13 lakhs of which would be in
rural regions. This plan will also provide individu als with low -interest
financing to build dwellings. It began in the years 1999 –2000. This project
received 1438.39 crores in 1999 –2000, and roughly 7.98 lakh units were
developed. This project had a government outlay of 1710.00 crores in
2000 -01. It enhanc ed the health, primary education, drinking water,
housing, and road conditions in rural regions.
5. Mahatma Gandhi National Rural Employment (MNREGA):
On September 7, 2005, the Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA) was notified. The MGNREGA has resulted
in the world’s largest employment program. It is unlike any previously
paid employment program in terms of scope, architecture, and focus. It has
a unique and unparalleled bottom -up, people -centred, demand -driven, self -
selecting, rights -based design.
The MGNREGA guarantees paid work as a legal right. It is a demand -
driven program in which the provision of employment is prompted by
wage seekers’ demand for work. Both in situations of inability to deliver
work on demand and delays in payment of remuneration for labour
completed, there are legal provisions for allowances and compensation. It
is the largest social assistance program in the world. The initiative has cost
3.14 lakh crores in the previous ten years. A total of 1980 million person -
days of employment were created. Several lakhs of villagers have
undoubtedly been lifted out of rural poverty as a result of the initiative.
“Justice in terms of the distribution of income, opportunities, and
advantages within a society” is how soc ial justice is described. This is
frequently accomplished through institutions or services that aim to ensure
that everyone has equal access to the advantages of social cooperation
while also preventing socioeconomic inequality.
A government is made up of a collection of persons that are in charge of
governing a state. As a result, each country’s government should act
wisely in the interests of the community’s growth. Social welfare is a
policy that focuses on the overall well -being of society. The governme nt
implements several programs as a result of these changes in order to
provide social welfare and economic equality. munotes.in
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Rural Development
40 Check Your Progress:
1. Write name of various specific schemes which is introduced under
area specific programme.
2. Discuss T arget Group Oriented Approach of rural development.
3. Write name of various schemes which is introduced under Economic
Development with Social Justice Approach of rural development.
4.6 SUMMARY From the point of view of sectoral divisi on these programs were started.
Keeping in mind the different problems in different areas individual
programs for different areas was started instead of implementing a single
program all over the country and through this the problems in the rural
areas wer e solved. Participatory approach of rural development is a
process to engage local populations in development projects. Area specific
approach of rural development is related to improve infrastructure in rural
area so that unemployment problem and poverty problem in rural areas
can be solved. And some programs are related to economic growth and
development. Development of rural areas has always been one of the
paramount concerns of the various programs through five years plans.
Several rural development pro grams were launched specially to provide
job opportunities to raise their income, improve their standard of living by
eradicating poverty. These programs were designed to create socio -
economic infrastructure necessary for rapid development of rural areas
and to increase income of individual rural people by providing productive
job. These programs provided certain economic and social infrastructure,
ensuring facilities like roads, electricity, transport, drinking water, medical
care, primary -school etc. They have acted as a catalyst in bringing socio -
economic changes in rural life. Programs like IADP, IAAP, DPAP, PMJY,
MNREGA etc. munotes.in
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41 Approaches to Rural Development - 2 4.7 QUESTIONS Q.1 Explain in detail, Sectorial Approach to Rural Development.
Q.2 Write about Participatory Approach to Rural Development .
Q.3 What do you understand by Area specific & Target group Approach
to Rural development?
Q.4 Explain Integrated Rural development & Economic Development
with social justice approach to rural development.
4.8 REFERENCE Indian Economy - Datt & Sundharam, Rural Development in India -
Vasant Desai, Rural Development - Satyasundaram.
*****
munotes.in
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42 MODULE 3
5
DIVERSIFICATION OF RURAL
ECONOMY - 1
Unit Structure
5.0 Objectives
5.1 Introduction
5.2 Livestock economics
5.3 Dairy Development
5.4 Social Forestry
5.5 Summary
5.6 Questions
5.7 Reference
5.0 OBJECTIVES To know the importance of livestock and Dairy farming in India.
To know about Social Forestry
To know Importance of livestock, dairy farming and social forestry
for rural development
5.1 INTRODUCTION India has been an agricultural country, and it is because of this reason
livestoc k and dairy farming plays a very important in complementing the
main agricultural sector. Livestock and dairy farming help in completing
the circle of the primary sector which is a very important base for the
development of the secondary sector in our coun try. Social forestry,
livestock and dairy farming have come a long way in the rural
development of India.
5.2 LIVESTOCK ECONOMICS Indian economy has predominantly dominated by the primary sector
whether it is agriculture or cattle farming. The main reason for the same
has been the low literacy rate, lack of infrastructure, etc. This is the main
reason why livestock economics has played a crucial role in India.
munotes.in
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43 Diversification of Rural Economy - 1 5.2.1 Contribution of livestock in Indian Economy :
The livestock offers food and non -food it ems to the people.
1. Food:
a) The livestock offers food items such as eggs, milk and meat for
human consumption. India is ranked first as milk producer in the
world.
b) India is producing about 176.34 million tons of milk in a year (2017 -
18).
c) Similarly, it i s producing about 95.22 billion of eggs, 7.70 million
tonnes of meat on annual basis.
d) The value of output of livestock sector at current prices was Rs
9,17,910 crores at current prices during 2016 -17 which is roughly
about 31.25% of the value of output fr om agricultural and allied
sector. At constant prices the value of output from livestock was about
31.11% of the value of the output from total agricultural and allied
sector.
e) During the financial year 2017 -18, the total fish production in India
was estim ated at 12.61 million metric tonnes.
2. Fibre and skins:
The livestock also contribute to the output of wool, hair, hides, and pelts.
Leather is the utmost important product which has a very high export
potential. India is manufacturing about 41.5 million kg of wool per annum
during 2017 -18.
3. Draft:
Bullocks are the backbone of Indian farming. Despite lot of developments
in the use of mechanical power in Indian agrarian operations, the Indian
agriculturalist particularly in rural areas still rely upon b ullocks for
numerous agricultural operations. The bullocks are saving a lot on fuel
which is a necessary raw material for using mechanical power like
tractors, combine harvesters etc. Pack animals like camels, horses,
donkeys, ponies, mules etc are being w idely used in transportation of
goods in different parts of the country in addition to bullocks. In situations
like hilly terrains mules and ponies serve as the only substitute to transport
goods. Similarly, the army has to depend upon these animals to tra nsport
numerous items in high areas of high altitude.
4. Dung and other animal waste materials:
Animal waste and dung are used as a very good agricultural manure which
is worth in several crores in money terms. Additionally, dung and bio gas
are also used as fuel, and even for construction purposes it is used by the
poor man as cement (dung). munotes.in
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44 Rural Development 5. Storage:
Livestock are compared to 'moving banks' as because of their capability to
move off during emergencies. They serve as wealth and in cases of
landless far ming labourers many times it is the only capital resource they
hold. Livestock serve as an asset and in case of crises they serve as
guarantee for taking loans from the local sources such as money lenders in
the villages.
6. Weed control:
Livestock also s erve the purpose of being used as biological control of
brush, plants and weeds.
7. Cultural:
Livestock act as a security for the owners and also add to their self -respect
particularly when they are owning esteemed animals such as pedigreed
bulls, dogs an d high yielding cows/ buffaloes etc.
8. Sports / recreation:
Animals like cocks, rams, bulls etc are often used by the people for
competition and sports. Although there is a ban on these animal
competitions the cock fights, ram fights and bull fights (jal li kattu) are
quite common during festive seasons.
9. Companion animals:
Dogs are known to be the most faithful friend of man and are being kept
as a companion animal since ancient times. Ever since the culture of
nuclear family has increased the aged par ents are forced to keep pets like
dogs, cats, etc to safeguard themselves against the danger of unknown
human beings.
5.2.2 Role of livestock in farmer's economy :
The livestock plays a vital role in the agriculturalists' economy. The
agriculturalists in In dia keep mixed agricultural system i.e. a blend of crop
and livestock where the production of one enterprise becomes the raw
material of another enterprise thereby realize the resource effectiveness.
The livestock serve the agriculturalists in different wa ys.
1. Income:
Livestock may be a source of subsidiary income for many families in India
especially the resource poor who maintain few heads of animals. Cows
and buffaloes if milking will offer regular income to the livestock farmers
through sale of milk. Animals like sheep and goat function as sources of
income during crises to meet demands like marriages, treatment of sick
persons, children education, repair of homes etc. The animals also
function as moving banks and assets which provide economic securit y to
the owners. munotes.in
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45 Diversification of Rural Economy - 1 2. Employment:
A huge population in India being illiterate and unskilled depend upon
farming for their livelihoods. But agriculture being cyclical in nature could
provide employment for a maximum period of 180 days in a year. The
landless and marginal people depend upon livestock for using their labour
during lean farming season.
3. Food:
The livestock products such as eggs, meat and milk, are a vital source of
animal protein to the members of the livestock owners. The per capita
accessib ility of milk is around 375 g / day; eggs is 74 / annum during
2017 -18 as per the available data.
4. Social security:
The animals give social security to their owners in relation to their status
in the society. The families particularly the landless which own animals
are better positioned than those who do not own the same. Gifting of
animals during marriages is a very common thing to happen in different
parts of the country. Rearing of animals has been a part of the Indian
culture since ancient times. Ani mals are used for variety of socio religious
functions. cows for house warming ceremonies; rams, bucks and chicken
are sacrificed during festive seasons; bulls and cows are worshipped
during various religious functions. Many owners develop emotional
attach ment with their animals.
5. Draft:
The bullocks are the main support of Indian farming. The farmers
especially the marginal and small rely upon bullocks for ploughing their
fields, carting and transport of both raw materials as well as the final
product.
6. Dung:
In villages dung is used for numerous purposes which include plastering
material (poor man’s cement), fuel (dung cakes) and fertilizers (farm yard
manure).
5.3 DIARY DEVELOPMENT 5.3.1 Introduction :
Apart from being a significant sector internatio nally, dairying is equally
significant in emerging economies like India, for providing nourishment
support, dropping rural poverty, inequality, confirming food security for
millions of rural families, and increasing economic growth, principally in
rural ar eas.
In the decades of 1950s and 1960s, India was a milk deficient country,
relying generally on imports. In 1965, the government of India established munotes.in
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46 Rural Development the National Dairy Development Board to take care of India’s dairy sector
development. In 1970, the gove rnment started Operation Flood (OF), the
world's largest dairy development program, whose goal was increasing
milk production in the country.
By 1998, India had overtaken the US to become the largest milk
manufacturer on global basis, and it contributed 22 per cent of the
worldwide milk production in 2018. Between 1991 and 2018, the per
capita accessibility of milk increased from 178 (gm/day) to 394 (gm/day).
During this time period, milk production in India increased from 55.6
million tonnes to 187.7 milli on tonnes, growing at rate of 4 per cent
compounded annually.
As per the NITI Aayog working group 2018 report, milk production in
India will rise to around 330 million tonnes in 2032 -33, and milk supply
will surpass milk demand by 38 million tonnes in 2032 -33. As per the
National Action Plan on Dairy Development vision 2022 report, it is
proposed to increase milk attainment and processing through setting up of
village -level dairy infrastructure. Under this plan, organised milk
management is to be enlarged t o 41 per cent by 2022 and to 50 per cent by
2023 -24. Milk attainment by cooperatives will increase from 10 per cent
in 2020 to 20 per cent in 2023, and milk attainment by the private sector
will be improved from 10 per cent to 30 per cent in the same time frame.
5.3.2 Significance of Dairy Farming in Indian Economy :
The dairy sector is one of the critical sectors in the Indian economy that
not only generates employment for millions of rural families but also
contributes to the economy. Among the livestock p roducts, milk consists
of the largest share, and it accounted for 67.2 per cent of the livestock
sector in 2017.
Besides, there is an interesting note here that milk and milk products
contributed more than 20.6% of the joint production of paddy, wheat and
pulses in 2017. Yearly, 8.4 million agriculturalists rely on the dairy sector
for their source of revenue, out of which 71% are women (Agriculture
Skill Council of India). Additionally, in a year, crop output employs the
rural labour force for 90 to 120 da ys, but dairy gives another employment
opportunity throughout the 365 days of the year.
India is independent in milk production because 73 million dairy
agriculturalists are involved in the dairy sector, particularly women.
Concerning aids to the agricult uralist, around 60% of the consumer price
from milk goes to the agriculturalist, which is the maximum among main
milk-producing nations (International Farm Comparison Network, Dairy
Report, 2018). The information show that 10 States in India produce 81%
of the milk, and the rest of the States and Union Territories produce the
balance 19%.
Similarly, only nine States have attained per capita accessibility of milk at
par with the national level. The government needs to plan a suitable dairy munotes.in
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47 Diversification of Rural Economy - 1 development policy for increasing milk production in probable districts
and States. Therefore, dairy elevation among small and landless farmers is
essential to upsurge the availability of milk, and it will also help reduce
nourishment related problems in milk shortfall regi ons of the nation.
5.3.3 Dairy business In India :
The recent Covid -19 pandemic has impacted different segments of the
economy and has brought down the job openings, mainly for migratory
workers. India has 45.36 crore internal migrants, which includes both
within -State and inter -State migrants; the latter have been hit hardest, due
to pandemic enforced restriction on inter -State movements these are the
details as per the 2011 census. When these migratory workers return to
their homes, this reverse migration will generate new challenges for them,
as the deficiency of employment prospects at the rural level will make
their life more challenging.
This is a brilliant opening for the State governments to encourage dairy
profession in those districts where milk out put and milk obtainability are
lower than the national average. They can simplify the promotion of the
cooperative model in these regions, to channelise and formalise milk
attainment, which will aid millions of people to be gainfully employed.
They can tra nsmit funds from different central government schemes like
‘Dairy Entrepreneurship Development Scheme (DEDS), National
Programme for Dairy Development (NPDD), and DIDF (Dairy Processing
& Infrastructure Development Fund), for the same; a budget provision o f
3,289 crore was made wholly for Animal Husbandry and Dairying, for
the year 2020 -21.
The Finance Minister recently declared an expenditure to the tune of
Rs.15,000 crore for Animal Husbandry Infrastructure Development Fund,
which will be utilized for su pporting private investments in dairy
processing and value addition, and cattle feed infrastructure. This will not
only help increase the local output of the goods and services but will also
help in increasing the consumption of locally produced commoditie s and
will also assist in making the nationwide consumer “vocal for local”; thus,
taking India forward on the path of self -sufficiency.
5.3.4 Role of technology in Diary Business :
This lockdown has gradually recognized the role of technology in the
farming and cattle breeding sector be it Ninja cart (tech -driven supply
chain platform) which is linking thousands of manufacturers directly with
patrons or Amul which has increased both its milk obtaining (15 per cent)
and processing during the lockdown period. Technology has played a
critical role in changing these uncertain times into openings for growth.
Thus, apart from constructing milk procurement infrastructure in milk
shortage States and districts, efforts should also be made for the
infiltration of appro priate technology in these regions. munotes.in
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48 Rural Development This Milk Day, let’s hope to marshal in a new age of progress for the dairy
sector, which will decrease poverty, joblessness, and disparity in the most
underprivileged regions of the nation. Furthermore, strengthening
cooperative milk profession across these areas will help generate another
service opportunity, particularly for women and economically deprived
communities. A thriving dairy sector will aid rural India become self -
reliant and will also contribute to doubling agriculturalists' income.
Check Progress
1. Write contribution of livestock in Indian Economy.
2. Discuss role of livestock in farmer's economy.
3. Explain significance of diary farming in Indian economy.
5.4 SOCIAL FORESTRY 5.4.1 Introduction :
Widespread loss of tree vegetation in the emerging world within the past
few decades led to the development of social forestry. It was a reply to
meet the growing scarcity of biomass and to save the environment.
Several nations in the emerging world launched this type of program to
meet the demands of an increasing population for fuel, fodder and timber.
Social forestry was new tactic to solve the problem of fuel shortage with
the involvement of rural people who would plant, tend and ma intain trees
by themselves. The type planted would be of their choice.
In our nation the concept of social forestry is quite old. It is found in the
moral teachings of Buddha about 2500 years ago. Lord Buddha addressed
that every good Buddhist should pla nt one tree and look after it over five
years so that it grows to a full tree and in this way, he should plant about 5
trees during his life span. munotes.in
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49 Diversification of Rural Economy - 1 The Great Emperor Ashoka is given the credit to have got planted shady
trees and fruit trees along the roads ides for the assistance of travellers.
During early period of British rule, need for industrial development and
communication required timber from the forests. Attempts made by the
British were simply to restrict and define forests for their industrial ne eds.
No importance was given to important role of trees to the local population.
Afforestation in the period after independence can be divided in to three
phases. In the first phase, during 1950's saw the beginning of ‘Van
Mahotsav’ however it failed to a ttract attention mainly due to the
unawareness at all levels. In the second phase, farm forestry was initiated
in some states in the 1970's. The third phase was the period when social
forestry program actually took off in eighties with huge programs and
determined targets.
5.4.2 Concept of social forestry :
The word Social forestry was invented by Westoby and used in the Ninth
Commonwealth Forestry Congress in 1968. According to Prasad (1985)
“Forestry outside the typical forests which mainly targets at p roviding
regular flow of goods and services for the benefit of the people ". This
definition implies th at the manufacture of forest goods for the
requirements of the local people is Social forestry. Social forestry is
"social‟ in the sense of being socially prepared, that is, flexible, active,
and reactive to the context and social environment. Social for estry plans
take changing forms depending on the particular (economic, cultural,
ecological, political) environment and remain dynamic because of the
"social creativity‟ of the contributing interest groups determining this
forest management. Social possib ility and social amalgamation as
described above are besides only coming when social forestry reacts
flexibly to the development of new groups of interests, to alterations in the
pressure for exploitation and to changes in frameworks.
Simply it is the pra ctice of forestry of the public, forestry by the public
and forestry for the public. The social forestry practices include the
following:
1. Raising wind breaks on dry farm lands.
2. Planting shelterbelt.
3. Planting along roadsides.
4. Planting in ru ral areas common lands and waste lands.
5. Planting along the railway tracks and banks of a canal,
6. Planting small lumber lots in farmlands if it is large.
7. Planting foreshore areas of irrigation tanks.
8. Reclamation of highly degraded and eroded soils.
9. Afforestation of command areas of irrigation projects. munotes.in
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50 Rural Development 5.4.3 Objectives of social forestry :
Social forestry, programs that have been commenced across the country
have made a substantial difference in the overall forest cover in a very
short duration of time. Afforestation outside the conservative forest area
for the benefit of village and urban communities. The objectives of Social
forestry adopted by the Commission (1976) were created on the economic
needs of the community intended at impro ving the conditions of living.
They are:
1. To achieve the basic necessities such as fuel, fodder, small wood,
supplementary food and income from excess forest products to the
village area and substitution of cow dung.
2. To generate job opportunities and to i ncrease the family income
substantially for lessening poverty.
3. To develop cottage industries in village areas.
4. To organize them in such manner which will help them in their
struggle for socioeconomic development and to integrate economic
gains in the dis tribution of their benefits to the rural society.
5. To provide friendly atmosphere and conserve their social identity as
their life is related to forest.
6. To brainwash the value of rural level self -reliance and self -
management in the manufacture as well as distribution of forest
products with social justice.
7. To convert the villagers into a closely -knit community and an
operative functional unit of society which can form its own destiny.
8. To play an important role in the repossession of degraded lands,
preservation of soil and moistness, improvement of agricultural
production and prevention of environmental deterioration.
9. To surge the normal beauty of the landscape, make entertaining
forests for the advantage of rural and urban population.
10. To protect the farming fields against wind speed and natural calamity.
11. To resolve the food grain problem of the village area to a great extent.
Certain edible fruits like palms, coconut, mango and cashew have
high nourishing value and grow under social forestry programm e.
12. To use the available land according to it carrying capacity.
5.4.4 Scope of the social forestry :
The key scopes of the social forestry are
1. Street planting in cities.
2. Establishment of manufacturing shelter belt. munotes.in
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51 Diversification of Rural Economy - 1 3. Management of town parks an d wild life parks.
4. Urban composites management and efficient recycling.
5.4.5 Components of social forestry :
The scope or components of social forestry defined by the Commission
includes reforestation in degraded forests, recreation forestry, extens ion
forestry and farm forestry.
1. Farm forestry :
Farm forestry is the term given to programs which endorse viable tree
growing by farmers on their own land. Farm forestry was defined by NCA
(1976) as the practice of forestry in all its aspects in and aro und the
farmsteads or rural lands united with other farm operations.
2. Extension forestry :
Extension forestry is the exercise of forestry in areas lacking in tree
growth and other flora situated in spaces away from the conservative
forest areas with th e objective of increasing the space under tree growth. It
includes the following.
3. Mixed forestry :
Mixed forestry is the exercise of forestry for growing fodder grass with
dispersed fodder trees, fruit trees and fuel wood trees on appropriate
wastelan ds, panchayat lands and village commons
4. Shelterbelts:
Shelterbelt can be defined as a belt of trees and or shrubs sustained for the
motive of shelter from wind, sun, snow drift, etc.
5. Linear strip plantations :
Linear strip plantations are plantati ons of fast -growing species on linear
strips of land
6. Rehabilitation of degraded forests :
The area under forests facing ecological degradation needs immediate care
for ecological restoration and for meeting the socio -economic needs of the
people livin g in and around such areas.
7. Recreation forestry :
Recreation forestry is the exercise of forestry with the objective of
growing up flowering trees and shrubs primarily to serve as recreation
forests for the urban and rural people. This kind of forestr y is also known
by the name of Aesthetic forestry which is defined as the exercise of
forestry with the objective of evolving or preserving a forest of high scenic
value. munotes.in
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52 Rural Development 5.4.6 Benefits of social forestry :
1. Increase the supply of fuel wood and fodder.
2. Generate rural employment
3. Maintain ecological balance
4. Appropriate use of wastelands
5. Promote village and cottage industries
6. Induce environmental and tree consciousness among people
7. Relieve pressure from natural forests
8. Stabilize agricultural production
Increase the supply of fuel wood and
5.4.7 Achievements of social forestry :
1. Increased area under tree cover.
2. Increased production of industrial timbers, firewood and fodder
3. Increased employment opportunities
4. Increased employme nt opportunities for the rural poor.
5. Improvement in environment
6. Enhance the conservation of soil and water table
Improvement in environment.
Enhance the conservation of soil and
5.4.8 Important schemes being implemented for social forestry :
1. Aerial seeding
2. Area oriented fuelwood and fodder schemes
3. Awards
4. Categorization and identification of wastelands
5. Decentralized nurseries program
6. Externally aided projects
7. Grants and aids to voluntary agencies
8. Greening of Himalayas
9. Margin money assistance scheme munotes.in
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53 Diversification of Rural Economy - 1 10. Operation soil watch
11. Promotion of co -operatives
12. Rural fuelwood plantation scheme
13. Scheme on minor forest produce
14. Silvipasture scheme
15. Tree Patta Scheme
Decentralised nurseries programmes.
Externally aided projects.
Grands -in-aid to voluntary agencies.
Greening of Himalayas.
Margin money assistance scheme.
Operation soil watch.
Published by Tropical Forest Research Institute, Jabalpur, MP, India
22
Promotion of Co -Operatives.
Rural fuelwood plantation scheme.
Scheme on minor forest produce.
Silvipasture scheme.
Tree Patta scheme.
Constraints in obtaining people’s
5.4.9 Constraints in obtaining participation in Social forestry :
Antipathy to trees.
Credit schemes, market support
1. Antipathy to trees
2. Credit schemes, market support measures and tax rules.
3. Lack of appropriate technology
4. Lacking of appropriate policies and public awareness.
5. Lacking of suitable organization
6. Most people show future ignor ing behaviour munotes.in
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54 Rural Development 7. Small size of holding and land ownership
8. Social forestry generates common property resource
Check Progress
1. Write concept of Social Forestry.
2. Discuss objectives and scope of Social Forestry.
3. Write name of various schemes which is introduced under Social
Forestry.
4. Explain Benefits and Achievements of Social Forestry.
5.5 SUMMARY Livestock plays a very important role in human lives whether it is
concerned with their economic activit ies like farming or whether its
concerned with providing them with companionship is concerned. In dairy
farming too livestock plays a crucial role, dairy farming has provided
employment to millions of people with establishment of units like Amul.
Social fo restry implies that the manufacture of forest goods for the
requirements of the local people. The main idea of social forestry is to
provide employment to the people living in the forest area through use of
the forest and at the same time to see that the forest cover also increases
through the process of afforestation.
munotes.in
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55 Diversification of Rural Economy - 1 5.6 QUESTIONS Q1. Write in detail what is contribution of livestock in Indian economy
and farmer's economy.
Q2. Write a note on Dairy Business in India and explain the importance of
dairy farming in India.
Q.3 Explain the role of technology in Diary farming.
Q4. What do you understand by concept of Social Forestry? Write an
objective and scope of social forestry in India.
Q5. Explain components of social forestry in India.
Q.6 Explain benefits, achievements and constraint of Social forestry in
India.
5.7 REFERENCE Indian Economy - Datt & Sundharam, Rural Development in India -
Vasant Desai, Rural Development - Satyasundaram.
*****
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56 6
DIVERSIFICATION OF RURAL
ECONOMY - 2
Unit Structure
6.0 Objectives
6.1 Introduction
6.2 Agro -Based Industries: Problems & Remedial Measures
6.3 Role of KVIC in Rural Development
6.4 Recent Development of Science & Technology in Rural Development
6.5 Summary
6.6 Questions
6.7 Reference
6.0 OBJECTIVES To know the problems and remedial measures of agro -based
industries
To know the concept of KVIC in rural development
To know the recent development of science and technology in rural
development.
6.1 INTRODUCTI ON We are here to study the problems faced by the agro -based industries in
our country and at the same time we will also have a look at the solutions
or the remedies for such problems. At the same we will try to understand
the role played by the Khadi and Village Industries Commission (KVIC)
in the rural development. Here our focus will also be on the latest
development of science and technology and the role it plays in the rural
development of our country.
Small size of holdings and land
6.2 AGRO -BAS ED INDUSTRIES: PROBLEMS & REMEDIAL MEASURES 6.2.1 Introduction:
Agro -based industries are those in which the resources are procured from
the farming and allied sectors such as animal husbandry and dairy. The
agro-based industries are mainly reliant on the agriculture sectors for its
resources. According to the economic survey of India, through the last five
years (ending 2018 -19), the food processing industry sector has
developed at an average annual growth rate of around 9.9% which is munotes.in
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57 Diversification of Rural Economy - 2 much higher when comp ared to around 3.12% in the agricultural sector
and 8.25% in the manufacturing sector (at 2011 -12 prices). Agro -based
industry can relate the primary sector to the manufacturing sector which
will minimise the additional load on agriculture sectors. It will also
eliminate notable employment from the agriculture sector which will lead
to an inclusive development.
6.2.2 Advantages of Agro -based Industries:
Agro -based industries have numerous advantages in India because of
the following reasons:
1. Strong demand, huge population, and increasing urban and rural
income is driving the demand.
2. Policy support: Government has set an important farming export
target of $60 billion dollars by 2022.
3. Great opportunity as demand for agricultural raw materials such as
hybrid seeds and fertilizers and allied services like warehouse and
cold storage is increasing.
4. Competitive advantage as India has a high percentage of farming
land and varied agro climatic condition which inspires the farming of
the different crops which can be used as an input for the agro -based
industry.
As per the data given by the Department for the Promotion of Industry and
Internal Trade, The Indian food processing industry has attracted an
investment to the tune of 10.2 billion US dollars between April 20 20 and
September 2020. It is also a sunrise sector which has very large scope to
improve the socioeconomic status of the poor people. Agro -based
industries provides employment to 3% of the workforce only.
6.2.3 Types of the agro -based industry :
1. Textile in dustry: This industry was having a market worth of 108 US
billion dollars in 2015 -16 which was expected to achieve 225 US
billion dollars by 2023. Its growth rate is estimated to be
approximately 9% per year.
2. Sugar Industry: The production of sugar in Indi a now stands at 29
million metric tons which is approximately 17 percent of the total
world production. Recently India has become one of the largest
manufacturers of sugar in the world.
3. Vegetable Oil Industry: Vegetable oil production in India is nearly
5% of the world's total vegetable oil production. India is also the
largest consumer of edible oil. Despite the fact that we are the largest
manufacturer, we are unable to meet our domestic demand of 23
million tonnes and hence the additional required oil i s imported from
the other countries. munotes.in
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Rural Development
58 4. Tea Industry: India is the second -largest manufacturer of tea in the
world, at the same time we are also the largest consumer of tea. It is to
be noted that 75% of our tea demand is fulfilled by the local
production an d the rest 25% is imported from other nations.
5. Leather Industry: India has an enormous cattle population. 13% of
the world’s leather is produced in India which creates about 20 lakh
job opportunities.
6.2.4 Importance of agro -based industries :
1. Job oppor tunities:
It has enormous capacity to give employment to the eminent employees
from the agriculture sector which can result in enhanced inclusive growth
of the agro -based sector industries.
2. Regional development:
The urban region is the driving force of the economy. However, the agro -
based industries can infuse life into the rural economy and can provide
regional balance and reduce the inequality.
3. Export promotion:
The exports can be encouraged through The Agricultural and Processed
Food Products E xport Development Authority ( APEDA ) as India is a
cultivation -based economy. It can offer a variety of agro -based products
which will lead to higher exports.
4. Industrial production:
The agricultural products are converted into the manufactured products as
many agricultural products act as a raw material for the manufacturing
sector like for example cotton for textile industry, sugarcane for sugar
industry etc. which lead to the production of the finished goods by the
industry and improves participation i n GDP.
5. Poverty alleviation:
The agro -based industries link various sectors and provide a regular source
of employment and a steady source of income to millions of households
which in turn will lead to an improvement in the overall income level of
the n ation, thereby reducing the poverty level in the nation.
6. Foreign exchange:
When there is an improvement in the exports of agricultural products or
exports of the agro -based industries it will lead to an increase in the
foreign exchange reserves of the nation.
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59 Diversification of Rural Economy - 2 7. Nutrition and food security:
When the crop start coming in different forms and varieties for the agro -
industry it also leads to a better nourishment through food protection.
8. Links the different sectors:
Agriculture sector production is conn ected to the manufacturing sector and
is also connected to the service sector through marketing and
advertisement.
9. Decrease in Post -Harvest losses:
Around 35% of food output is lost due to post -harvest losses. If a storing
facility will easily be made available for the industry then losses can be
minimised.
10. Improved shelf life:
Once the raw material becomes the finished product it can be preserved
for a long time.
11. Diversification of food choices:
When the agricultural products become input fo r the agro -based industries,
it leads to a variety of products which in turn leads to increasing range of
food choices.
12. Establishment of MSME:
The creation of new MSMEs is a must to generate a variety of agro -based
products and create job opportunitie s.
13. Increment in farmer’s income:
As the government has planned to double the income of farmers by 2022,
the agro -based industry can play an important role as farmers can provide
regular inputs in the form of raw material to these industries.
14. Contr olled food inflation:
With the availability and accessibility of choices as far as the food items
are concerned food inflation can be controlled.
15. Reduce the migration:
With the establishment of agro -based industries in the villages, a lot of job
oppo rtunities will be created there which in turn will tremendously reduce
the migration of rural labour to the urban areas in search of jobs or
employment opportunities.
The agro -based economy is the procedure in which agricultural products
are changed into a variety of foods and other forms. It is under the
importance sector of the government for development. munotes.in
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Rural Development
60 6.2.5 Challenges face by agro -based industries :
1. Seasonal in nature: As agriculture provides raw material to agro -
based industries but since agricult ure is seasonal in nature hence these
agro-based industries also become seasonal in nature, as the
availability of their raw -material is seasonal in nature.
2. Low landholding: As the landlords don't have large landholdings
their agricultural output is al so quite limited which at times may not
enough to provide input to the agro -based industries which in turn
adversely affects the productivity of the industry as a whole.
3. Perishable products: Due to poor or non -availability of cold chain a
huge wastage is generated in the products which are perishable in
nature.
4. Quality control and poor standard: Good quality is the primary
requirement for the goods to be exported, poor quality goods present a
big challenge for the them to be exported.
5. Tax and du ty: Higher rates of taxes and duties will create an unfair
business environment in fair of the huge corporates.
6. Value addition is low in India compared to other countries.
7. Skill and training are traditional so there is a need for incorporating
technology advancement, integration, and regular assessment.
8. Due to tough competition from the other neighbouring nations
there is a diversion in the Foreign Direct Investment.
9. Supply chain disruption: Due to poor connectivity and logistics
problem also , cold chain has poor availability.
10. Poor marketing and advertising: It are important to have a good
marketing and advertising strategies as poor marketing and
advertising may lead to a failure even the product quality may be of
the highest standards.
6.2.6 How to improve the Agro -based industries :
1. Bring steady growth in the farming sector so that it can supply the raw
material regularly.
2. Measures like giving judicious credit to agro -based industries make it
more viable.
3. Market restructuring should be t here to remove the middlemen from
the stock chain.
4. Expand productivity through up -to-date agricultural techniques and
the use of technology in the industry. munotes.in
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61 Diversification of Rural Economy - 2 5. Refining the marketing of cultivated products and agro -based industry
products through standardizat ion of product and quality control.
6. Bring a huge food managing program that can manage the agricultural
land to the folk and reduces weakness.
7. Shift from farming as a rural area's main source of income to the
contemporary business initiative through the in ducement of
government policy.
8. Focus on nutrient crops and food protection lead to improved health.
9. Rural obtaining system could be better with self -help groups better
example is Sudha dairy.
10. Connection between manufacture and processing lead to the sellin g of
product at a time and decreases wastage.
11. Expansion of rural or village marketplaces can help the rural economy
recover where agro -based industry plays an important role.
12. Choice of selling outside of the APMC market can break the
association of the mi ddlemen.
13. Improving warehousing like cold stores could help to preserve
perishable goods.
14. Strengthening of railway freight operation leads to fast and swift
movement of goods in lesser time.
15. Provide agriculturalists with elementary education and training to
change drastically from producer to entrepreneur.
16. Reinforce farming extension services which provide technical
information to agriculturalists about practice guidance of the use of
these inputs and services lead to an upsurge in output outcome.
17. Duty -free import and export lead to motivation in the industry.
6.2.7 Major steps taken by the Government to improve the Agro -
based Industries :
1. 100% Foreign Direct Investment is allowed so that the latest
technology as well as finances are available.
2. Food parks have been established where cluster -based approach is
included leading to the farm to the general public Agreement farming
through the land lease act offers cluster farming surges mechanization
leads to reduce wastage.
3. Combined cold storage and value addition infrastructure created.
Formed e platform to offer single window clearance. munotes.in
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Rural Development
62 4. Pradhan Mantri Kisan Sampada Yojana: It is a central sector scheme
that intends to complement agriculture, revolutionize processing and
reduce agriculture waste.
5. Various Governmen t scheme to improve Agro -based Industries: It
was formerly known as a scheme for Agro -Marine Processing and the
expansion of Agro -Processing Clusters (SAMPADA). Construction of
contemporary infrastructure, development of food processing sector,
and giving better prices to the agriculturalists. The following schemes
will be executed under it:
(i) PM – Formalization of Micro Food Processing Enterprises : The
scheme was started as a part of Atmanirbhar Bharat Abhiyan. It is to
be executed over a period of five year s from 2020 -21 to 2024 -25. The
Scheme approves the One District One Product method to gain the
advantage of scale in terms of locating of inputs, availing common
services, and marketing of products.
(ii) Operation Greens: It was started on the similar lines o f Operation
Flood to double the income of agriculturalists by end of 2022. It
intends to encourage agriculturalist producers' organizations agri -
logistics processing facilities and professional management.
(iii) Pradhan Mantri MUDRA Yojana: This program was lau nched to
give access to inexpensive credit to poor and small inexperienced
business people with the aim to provide self -employment.
(iv) Stand Up India Scheme: It is under the guidance of the Ministry of
Finance. The idea here is to encourage entrepreneurship among
Scheduled Caste/Schedule Tribe and Women.
(v) PM’s Employment Generation Programme: PMEGP is a chief
credit -linked funding program being implemented since 2008 -09
and it is extended up to 2019 -2020. It is intended at generating self -
employment prospect s through the formation of micro -enterprises in
the non -agricultural sector by helping old -style artisans and jobless
youth in rural as well as urban areas.
(vi) Zero Defect and Zero Effect (ZED) Scheme for MSMEs: The
objects are, financial backing to MSMEs i n ZED Certification
Scheme to develop an Ecosystem for Zero Defect production in
MSME. Encourage adaptation of quality systems and energy -effective
production. Empower MSMEs for manufacturing quality products.
Check Progress:
1. Write various advantages o f Agro -based industries. munotes.in
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63 Diversification of Rural Economy - 2
2. Discuss types of Agro -based industries.
3. What are the importance of Agro -based industries in India.
4. What are the challenges faced by Agro -based industry in India.
6.3 ROLE OF KVIC IN RURAL DEVELOPMENT KVIC stands for Khadi Village and Industries Commission. It was
established in the year 1957. It is a statutory body and comes under the
preview of Ministry of MSMEs.
6.3.1 Objectives of KVIC :
The major objectives of Khadi Village and Industries Commission
surrounding sel f-sufficiency and sustainability are as under:
1. To create new employment opportunities in the country and thereby
increase the employment level in the country.
2. To encourage the promotion of Khadi articles in the country.
3. To help the nation in its self -reliance or self -sufficiency objective by
providing authority to the weaker and rural sections of the society.
6.3.2 Functions Of KVIC:
The main functions of Khadi Village and Industries Commission are as
follows:
1. Its main job is to plan, promote, organize and implement programs for
the development and growth of Khadi and Village Industries (KVI).
2. Its job includes coordination with various agencies and bodies who
work for the development of various khadi and village industries
initiatives in the rural areas. munotes.in
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Rural Development
64 3. Khadi and Village Industries Commission maintains with itself a
surplus balance of raw material which can be further be encouraged in
the supply chain.
4. It helps in creation of common service facilities that are helpful in the
processing of the raw materials.
5. Khadi Village Industries Commission helps in marketing the Khadi
Village Industries products through artisans and other modes of
marketing.
6. It establishes connection with numerous marketing agencies for
increasing the sales of the Khadi Village Industries products.
7. Khadi Village Industries Commission promotes and encourages
research and development in the Khadi Village Industries sector.
8. Khadi Village Industries Commission provides solutions to the
difficulties faced by Khadi Village Industries products by encouraging
research and increasing the competitive capacity.
9. Khadi Village Industries Commission helps in arranging financial
help to the Khadi and Village Industries.
10. Khadi Village Industries Commission lays down and imposes
guidelines which are to comp lied with the product standards in order
to eliminate the production of fake products.
11. Khadi Village Industries Commission has the power to create
schemes, programs and projects relating to Khadi and Village
Industries development.
6.3.3 Progress of KVIC in India:
A major change in both Khadi production and Khadi sales can be seen
because of the following developments
1. The average Khadi production which grew at 6.52% from 2004 to
2014 has grown at a rate of 26.43% from 2015 to 2018.
2. The average Khadi sales which grew at 6.62% from 2004 to 2014 has
grown at a rate of 31% from 2015 to 2018.
3. During the digitalization phase from 2015 to 2018, 400 computers
have been supplied to the Khadi institutions.
4. For the first time in 2018 in New Delhi Khadi Haat was set up .
5. Khadi Village Industries Commission established Digital India
Pavilion in the India International Trade Fair.
6. Khadi Village Industries Commission gifted Gandhi Charkha to
Uganda which was unveiled on International Day of Non -Violence. munotes.in
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65 Diversification of Rural Economy - 2 7. Khadi Village Indus tries Commission foresees an artisan -focussed
vision for a change in the Khadi and the Village Industries.
8. Khadi Village Industries Commission has developed an e -portal for
Khadi institutions which aids the artisans promote and sell their Khadi
Village Ind ustries products.
9. Khadi Village Industries Commission is the nodal agency which
develops groups for Khadi production under Scheme of Funds for
Regeneration of Traditional Industries (SFURTI).
10. There are five organs of Khadi Village Industries Commission
(KVIC) namely a) Organization b) Community c) Village Industry d)
Market and e) Heritage
6.3.4 Mission of The Organs of KVIC
As mentioned above there are five organs of Khadi Village Industries
Commission. The mission of each organ is briefly stated below:
1. Organization: Khadi Village Industries Commission undertakes the
responsibility for the development of Khadi Village Industries and to
reduce the burden of the government.
2. Community: To make the rural community self -reliant by
encouraging security of life.
3. Village Industry: To accelerate and surge productivity in Khadi
Vikas Industries sectors.
4. Market: To help the sales and marketing of Khadi Village Industries
products.
5. Heritage: To protect the socio -cultural value as a national asset.
6.3.5 Role of Khadi an d Village Industries Commission (KVIC) in
Indian Economy
1. The Khadi and Village Industries Commission (KVIC) is playing an
important role in Indian economy as it covers about 2.48 lakh villages
throughout the country. Over the years, the main thrust of KVI
activities has been to provide a larger share of employment to
scheduled caste and scheduled tribes and women.
2. At present SC/STs comprise nearly 32.0 per cent of workers and
women constitute 46 per cent of the work force. In 1992 -93, the
Khadi and Village industries produced goods worth Rs 270.49 crore
and provided employment to 51.05 lakh persons.
3. During 1993 -94 the production level increased to Rs 3,490.0 crore
and provides employment to 55.50 lakh persons.
4. The khadi programme consists of production of cotton, silk, muslin
and woollen and village industries consisting of 111 industries and munotes.in
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Rural Development
66 implemented through directly aided agencies and State/UT level
Khadi and Village Industries Board.
5. The government has also launched a new scheme in 125 blocks of the
country for intensive development of khadi and village industry. The
objective of this programme is to create about 1,000 additional jobs in
each block during the period of next three years.
6. The Khadi and Village Industries Commission (KVIC) has been
playin g an important role as an instrument to generate large scale
employment in the rural areas with low per capita investment.
7. The Government will continue to encourage the khadi and village
industry sector so that its products can become more competitive, fo r
intensifying marketing efforts, the Budget 2000 -01 proposed that the
KVIC will introduce a common brand name for its products and also
set up a professionally managed marketing company for domestic as
well as export marketing.
8. KVIC has also launched a ma ssive marketing development plan
throughout the country so as to generate interest, awareness and
attraction amongst the masses about the khadi and village industries
products.
9. Accordingly, KVIC has approved a number of schemes in order to
promote marketi ng of the products of village industries and also to
offer employment opportunities to unemployed under Rural
Employment Generation Programmes.
10. The MSME Ministry is also implementing a comprehensive reform
package for the Khadi sector. This envisages upgra dation and capacity
building of 300 Khadi institutions and also for improving their
marketing skills. Under the package, steps are being taken to
distribute 1 lakh modern charkhas to artisans and also new handlooms
to various Khadi Sansthans.
11. Seventy -nine clusters have been sanctioned under the Scheme of Fund
for Regeneration of Traditional Industries (SFRUTI). Presently KVIC
is functioning under the administrative control of the Ministry of
MSME. KVIC has been identified as one of the major organizations
in the decentralized sector for generating sustainable non - farm
employment opportunities in rural areas at a low per capita
investment.
12. It undertakes activities like skill improvement, transfer of technology,
research and development, marketing etc. and al so helps in generating
employment self -employment opportunities in rural areas.
6.3.6 Challenges in KYIC
1. To face the challenge of globalisation. KVIC has introduced a number
of new products ranges like Khadi denim jeans, Sarvodaya brand for
export purpose. The KVIC is also training its sales staff in order to munotes.in
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67 Diversification of Rural Economy - 2 attune them to the new market -context being created by globalisation.
For ensuring quality for KVI products, the commission is approaching
the Bureau of Indian Standards and Directorate of Marketing an d
Inspection of Ministry of Agriculture.
2. Moreover, to create a market -niche for eco -friendly pure and bio -
degradable natural products, the KVIC has introduced two new brands
viz., “Sarvodaya” and “Khadi”. The KVIC has decided to participate
actively in int ernational trade exhibitions being organised by ITPO,
with the primary objective of popularising its products in international
markets.
3. The KVIC has worked out a plan to supply KVI products in a big way
to Central and State Government organisations. Plans are afoot to set
up show windows in Indian Missions abroad as well as to open Khadi
Gramodyog Bhawans in Australia, Germany, U.K., U.S.A., Canada,
Dubai and Singapore.
Check Progress
1. Explain meaning and objectives of KVIC in India.
2. Discuss function s of KVIC in India.
3. Write a note on progress of KVIC in India.
4. What are the Challenges faced by KVIC in India?
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68 6.4 RECENT DEVELOPMENT OF SCIENCE & TECHNOLOGY IN RURAL DEVELOPMENT 6.4.1 Introduction:
Though after independence in 1947, there was an increase in the
infrastructure relating to science and technology but however, there was a
very poor economic growth of around 3% during the first 30 years after
attaining independence. There has been major development in technology,
introduction o f innovative scientific methods within the nation ever since
the commencement of the 21st century. Business and industrial sector
have experienced a much better improvement as compared to science and
technology which has lagged behind due to certain setbac ks and crisis it
has faced, public sector science and technology systems too are facing
some major challenges. Despite all these shortcomings science and
technology has provided a greater prosperity to the educated middle -class
people who are employed in t he information technology sector.
Major development in India has happened mainly due to science and
technology, it is these technological factors which help in the development
of the rural areas in India. There have been many sectors in the rural areas
like small scale industries, agriculture, medical facilities, education and so
on. It is important that there is a development in science and technology in
order to bring about a development in the above -mentioned sectors in rural
areas. So as to bring about such an improvement in the rural areas, it is
important there is a proper co -ordination in various central government
departments which include departments like biotechnology, non -
conventional energy sources, ocean development, scientific and industrial
research and space. Water bodies play a very important role in the lives of
the rural people as agriculture being their main occupation is entirely
dependent on the availability of water. So, it is very important to see that
the water resources available in rural areas are clean and usable for all
purposes whether it is for drinking or agricultural purposes.
6.4.2 Significance of science and technology in Rural Development:
Science and technology have always played a vital role in the rural
development, scie nce and technology have helped in bringing about a
major change in the health conditions, lifestyle, income generation and
productivity enhancement in the lives of the rural population. Science and
technology provide a solution to the main problem faced by the rural
population which are poverty removal and economic challenges.
Poverty has been considered to be the most serious problem faced by the
rural people, in order to bring about solutions to the problems of poverty,
there have been advances in science and technology for the welfare of the
rural people. The main areas have been agriculture, health, energy, water
and environmental concerns. When science and technological factors have
been appropriately utilized in these five areas, then certainly there w ill be
reduction of poverty and people will have more availability of food, health munotes.in
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69 Diversification of Rural Economy - 2 care facilities, sources of energy, clean water and the environmental
concerns.
Environmental fears like changes in climatic conditions, water pollution
air pollution, strat ospheric ozone reduction, loss of biological diversity,
land deprivation and desertification; these changes in the environment can
unfavourably affect the incomes of the poor individuals who are
dependent upon the environment for their livelihood, through air and
water pollution human health can also be harmfully affected. The main
challenge is to identify that local, regional and global ecological issues are
interrelated and affect workable development. Therefore, there are
collaborative opportunities to d evelop more effective response options to
these environmental issues that improve benefits, reduce costs, and more
sustainably meet human needs. The ability of the nations to adjust and
alleviate can be enhanced when environmental policies are integrated w ith
national development policies.
Science and technology have played a crucial role in economic growth.
Initially, since the industrial revolution, rich as well as developed nations
have had the most science and technical capability and have grown at an
increasing pace. The developed nations which are scientifically and
technologically advanced have become increasingly prosperous, and their
rates of growth have not diminished as there was a regular development in
the field of science and technology. Second , improvement in research and
development have been applied in a steadily positive manner and high
across almost in all the fields and the industries that have been accounted
for, in the developed and the developing nations. Third, source of income
is a mu st for rural people; they would like to have some kind of
employment so that they can earn some income for themselves and their
dependent families, income generation has been considered to be essential
for economic growth and science and technological fact ors have
contributed in the generation of employment opportunities for the rural
people not only in agriculture, but in also other areas such as offices,
educational institutions, industries, and so forth.
6.4.3 Science and Technology: Schemes and Programs :
The rural development is determined by the efficient, scientific and
optimum assessment, conservation, utilization and distribution of rural
resources. Science and technology and rural development are thus inter -
related and inter -dependent. In the field of agriculture, advances in
agricultural technology have brought about transformations in agricultural
productivity. These include the use of high yielding and disease resistant
seeds, fertilizers, pesticides, improved implements, irrigation and
drainage, crop rotation and cropping patterns, storage, processing and
marketing. Various programs connecting science and technology and rural
development have been launched in recent times. The major ones have
been stated as follows: munotes.in
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Rural Development
70 1. Science and Society Program of the Department of Science and
Technology (DST), the Government of India. It includes S and T
Application for Rural Development (STARD).
2. S and T Application for the Weaker Sections (STAWS).
3. S and T for Women.
4. S and T for practical and strategic needs of SC Population.
5. Empowering tribal groups through S and T.
6. Scheme for Young Scientists.
Several other programs are also available for the development of animal
husbandry and fisheries, which are an integral part of agriculture in rural
India. These include, Da iry Development Program (DDP), Fodder
Development Program (FDP), Intensive Cattle Development Program
(ICDP) and Special Livestock Production Program (SLPP). Awareness in
terms of S and T inputs arising from the researches being done in genetics
and breedi ng, botany, microbiology and biochemistry are made available
to all under these programs. The setting up of poultry, piggery, fisheries
and sheep production units and rearing of cross -heifers by small and
marginal farmers and agricultural laborers are enco uraged through these
programs. There has been initiation of special programs for the
development of hill areas, tribal areas, drought -prone and desert areas,
command areas and so forth by adopting area -specific approaches. These
are, Hill Area Development Program (HADP), Tribal Development
Program (TDP), Intensive Agricultural District Program (IADP), Drought
Prone Area Program (DPAP), Desert Development Program (DDP),
Command Area Development Program (CADP) and Whole Village
Development Program (WVDP).
6.4.4 Examples of Appropriate Technologies in Rural Development:
The examples of suitable technologies that have been used in rural
development have been stated as follows:
1. Information and Communications Technology:
There have been development of computers w hich are low in cost; they
are used in the developing countries. Computers are the mechanical means
that are widely used, when applying research in a particular area, internet
is used, it is the most complete and appropriate areas to find out data
regardin g any area, topic, subject or problem.
2. Construction:
For the purpose of construction of houses or any buildings; technology is
used such as rammed earth, Dutch brick, and cob; these materials are
generally available and are inexpensive. These construction materials
make the houses and the buildings strong, adaptable to all the
environmental conditions and well -built. The rural people are able to munotes.in
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71 Diversification of Rural Economy - 2 access these materials in a manageable way so that their construction is
carried out in an appropriate manner.
3. Energy:
Electricity can be provided from solar cells, wind power or micro, hydro,
with energy stored in batteries. Biobutanol, biodiesel, biogas and
vegetable oil are considered to be sources of energy. But with
transformations taking place, rural areas ar e also acquiring electricity, as it
is necessary to augment one’s living conditions.
4. Cooking:
Stoves that are smokeless and wood conserving lead to greater efficiency,
saves time and labour, reduced deforestation and significant health
benefits. In some c ases, solar cookers are useful depending upon the
climatical conditions and the means of cooking. Research has shown that
individuals in rural areas are using electric stoves for the preparation of
meals.
5. Health care:
In the establishment of health centre s, provision of medical facilities,
health benefits, there is usage of science and technology. Through the use
of technological factors and advancement in the field of science,
medicines and innovative machines are coming into existence in hospitals
and he alth care centres in rural areas.
6. Refrigeration:
There are certain food items that need to be refrigerated, in rural areas in
warm weather conditions, people would like to consume cold water, and
hence, there has been facility of pot refrigeration system, which keeps
things in cool even without electricity.
7. Television and Radio:
These are the technological means that have improved the lives of the
rural people; they take pleasure in watching various shows and movies on
the television and enjoy listening to the radio. Television and radio
systems have become their main sources of entertainment and learning as
they even learn various things that they apply in their daily works, for
example, the agricultural programs on the television benefit the farmers
and they apply the appropriate methods in their occupation.
8. Agricultural Technologies:
The cultivation of crops such as rice, wheat and maize have been
considered to be the major advancement in agricultural technologies. More
and more people found service a nd there was a huge reduction in poverty;
difficulties of pollution and reduction of land and water got solved through
the rise of technologies.
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Rural Development
72 9. Computers:
Research has indicated that individuals in rural areas are making use of
computers to augment thei r understanding in terms of various concepts.
Students and youth are the ones, who are making use of computers to a
major extent. Through making use of computers, they are not only able to
acquire an efficient understanding of the academic concepts, but al so are
able to work on their tasks and assignments efficiently and communicate.
In rural areas, there have been establishment of computer centres, where
individuals are able to work on computers well as make use of other
technologies, such as, printers and scanners.
10. Mobile Phones:
The use of mobile phones is common among rural individuals. The
individuals, belonging to various age groups are making use of mobile
technology. It is used for various purposes. Research has indicated that
rural individuals are not educated. They are either illiterates or possess low
literacy skills. They usually make use of mobile phones for
communicating and for recreational purposes.
6.4.5 Applications of science and technology:
The main objective of the science and technology applications is to
empower the knowledge of the people. It means developing the ability
among the individuals to attain their goals and objectives through the
generation, acquisition and use of knowledge.
Energy:
Energy is essential for agriculture for i nputs such as fertilizers, for
delivery of water and for transportation. It is also necessary to bring about
rural industrialization. The single major source of energy remains to be
firewood, and this will continue for quite some time. Generation of
biomas s through the methods of tissue philosophy is very useful. The non -
conventional energy sources which are renewable, decentralized and non -
polluting are particularly relevant to rural areas which are unlikely to
obtain electricity for their needs for a long time to come. Biogas plants,
solar domestic lighting systems, water pumping systems, pumps, solar
cookers, smokeless stoves, community lighting and television systems and
solar battery charging units are the sources of energy that have led to
regionalizat ion of rural industrialization leading to generation of
employment and change of natural resources into products of higher value.
Water:
Water is the most crucial single resource for the survival of human life.
Every effort will have to be made to improve the availability of drinking
water in rural areas; it is necessary to devise and implement scientific
methods for water harvesting, conservation and recycling. Clean water
supply in the rural areas has to be given the highest priority; remote
sensing is a powerful technique utilized for water targeting. This effort munotes.in
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73 Diversification of Rural Economy - 2 calls for development and rehabilitation of springs, studies on maintenance
of water distribution system, evaluation and assessment of existing rural
water supply systems, community participatio n, technology transfer,
development and rehabilitation of springs and use of solar energy for rural
water supply, development of integrated package for water treatment, to
make water drinkable, use of hydraulic rams for water supply in hilly
areas, use of solar energy for rural water supply.
Housing:
Several technologies have been applied to grow low cost building
resources, designs and construction methods; there has been availability if
non-erodible mud plaster for the protection of mud walls from rain.
Biotechnology:
In the field of biotechnology, developments relating to bio -fertilizers,
aquaculture, biomass production through tissue culture techniques,
embryo -transfer technology to upgrade cattle, herds, etc. have enormous
potential for employment gen eration and increasing effectiveness and
output for activities in daily life in rural areas; mechanisms to make these
effective on a large scale have to be taken into consideration.
Information Technology:
Use of information technology in sectors like agr iculture, irrigation,
energy, health, family planning, education, employment and transportation
are vital for bringing about a major transformation in the rural sector.
Information related to local skills and expertise and resources, is important
to carry out effective decentralized planning. The National Informatics
Centre (NIC) was set up in 1975 by the Department of Electronics, it has
developed a District Information System, and this established a centre in
each district of the country. There are a huge number of training and
information transfer programs which have been based on the nationwide
satellite communication network; this will assist in making available
valuable information for district and local planning.
Space Technology:
There are a wide ra nge of applications of remote sensing technology in
areas of disaster warning for coastal fishermen, inland/marine fisheries,
minor irrigation, water targeting for drinking water, wasteland
identification, vegetation mapping, drought monitoring, etc. Alrea dy, with
the use of space imagery ground water potential zone maps have been
prepared for more than 370 districts which include 91 DPAP districts and
20 DDP districts. A new development relates to the forecast for better fish
catches in the coastal regions by making use of the satellite data. It is
expected that optimal utilization of space technology can bring about a
better dissemination of information through satellite -based communication
and broadcasting. This will be of great significance to remote are as.
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Rural Development
74 Technology Transfer:
There are large number of technologies available in India, for the actual
implementation of the technologies, adequate science and technologies,
manpower and infrastructure should be spread throughout the nation.
What are most im mediately called for are appropriate mechanisms for
transfer of technology and an appreciation of what technologies are
needed and are appropriate. For this schools, research laboratories,
academic institutions, schools and colleges including agricultural medical
and engineering institutions and voluntary organizations have all to be
brought together through suitable networking. At present, most of the
work is split and classified making the impact much less than the
potential.
Employment:
Job openings with in the rural areas can be generated with inputs of science
and technology in the areas of small -scale industries, animal husbandry,
agricultural practices, training and skill improvement of the rural people,
education, awareness generation and popularizati on of scientific methods
and approaches, biomass cultivation, utilization and agro -processing
through innovative biotechnological processes and health care centres.
6.4.6 Role of science academies :
Progress in science, technology and innovation is essentia l, although not
adequate to resolve the many underlying challenges for sustainable
development. These include poor governance at all levels from local to
global, insufficient education systems, and absence of rural development
(access to roads, financing, education, and empowerment of women). The
Academies believe that they are base for value of science which include
emphasis on evidence, openness, ethical standards, and social
responsibility can contribute to good governance. They recognize the
context wit hin which science and technology exist and initiate to support
policy making for sustainable development.
Check Progress
1. Write significance of Science and Technology in rural development.
2. Write name of schemes & programs of science and technology which
is launched by Govt. for rural development. munotes.in
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75 Diversification of Rural Economy - 2 3. Explain various examples of appropriate technology which is useful
in rural development.
6.5 SUMMARY Agro -based industries enjoy the advantages like strong demand, policy
support, great opportunit ies and competitive advantages. On the other
hand, it faces challenges like seasonal in nature, low landholdings,
perishable products, poor standard in quality control etc. Khadi Village
and Industries Commission was established with an objective to increa se
job opportunities in the country, to make the nation self -reliant and to
promote the use of khadi articles. There are various challenges faced by
the Khadi Village and Industries Commission like tough competition from
international brands due to globali zation. Science and technology have
always played a vital role in the rural development, science and
technology have helped in bringing about a major change in the health
conditions, lifestyle, income generation and productivity enhancement in
the lives of the rural population. Energy is as necessary for agriculture for
inputs such as fertilizers, for delivery of water and for transportation. It is
also necessary to bring about rural industrialization.
6.6 QUESTIONS Q1. Explain concept of Agro -based industries. Write advantages and types
of agro -based industries.
Q2. Discuss importance and challenges faced by Agro -based industries.
Q3. How to improve the Agro -based industries?
Q4. What are major steps taken by the Government to improve Agro -
based Industries.
Q5. Write in detail the role of KVIC in Rural Development.
Q6. Write a note on mission of organs of KVIC.
Q7. Explain the significance of Science and Technology in rural
deve lopment.
Q8. Discuss various examples of appropriate technology which is used in
rural development.
Q9. Write a note on Applications of Science and Technology.
6.7 REFERENCE Indian Economy - Datt & Sundharam, Rural Development in India -
Vasant Desai, Rural Development - Satyasundaram.
**** munotes.in
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76 MODULE 4
7
RURAL EMPOWERMENT
PROGRAMMES - 1
Unit structure
7.0 Objectives
7.1 Introduction
7.2 Overview of rural development programs in India
7.3 Provision of Urban Amenities in Rural Areas (PURA)
7.4 Mahatma Gandhi National Rural Employment Guaran tee Act
(MGNREGA)
7.5 Deendayal Antyodaya Yojana – National Rural Livelihood Mission
(DAY -NRLM)
7.6 Questions
7.0 OBJECTIVES After studying the unit, the students will be able to understand:
● Rural development programs in India
● Provisions of rural amenitie s in urban areas
● Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA)
● Deendayal Antyodaya Yojana – National Rural Livelihood Mission
(DAY -NRLM)
7.1 INTRODUCTION Rural development is the process of improving the quality of life and
economic well-being of people living in rural areas . It is often relatively
for the people isolated and sparsely populated areas. Rural development
actions are intended to further the social and economic deve lopment of
rural communities. Rural development programs were historically top -
down approaches from local or regional authoritie s, regional development
agencies , NGOs , national governments or international development
organizations. The term rural develo pment is not limited to issues of
developing countries. In fact many developed countries have very active
rural development programs.
Rural development aims at finding ways to improve rur al lives with the
participation of rural people themselves, so as to meet the required needs
of rural communities. The outsider may not understand the setting, culture, munotes.in
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77 Rural Empowerment Programmes - 1 language and other things prevalent in the local area. As such, rural people
themselves have to participate in their sustainable rural development.
7.2 AN OVERVIEW OF RURAL DEVELOPMENT PROGRAMS IN INDIA According to Census 2011, out of a total population of 121 crores, around
70% i.e. 83.3 crores live in rural areas. These rural population s can be
characterized by mass poverty, low levels of literacy and income, high
levels of unemployment, and poor nutrition and health status. In order to
tackle these specific problems, a number of rural development programs
are being implemented to create opportunities for improvement of the
quality of life of these rural people.
The term “rural development‟ is the overall development of rural areas to
improve the quality of life of rural people. And it is a process leading to
sustainable improvement in the quality of life of rural people especially
the poor. The rural development al programs intend to reduce poverty and
unemployment, to improve the health and educational status and to fulfill
the basic needs such as food, shelter and clothing of the rural population.
To improve the conditions of rural people, Government of India la unched
some schemes through the planning commission of India such as Mahatma
Gandhi National Rural Employment Guarantee Act (MGNREGA),
Rastriya Sama Vikas Yojana (RSVY), Indira Awas Yojana (IAY),
Sampoorna Grameen Rozgar Yojana (SGRY), Integrated Tribal
Development Project (ITDP), Pradhan Mantri Gram Sadak Yojana
(PMGSY), Integrated Child Development Services (ICDS), Development
of Women and Children in Rural Areas (DWCRA), etc. All these schemes
are aimed to reduce the gap between rural and urban people wh ich would
help reduce imbalances and speed up the development process.
7.3 PROVISION OF URBAN AMENITIES IN RURAL AREAS (PURA) 7.3.1 Brief history :
In pursuance to the announcement of Prime Minister on Independence
Day, 2003, the Planning Commission submi tted a proposal for approval of
the Government to implement PURA scheme. The scheme was approved
by the Government „in -principle‟ in January 2004. Subsequently, MoRD
implemented the PURA scheme on a pilot basis in seven clusters for a
period of three years (2004 - 05 to 2006 -07). It was approved with
retrospective effect by the Cabinet in its meeting on 16.03.06 with the
direction to restructure the PURA scheme. The pilot phase of PURA was
evaluated by National Institute of Rural Development (NIRD). Based on
the experience learnt during the pilot phase, evaluation conducted by
NIRD of pilot phase and the technical support of Asian Development
Bank (ADB), the PURA scheme has been restructured. The restructured
PURA scheme has been approved by the Government fo r implementation
on a pilot basis during the 11th five year plan. munotes.in
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78 Rural Development
78 7.3.2 Duties :
(i) Laying of policy guidelines
(ii) Selection of private developers for implementation of the scheme
(iii) Release of funds to the DRDAs
(iv) Monitoring and evaluation of performance
7.3.3 List of services :
● Formulation of guidelines for implementation of PURA scheme.
● Evaluation and approval of Detailed Project Report
● Release of funds to DRDAs
● Convening the meeting of Project Screening and Monitoring
Committee (PSMC) Inter – Ministerial Empowered Committee (EC)
Central Level for approving the projects
● Monitoring / Evaluations
● Grievance redress mechanism
Provision of Urban Amenities in Rural Areas (PURA) is a Central Sector
scheme re -launched by Ministry of Rural Development (MoRD),
Gove rnment of India during the remaining period of the XI Plan with
support from Department of Economic Affairs and the technical assistance
of Asian Development Bank. MoRD intends to implement the PURA
scheme under a Public Private Partnership (PPP) framework between
Gram Panchayat(s) and private sector partners. The scheme envisages
twinning of rural infrastructure development with economic re -generation
activities and is the first attempt at delivering a basket of infrastructure and
amenities through PPP in the rural areas. It is an effort to provide a
different framework for the implementation of rural infrastructure
development schemes and harness private sector efficiencies in the
management of assets and delivery of services. This would perhaps be the
first such attempt at PPP in integrated rural infrastructure development and
management in the world.
7.4 MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT (MGNREGA) 7.4.1 Introduction:
National Rural Employment Guarantee Act 2005 (or, NREGA No 42, later
renamed as the “Mahatma Gandhi National Rural Employment Guarantee
Act”, MGNREGA), is an Indian labour law and social security measure
that aims to guarantee the ‘right to work’. munotes.in
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79 Rural Empowerment Programmes - 1 It aims to enhance livelihood security in rural areas by providing at least
100 days of wage employment in a financial year to every household
whose adult members volunteer to do unskilled manual work.
The act was first proposed in 1991 by P.V. Narasimha Rao. In 2006, it was
finally accepted in the parliament and commenced impleme ntation in 625
districts of India. Based on this pilot experience, NREGA was scoped up
to covered all the districts of India from 1 April 2008.The statute is hailed
by the government as “the largest and most ambitious social security and
public works progr amme in the world”.In its World Development Report
2014, the World Bank termed it a “stellar example of rural development”.
The MGNREGA was initiated with the objective of “enhancing livelihood
security in rural areas by providing at least 100 days of guar anteed wage
employment in a financial year, to every household whose adult members
volunteer to do unskilled manual work”.Another aim of MGNREGA is to
create durable assets (such as roads, canals, ponds, wells). Employment is
to be provided within 5 km of an applicant’s residence, and minimum
wages are to be paid. If work is not provided within 15 days of applying,
applicants are entitled to an unemployment allowance. Thus, employment
under MGNREGA is a legal entitlement.
MGNREGA is to be implemented mainly by gram panchayats (GPs). The
involvement of contractors is banned. Labour -intensive tasks like creating
infrastructure for water harvesting, drought relief and flood control are
preferred.
Apart from providing economic security and creating rural assets, NREGA
can help in protecting the environment, empowering rural women,
reducing rural -urban migration and fostering social equity, among others.
The Mahatma Gandhi National Rural Employment Guarantee Act, 2005
(MGNREGA) was notified on September 7, 2005.
7.4.2 Aim:
MGNREGA aims to enhance livelihood security in rural areas by
providing at least 100 days of wage employment in a financial year to
every household whose adult members volunteer to do unskilled manual
work.
7.4.3 Goals:
i) Social protection for the most vulnerable people living in rural India
by providing employment opportunities
ii) Livelihood security for the poor through creation of durable assets,
improved water security, soil conservation and higher land
productivity
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80 Rural Development
80 iv) Empowerment of the socially disadvantaged, especially women,
Scheduled Castes (SCs) and Schedules Tribes (STs), through the
processes of a rights -based legislation
v) Strengthening decentralized, participatory planning through
convergence of various anti -poverty and livelihoods initiatives
vi) Deepening democracy at the grass -roots by strengthening Panchayati
Raj Institutions
vii) Effecting greater transparency and accountability in governance Thus,
MGNREGA is a powerful instrument for ensuring inclusive growth in
rural India through its impact on social protection, livelihood security
and democratic empowerment.
7.4.4 Main features of MGNREGA:
● Gives legal guarantee of wage employment to the adult members of
rural households who are willing to do unskilled manual labour
subject to a maximum of 100 days per household
● It is applicable to all villages in the District. Every rural household
has the right to register under MGNREGA
● Job cards are issued to every hous ehold registered under MGNREGA
within 15 days from the date of receipt of the application for the job
card registration.
● The registered job cardholders can seek employment by giving a
group / individual application. A minimum of 10 job seekers shall
apply to sanction a new work under MGNREGA
● The work shall be provided within 5 km jurisdiction from the village
● If the work provided is beyond 5 Kms, the job seekers shall be given
10% of the minimum wages as the additional amount
● State Govt. to pay 25% of minim um wage for the 1st 30 days as
compensatory daily unemployment allowance on failure to provide
employment for the families demanding the works under MGNREG
Act, and half of the wage for the remaining period of the year
● Wages are paid according to the State Minimum Wage rate notified
under the Minimum Wages Act 1948. The current wage rate is
Rs.117/ - for all unskilled work and Rs. 120/ - for skilled labour.
● Equal payment for men and women
● Wages to be paid within a fortnight
● 1/3 beneficiaries should be women
● Worksite facilities such as creche, drinking water and shade have to
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81 Rural Empowerment Programmes - 1 7.4.5 Current status of MGNREGS:
● The Government of India has allocated Rs. 73,000 crore at the Budget
Estimate stage for the current financial year 2021 -22 for MNREGS
which is an increase of Rs. 11,500 crore as compared to Budget
Estimate for the financial year 2020 -21.
● In the current financial year 2021 -22, 6.51 crore persons have been
provided employment and more than 130.9 crore person -days have
been generated under MGNREGS.
● An amount of Rs. 41,187.06 crore has been released in the current
financial year 2021 -22 (as of 20.07.2021) for the implementation of
the programme.
● The Act also mandates expenditure of 60% for the creation of assets
directly related to agriculture and al lied activities through the
development of land, water and trees. In the current FY 2021 -22, so
far, 73% of the expenditure is incurred on agriculture and allied
works.
7.5 DEENDAYAL ANTYODAYA YOJANA – NATIONAL RURAL LIVELIHOOD MISSION (DAY -NRLM) 7.5.1 Int roduction:
Various schemes are run for rural development. National Rural Livelihood
Mission is one such governmental initiative for the rural areas. Deendayal
Antyodaya Yojana – National Rural Livelihood Mission (DAY -NRLM) is
a new name given to Aajeevika – NRLM in November 2015.
Aajeevika - National Rural Livelihoods Mission (NRLM) was launched
by the Ministry of Rural Development (MoRD), Government of India in
June 2011.
The DAY -NRLM is essentially a poverty relief programme of the Central
government. It was launched as ‘Aajeevika – National Rural Livelihoods
Mission (NRLM)’ by the Government of India’s Ministry of Rural
Development in the year 2011. It was renamed as DAY -NRLM in 2015.
The scheme is an improved version of the earlier Swarnjayanti Gram
Swarozgar Yojana (SGSY).
● The programme is supported partially by the World Bank.
● It aims at creating effective and efficient institutional platforms to
enable the rural poor to increase their household income by means of
sustainable livelihood enhancements an d better access to financial
services.
● Additionally, the poor would also be enabled to attain improved
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82 Rural Development
82 ● The mission aims at harnessing the inherent capabilities of the poor
and equipping them with c apacities (such as knowledge, information,
tools, finance, skills, and collectivization for them to take part in the
economy.
● The scheme started with an agenda to cover 7 Crore rural poor
households via Self Help Groups (SHGs) and federated institutions
and support them for livelihoods collectives in 8 -10 years.
● In 2021, the Union Cabinet had approved a special package worth Rs.
520 crore in the Union Territories (UTs) of Jammu and Kashmir
(J&K) and Ladakh for a period of five years (till the financial year
2023 -24) under the Deendayal Antyodaya Yojana -National Rural
Livelihood Mission (DAY -NRLM).
● The decision is in line with the government’s aim to universalise all
centrally sponsored benef iciary -oriented schemes in Jammu &
Kashmir and Ladakh in a time -bound manner.
7.5.2 NRLM Mission :
“To reduce poverty by enabling the poor households to access gainful self -
employment and skilled wage employment opportunities, resulting in an
appreciable im provement in their livelihoods on a sustainable basis,
through building strong grassroots institutions for the poor.”
7.5.3 Guiding Principles of NRLM
1. The poor have a great desire to escape poverty, and they have inherent
capabilities.
2. For unleashing the i nnate abilities of the poor, social mobilization and
strong institutions are necessary.
3. To induce social mobilization and build strong institutions and
empower, an external support structure is needed that is both
dedicated and sensitive.
4. This upward mobil ity is supported by:
Enabling knowledge dissemination
Building skills
Credit access
Marketing access
Livelihood services access
7.5.4 NRLM Values :
● Including the poorest, and giving them a meaningful role in every
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83 Rural Empowerment Programmes - 1 ● Accountability and transparency in all institutions & processes
● Community self -dependence and self -reliance
● The poor should have ownership and a key role in all their institutions
– in planning, executing and monitoring
7.5.5 Major Features of DAY -NRLM :
The chief features of the scheme are as follows:
● Universal social mobilization: A minimum of one lady member of a
rural poor household (with particular emphasis on the marginal
sections) is to be brought in the network of an SHG.
● Participatory Identification of Poor
● Community Funds as Resourc es in Perpetuity: this is to strengthen the
financial management capacity of the poor
● Financial inclusion
● Livelihoods: the mission focuses on promoting and stabilizing the
existing livelihood structures of the poor through its three pillars:
● Vulnerability reduction & Livelihoods enhancement – through
expanding existing livelihoods and tapping new livelihood
opportunities in both the farm and non -farm sectors
● Employment – building skills
● Enterprises – promoting self -employment
● Another important feature of th is scheme is that it places a high
priority on convergence and partnerships with other government
schemes of the Rural Development Ministry. It also seeks to have
linkages with the Panchayat i Raj institutions.
7.5.6 Sub-schemes under NRLM :
1) Aajeevika Grameen Express Yojana (AGEY) :
● This scheme was initiated in 2017.
● It aims at providing alternative sources of livelihood to members of
SHGs under the parent scheme by enabling them to offer pu blic
transport services in backward rural areas.
● The scheme offers affordable, safe, and community -monitored rural
transport services to connect villages in remote areas with key
amenities & services (access to health, markets, and education) for the
overa ll economic development of the region.
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84 Rural Development
84 2) Mahila Kisan Sashaktikaran Pariyojana (MKSP) :
● The main objective of this sub -scheme is to empower women in
agriculture by making systematic investments to enhance their
participation and productivity.
● The program me also seeks to create and sustain agriculture -based
livelihoods concerning women in rural areas.
● Other aims are to ensure food and nutrition in the households, enable
better access to services and inputs for women, improve the
managerial capabilities of women, etc.
3) Start -up Village Entrepreneurship Programme (SVEP) :
● The objective of this sub -scheme is to promote startups in rural areas.
● The scheme will address the three key hiccups concerning rural
startups:
● A missing knowledge ecosystem
● A missing fina ncial ecosystem
● A missing incubation ecosystem
● SVEP envisions the generation of sustainable self -employment
opportunities for rural poor youth, facilitating them to engage
effectively with the market and help generate wealth locally.
4) National Rural Live lihoods Project (NRLP) :
● The NRLP is designed to create ‘proof of concept’ and build
capacities at the central and state levels, to have a facilitating
environment for all states and UTs to transit to the NRLM.
Rural livelihood is an important topic from th e UPSC CSE exam
perspectives. Hence, it is important to cover different aspects of Rural
Livelihood i.e. through definition, improvement, and government
intervention to enhance it.
7.5.7 NRLM Latest Updates :
● As part of Azadi ka Amrit Mahotsav, a total of 152 Center for
Financial Literacy & Service Delivery (SAKSHAM Centers) across
77 districts of 13 states were launched under Deendayal Antyodaya
Yojana – National Rural Livelihoods Mission (DAY -NRLM) of the
Ministry of Rural Development during October 4th a nd 8th, 2021.
● The objective of SAKSHAM Centers is to provide financial literacy
& facilitate the delivery of financial services to SHG members and the
rural poor. munotes.in
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85 Rural Empowerment Programmes - 1 ● Center for Financial Literacy & Service Delivery (CFL & SD) would
act as a one -stop solution/ single window system for the basic financial
needs of Self -Help Group (SHG) households in rural areas.
● These Centers will be managed by the SHG network, largely at the
level of the Cluster Level Federations (CLFs), with the help of trained
Community Resource Persons (CRPs)
7.6 QUESTIONS Q1. Explain different rural development programmes in india.
Q2. State and explain Provisions of rural amenities in urban areas.
Q3. What is Mahatma Gandhi National Rural Employment Guarantee
Act?
Q4. Explain Deendayal Antyodaya Yojana – National Rural Livelihood
Mission (DAY -NRLM) in detail.
*****
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86 8
RURAL EMPOWERMENT
PROGRAMMES - 2
Unit Structure
8.0 Objectives
8.1 National social Assistance Program
8.2 Microfinance
8.3 Self Help Group
8.4 Summary
8.5 Questions
8.0 OBJECTIVES After studying the unit, the students will be able to understand:
● National Social Assistance Program
● Microfinance
● Self Help Group
8.1 NATIONAL SOCIAL ASSISTANCE PROGRAM 8.1.1 Introduction:
● NSAP stands for National Social Assistance Programme. NSAP was
launched on 15th August, 1995.
● The National Social Assistance Programme (NS AP) represents a
significant step towards the fulfillment of the Directive Principles in
Article 41 and 42 of the Constitution recognizing the concurrent
responsibility of the Central and the State Governments in the matter.
In particular, Article 41 of th e Constitution of India directs the State
to provide public assistance to its citizens in case of unemployment,
old age, sickness and disablement and in other cases of undeserved
want within the limit of its economic capacity and development.
8.1.2 Objective of NSAP:
● National Social Assistance Programme is a social security and welfare
programme to provide support to aged persons, widows, disabled
persons and bereaved families on death of primary breadwinner,
belonging to below poverty line households.
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87 Rural Empowerment Programmes – 2 8.1.3 Components of NSAP:
The NSAP at its inception in 1995 had three components namely
● National Old Age Pension Scheme (NOAPS,
● National Family Benefit Scheme (NFBS) and
● National Maternity Benefit Scheme (NMBS). The National Maternity
Benefit Scheme (NMBS) was subsequentl y transferred on 1st April,
2001 from the Ministry of Rural development to the Ministry of
Health and Family Welfare.
On 1st April, 2000 a new Scheme known as Annapurna Scheme was
launched. This scheme aimed at providing food security to meet the
requireme nt of those senior citizens who, though eligible, have remained
uncovered under the NOAPS.
In February 2009, two new Schemes known as Indira Gandhi National
Widow Pension Scheme (IGNWPS) and Indira Gandhi National Disability
Pension Scheme (IGNDPS) were in troduced.
8.1.4 Presently NSAP comprises of five schemes, namely:
● Indira Gandhi National Old Age Pension Scheme (IGNOAPS),
● Indira Gandhi National Widow Pension Scheme (IGNWPS),
● Indira Gandhi National Disability Pension Scheme (IGNDPS),
● National Family Benefit Sc heme NFBS) and
● Annapurna.
8.1.5 Eligibility and scale of assistance :
For getting benefits under NSAP the applicant must belong to a Below
Poverty Line (BPL) family according to the criteria prescribed by the
Govt. of India. The other eligibility criteria and the scale of central
assistance under the sub - schemes of NSAP are as follows. Besides the
central assistance, states / UT contribute an equal amount as their share:
● Indira Gandhi National Old Age Pension Scheme (IGNOAPS) : The
eligible age for IGNOAPS is 60 years. The pension is Rs.200 p.m. for
persons between 60 years and 79 years. For persons who are 80 years
and above the pension is Rs.500/ - per month.
● Indira Gandhi National Widow Pension Scheme (IGNWPS) : The
eligible age is 40 years and the pension is Rs.300 per month. After
attaining the age of 80 years, the beneficiary will get Rs.500/ - per
month. munotes.in
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88 Rural Development ● Indira Gandhi National Disability Pension Scheme (IGNDPS) : The
eligible age for the pensioner is 18 years and above and the disability
level has to be 80% . The amount is Rs.300 per month and after
attaining the age of 80 years, the beneficiary will get Rs 500/ - per
month. Dwarfs will also be an eligible category for this pension.
8.1.6 National Family Benefit Scheme (NFBS):
Rs. 20000/ - will be given as a lump sum assistance to the bereaved
household in the event of death of the bread - winner. It is clarified that
any event of death (natural or otherwise) would make the family eligible
for assistance. A woman in the family, who is a homemaker, is also
considere d as a ‘bread - winner’ for this purpose. The family benefit will
be paid to such surviving members of the household of the deceased poor,
who after local inquiry, is found to be the head of the household. For the
purpose of the scheme, the term “household ’ would include spouse, minor
children, unmarried daughters and dependent parents. In case of death of
an unmarried adult, the term household would include minor brothers/
sisters and dependent parents. The death of such a bread - winner should
have occurr ed whilst he/ she is more than 18 years of age and less than 60
years of age. The assistance would be given to every case of death of the
breadwinner in a family.
8.1.7 Annapurna Scheme:
10 kgs of food grains (wheat or rice) is given per month per beneficiary.
The scheme aims at providing food security to meet the requirements of
those eligible old aged persons who have remained uncovered under the
IGNOAPS
8.2 MICROFINANCE 8.2.1 Meaning:
Microfinance is a way in which loans, credit, insurance, access to savings
accou nts, and money transfers are provided to small business owners and
entrepreneurs in the underdeveloped parts of India.
Microfinance refers to the financial services provided to low -income
individuals or groups who are typically excluded from traditional ba nking.
Most microfinance institutions focus on offering credit in the form of
small working capital loans, sometimes called microloans or microcredit.
8.2.2 Definition:
Microfinance can be defined as a banking service dispensed to low -
income individuals or group s as well as unemployed people who generally
do not have access to financial services.
8.2.3 Purpose of microfinance:
Microfinance is a banking service provided to unemployed or low -income
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89 Rural Empowerment Programmes – 2 financi al services. Microfinance allows people to take on reasonable small
business loans safely, and in a manner that is consistent with ethical
lending practices.
8.2.4 Key Features of Microfinance:
Some of the significant features of microfinance are as follows:
● The borrowers are generally from low income backgrounds
● Loans availed under microfinance are usually of small amount, i.e.,
micro loans
● The loan tenure is short
● Microfinance loans do not require any collateral
● These loans are usually repaid at higher frequen cies
● The purpose of most microfinance loans is income generation
8.2.5 Importance of Microfinance:
Almost half of the population of our country does not have a basic savings
account. However, this segment requires financial services so that their
aspirations suc h as building of assets and protection against risk can be
fulfilled.
Microfinance provides access to capital for individuals who are financially
underserved. If microfinance institutions were not offering loans to this
segment of the society, these groups would have resorted to borrowing
money from friends or family members. The probability of them opting
for fast cash loans or payday advances (that bear huge interest rates) are
also high.
Microfinance helps these groups invest wisely in their businesses, and
hence, is in alignment with the government’s vision of financial inclusion
in the country.
8.2.6 Different types of microfinance institutions in India:
● Joint Liability Group (JLG) ...
● Self Help Group (SHG) ...
● The Grameen Bank Model. ...
● Rural Cooperatives.
8.2.7 Documents Required for a Microfinance Loan:
Although the documentation required for getting a microfinance loan
varies between lenders, the following are the documents that are usually
needed: munotes.in
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90 Rural Development ● Updated application form
● PAN card, copy of Passport, ration car d
● Proof of office address
● Passport -size photos of the applicants and co -applicants
● Certified copies of AOA/MOA/Partnership deed
● Track record of repayment
● Audited financials of the previous 2 years
● ITR of partners/directors for the previous 2 years
● Bank acc ount statements for the past 6 months
● Proforma invoice to the equipment that is to be financed
● For lawyers, CAs, architects, and doctors - Professional qualification
certificates
8.2.8 Criticism of Microfinance:
Microfinance has been lauded by many, as it is a c lear passage to end the
cycle of poverty, aid the marginalized sections, decrease unemployment,
and improve their earning power. However, it has also received criticism
from certain corners, as it was argued that microfinance actually makes
poverty worse. The fact that some borrowers of microfinance use these
loans to pay off their existing debts or fund their basic necessities
reinforce these arguments.
The situation is more adverse in countries like South Africa where the
majority of microfinance loans ar e consumed by the borrower for basic
necessities. When borrowers do not generate new income from the initial
loan, they are forced to take out more loans to repay the former. This
simply snowballs into a bigger debt trap.
8.3 SELF HELP GROUP 8.3.1 Meaning:
The major form of microfinance in India is that based on women's Self
Help Groups (SHGs), which are small groups of 10 -20 members. These
groups collect savings from their members and provide loans to them.
Self Help Groups (SHGs) are a homogenous group of 10 -20 individuals
who come together to save and internally help each other in times of need.
8.3.2 Origin and development of SHGs in India:
● The origin of SHGs in India can be traced back to the establishment
of the Self -Employed Women’s Association (SEWA) in 1972. munotes.in
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91 Rural Empowerment Programmes – 2 ● Even before, there were small efforts at self -organising. For example,
in 1954, the Textile Labour Association (TLA) of Ahmedabad formed
its women’s wing in order to train the women belonging to families of
mill workers in skills such as sewing, knitting, e tc.
● Ela Bhatt, who formed SEWA, organised poor and self -employed
women workers such as weavers, potters, hawkers, and others in the
unorganised sector, with the objective of enhancing their incomes.
● NABARD , in 1992, formed the SHG Bank Linkage Project, which is
today the world’s largest microfinance project.
● From 1993 onwards, NABARD, along with the Reserve Bank of
India, allowed SHGs to open savings bank accounts in banks.
● The Swarn Jayanti Gram Sw arozgar Yojana was introduced in 1999
by GOI with the intention of promoting self -employment in rural
areas through formation and skilling of such groups. This evolved into
the National Rural Liveliho ods Mission (NRLM) in 2011.
8.3.3 Functions of Self Help Groups :
● They try to build the functional capacity of poor and marginalised
sections of society in the domain of employment and income -
generating activities.
● They offer collateral -free loans to sections of people that generally
find it hard to get loans from banks.
● They also resolve conflicts via mutual discussions and collective
leadership.
● They are an important source of microfinance services to the poor.
● They act as a go -through for formal banking servic es to reach the
poor, especially in rural areas.
● They also encourage the habit of saving among the poor.
8.3.4 Need for Self Help Groups :
● One of the chief reasons for rural poverty is the lack of access or
limited access to credit and financial services.
● The Ran garajan Committee Report highlighted four major reasons for
lack of financial inclusion in India. They are:
● Inability to give collateral security
● Weak credit absorption capacity
● The insufficient reach of institutions
● Weak community network munotes.in
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92 Rural Development ● It is being reco gnised that one of the most important elements of
credit linkage in rural areas is the prevalence of sound community
networks in Indian villages.
● SHGs play a vital role in giving credit access to the poor and this is
extremely crucial in poverty alleviatio n.
● They also play a great role in empowering women because SHGs help
women from economically weaker sections build social capital.
● Financial independence through self -employment opportunities also
helps improve other development factors such as literacy le vels,
improved healthcare and better family planning.
8.3.5 Advantages of Self Help Groups :
● Financial Inclusion – SHGs incentivise banks to lend to poor and
marginalised sections of society because of the assurance of returns.
● Voice to marginalised – SHGs have g iven a voice to the otherwise
underrepresented and voiceless sections of society.
● Social Integrity – SHGs help eradicate many social ills such as dowry,
alcoholism, early marriage, etc.
● Gender Equality – By empowering women SHGs help steer the nation
towar ds true gender equality.
● Pressure Groups – SHGs act as pressure groups through which
pressure can be mounted on the government to act on important
issues.
● Enhancing the efficiency of government schemes – SHGs help
implement and improve the efficiency of go vernment schemes. They
also help reduce corruption through social audits.
● Alternate source of livelihood/employment – SHGa help people earn
their livelihood by providing vocational training, and also help
improve their existing source of livelihood by offe ring tools, etc. They
also help ease the dependency on agriculture.
● Impact on healthcare and housing – Financial inclusion due to SHGs
has led to better family planning, reduced rates of child mortality,
enhanced maternal health and also helped people figh t diseases better
by way of better nutrition, healthcare facilities and housing.
● Banking literacy – SHGs encourage people to save and promote
banking literacy among the rural segment.
8.3.6 Problems of Self Help Groups (SHGs) :
● Need for extending this idea into t he poorest families, which is not
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93 Rural Empowerment Programmes – 2 ● Patriarchal mindset prevailing which prevents many women from
coming forward.
● There are about 1.2 lakh branches of banks in rural areas as opposed
to 6 lakh villages in the country. There i s a need to expand banking
amenities further.
● Sustainability and the quality of operations of such groups have been
questionable.
● There is a need for monitoring cells to be established for SHGs across
the country.
● The SHGs work on mutual trust. The deposit s are not safe or secure.
8.4 SUMMARY The term “rural development‟ is the overall development of rural areas to
improve the quality of life of rural people. Rural development is the
process of improving the quality of life and economic well-being of
people living in rural areas , often relatively isolated and sparsely
populate d areas. According to Census 2011, out of a total population of
121 crores, around 70% i.e. 83.3 crores live in rural areas. The
restructured PURA scheme has been approved by the Government for
implementation on a pilot basis during the 11th five year plan .
In pursuance to the announcement of Prime Minister on Independence
Day, 2003, the Planning Commission submitted a proposal for approval of
the Government to implement PURA scheme. The scheme was approved
by the Government „in -principle‟ in January 2004.
National Rural Employment Guarantee Act 2005, is an Indian labour law
and social security measure that aims to guarantee the ‘right to work’.
There are various sub -schemes under MNREGA such as Aajeevika
Grameen Express Yojana (AGEY), Mahila Kisan Sashakti karan
Pariyojana (MKSP), Start -up Village Entrepreneurship Programme
(SVEP), National Rural Livelihoods Project (NRLP) etc.
Microfinance is a way in which loans, credit, insurance, access to savings
accounts, and money transfers are provided to small busin ess owners and
entrepreneurs in the underdeveloped parts of India.
Self Help Groups (SHGs) are a homogenous group of 10 -20 individuals
who come together to save and internally help each other in times of need.
SHGs are important to face the challenge of rural poverty where there is a
lack of access or limited access to cr edit and financial services.
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94 Rural Development 8.5 QUESTIONS Q1. Elaborate National Social Assistance Program.
Q2. Discuss the role of Microfinance.
Q.3 State and explain advantages of Self Help Group.
*****
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Question Paper Pattern (For IDOL Students Only)
TYB A SE M VI (Economics) – for all Six papers
Time: Three Hours Total Marks: 100 Marks
Please Check whether you have got the right question paper.
N.B. 1) All questions are compulsory. Attempt Sub questi on (A) or (B)
of Question no. 5
2) Figures to the right indicate marks.
3) Draw neat diagrams wherever necessary.
Q1. Answer any TWO questions of the following. 20 Marks
a.
b.
c.
Q2. Answer any TWO questions of the fol lowing. 20 Marks
a.
b.
c.
Q3. Answer any TWO questions of the following. 20 Marks
a.
b.
c.
Q4. Answer any TWO questions of the following. 20 Marks
a.
b.
c.
Q5. (A) Write short notes on any TWO of the following.
20 Marks
a.
b.
c.
d.
OR
(B) Multiple choice questions, select an appropriate option
(20 MCQs) 20 Marks
****** munotes.in