Rural Development – Indian Economy

Rural Development

Rural development means an action plan for the social and economic growth of the rural areas

Rural Development

● The action plan is to focus on the lingering and emerging challenges are

Lingering challenges of Rural Development

  a. Challenge of rural credit

  b. Challenges of rural marketing


A. Challenges of Rural Credit (Credit for agriculture)


Source of credit


 1. Non – institutional sources

    a. Zamindar

    b. Landlords

    c. Money lenders

    d. Relatives


benefits of non institutional source

  1. Easily loan provide

  2. No need of collateral security

  3. Quick loan/anytime

  4. No need of legal documents

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Problems/Drawback of non institutional source

  1. High rate of interest in an institutional source

  2. Exploitation of farmers


● But in 1981 the institutional source emerged as the principal channel of rural credit


2. Institutional sources

    1. Cooperative credit societies

    2. Commercial banks

    3. Regional rural bank

    4. NABARD ( National bank for Agriculture and  Rural Development)


B. Challenges of rural(Agricultural) marketing


After harvesting the farmer needs to assemble their produce on the farm process it, grade it, package it and store it before it is finally brought to the market for sale


It includes the service involved in moving the Agricultural Products from farm to the consumer


Problems of Agricultural marketing

   1. Lack of storage facility

   2. Lack of transportation

   3. Lack of marketing information in farmers

   4. Lack of regulated market

   5. Lack of credit facilities


Measures by the government to improve Marketing System


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   1. Regulated market (where sale and purchase) regulation by the government

   2. Cooperative agricultural marketing societies

( many farmers together sell and buy of fertilizers and etc this is Easy cost of farmers)

3. Provision of warehousing facilities

4. Minimum support price (MSP) policy

5. Subsidies transport

6. Provide Marketing Information


● Alternative marketing channels – Big Bazaar, Apni Mandi, Rythu Bazar


Diversification of Agricultural activities


● It refers to the shift from crop farming to the other areas of production for employment

● it raises the level of income and reduce the overburden on agriculture


1. Diversification of crop production

Single cropping system to multi-cropping (scientific crop rotation)

2. Diversification of production activities/ employment (non farming primary sector)

eg- Animal husbandry, Fisheries, Horticulture.


● Golden Revolution – This revolution is started for Horticulture


Organic farming and sustainable development


Sustainable development

It refers to the development of present and the generation without hampering future generations

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Organic farming

The process of producing food naturally without use of chemical fertilizers

( use of natural bio paste. eg – cowdunk, homemade westage)

Benefits of organic farming

1. Eco friendly

2.  labour intensive

3. Healthy and tasty food

4. Less expensive method

Conclusion: In this article we learn that ‘Rural Development’. This Article Is Very Important For All students who adopt ‘Indian Economy’ Subject.

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